Financing for an E-2 visa can be tricky but there are options other than paying 100% cash for your deal. The US Immigration Service assumes that foreign investors have a great deal of cash lying around to purchase US businesses or create them. The reality is that foreign investors don’t always want to pay 100% cash for their deal. So how can you create a company that will work for an E-2 visa without 100% cash down. Keep in mind that the US Immigration Service doesn’t recommend financing more than 25-30% of the business assets used as collateral for the loan. For example, if you have a business worth $500,000 and you want to finance 50% of it via a loan, the less you secure by a loan the better. It is also recommended that you secure the loan with assets other than the US business for E-2 purposes. Often a seller will allow a carryback note, if that is the case you want to make sure you have paid for at least 50% of the US Business before you do a seller carryback note for the other 50%. Keep in mind for those of you that may want to pay 100% cash, you can also make the purchase contract of the business you are buying in the US contingent on issuance of the E-2 visa by the US Consulate, so that your funds to complete the contract will be automatically released upon approval of your visa.
It is important to discuss all your financing options with an experienced Immigration Attorney to make sure you are comfortable with the financial aspects of your E-2 visa case. Please feel free to contact me at [email protected] or 480-994-8888. I have over fifteen years of experience as an Immigration Attorney and have worked on E-2 visa applications for small and large businesses. I offer a free initial consultation to all potential E-2 visa applicants.
We at SellingRestaurants feel obligated to educate the public, our customers and our clients with information that can help them make more intelligent buying and selling decisions.
Mel Jones is one of the premier restaurant brokers in the nation having published hundreds of articles on buying and selling a restaurant and bar business, selling thousands of restaurants in CA., WA and AZ and building one of the most copied business models in the brokerage industry. Mel started SellingRestaurants in 2004 with the one simple concept, give the buyers the information they need to make intelligent buying decisions without being pestered by a broker or hiding information, prepare the business for market by researching key details that make or break deals and educate the buyer on the buying process to create an intelligent buyer. Prior to SellingRestaurants, Mel was a Chief Financial Officer for Universal Music Group, the largest music company in the world. There he participated in more than $11.5 billion of merger and acquisition transactions. He also work for top companies such as Nestle Foods, USA. He hold a Bachelors in Business Administration Finance as well as attened Law School at Gonzaga University. Give Mel a call at 480.274.7000 or e-mail him at [email protected] if you have any questions.