EB-5 vs. E-2: What is the Difference?

While E-2 has its advantages, those seeking permanent U.S. residency will eventually need to pursue an immigrant visa program such as EB-5.

Many countries have citizenship-by-investment (CBI) programs that allow individuals to gain residency and/or citizenship by making qualifying capital investments. For those who can afford it, gaining a second passport can bring tax or travel benefits; and depending on your country of origin, personal or business relocation may be most easily achieved through CBI.

While the United States has no CBI program, it is possible to seek permanent residency through the EB-5 Immigrant Investor Program. Unlike most CBI programs, EB-5 creates jobs and directs investment toward underserved communities in addition to facilitating immigration.

There is another popular path known as E-2. At first glance, the programs may appear similar, but there are some key differences that make E-2 more achievable for some while not offering all the advantages EB-5 provides.

What is an E-2 visa?

The E-2 Visa for Treaty Investors falls under the E system and its procedures. It is a non-immigrant visa, meaning it is for temporary residency in the U.S. under the following conditions (emphasis added):

The E-2 nonimmigrant classification allows a national of a treaty country (a country with which the United States maintains a treaty of commerce and navigation, or with which the United States maintains a qualifying international agreement, or which has been deemed a qualifying country by legislation) to be admitted to the United States when investing a substantial amount of capital in a U.S. business. Certain employees of such a person or of a qualifying organization may also be eligible for this classification.

To qualify for E-2, investors from treaty countries must:

1. Be a national of a country with which the United States maintains a treaty of commerce and navigation;
2. Have invested, or be actively in the process of investing, a substantial amount of capital in a bona fide enterprise in the United States; and
3. Be seeking to enter the United States solely to develop and direct the investment enterprise. This is established by showing at least 50% ownership of the enterprise or possession of operational control through a managerial position or other corporate device.

Note the investor must “have invested, or be actively in the process of investing” the capital. This allows for some flexibility in terms of the timeline; you don’t have to wait until the entire investment has been made to file.

If your business requires employees with specific expertise, they can also apply for an E-2 visa to work at your business if they are from the same country. There is a max of two investors who can apply per business, but no cap on employee applications, provided the individual is “employed in a supervisory, executive, or specialized skills capacity.”

Differences between E-2 and EB-5

Permanence

Looking again at the rules for a E-2:

Qualified treaty investors and employees will be allowed a maximum initial stay of two years. Requests for extension of stay in, or changes of status to, E-2 classification may be granted in increments of up to two years each. There is no limit to the number of extensions an E-2 nonimmigrant may be granted. All E-2 nonimmigrants, however, must maintain an intention to depart the United States when their status expires or is terminated.

The first thing to understand is that E-2 is a non-immigrant visa, and does not provide permanent residency. A green card can only be obtained through an immigrant visa program like EB-5.

Technically, an E-2 visa could be renewed an unlimited number of times. However, E-2 requires an intent to return to one’s country of origin. If it’s determined that you came to the U.S. on an E-2 visa with no intention of leaving, your immigration status could be revoked.

Amount of investment

The minimum investment amount for EB-5 was updated by the EB-5 Reform and Integrity Act of 2022 (RIA). The minimum for projects in rural or urban high-unemployment areas, as well as infrastructure projects, is now $800,000. For all other projects, the minimum is $1,050,000.

In contrast, E-2 only requires an investment of a “substantial amount,” which isn’t defined as a specific dollar amount, but rather described as:

1. Substantial in relationship to the total cost of either purchasing an established enterprise or establishing a new one
2. Sufficient to ensure the treaty investor’s financial commitment to the successful operation of the enterprise
3. Of a magnitude to support the likelihood that the treaty investor will successfully develop and direct the enterprise. The lower the cost of the enterprise, the higher, proportionately, the investment must be to be considered substantial.

Since there is “no set dollar figure” to be considered substantial, it’s possible for an E-2 application to be successful with a much smaller investment than EB-5. When factoring in application fees and other costs, E-2 would likely be less expensive for most investors – which makes sense, given that it doesn’t provide permanent residency.

Type of business enterprise

E-2 is designed for investments in companies where the investor has a significant role. Therefore, investors are only permitted to work at the company in which they made their investment (though a spouse can apply for authorization to work in the U.S. outside the E-2 company).

It’s also important that the company not be “marginal,” meaning it should be able to provide lasting and significant income. This is to avoid someone making a token investment in an inactive company in order to gain temporary residency.

EB-5 allows investors and their families to work outside of the EB-5 investment, which can be made through a Regional Center for a project the investor has no day-to-day role in other than their capital commitment. This means they are free to pursue other ventures and build upon their relationships in the country, further establishing their connection to the United States.

One advantage of E-2 is that it allows non-family employees of the business to apply. This is not something allowed under EB-5, so if you are looking to facilitate a non-relative’s move to the United States, E-2 may be the way to do that, though it would not be permanent unless that person subsequently pursues an immigrant visa.

Speed and requirements

EB-5 can be a slow process. The demand for visas from countries like China, India, and Vietnam means processing times can stretch to many years. Even if you’re not from one of those countries, your investment will still be at risk for a considerable period of time. EB-5 also has strict requirements regarding the necessary paper trails for source of funds and job creation that can make it a long and difficult process.

E-2 has no job creation requirements and fewer rules for source-of-funds documentation. It’s been estimated that around 80% of E-2 applicants receive a decision in less than 4 months, and it’s also possible to receive “premium processing” for an additional fee ($2,805 in 2025).

However, an E-2 visa doesn’t allow those investors to stay in the country permanently, unless they subsequently apply for Adjustment of Status. In the past, some investors eager to live and work in the U.S. in the short term may have chosen E-2’s speed and simplicity over EB-5’s permanence. But now that the RIA’s reserved visas for rural and urban high-unemployment projects are making processing times faster, EB-5 is more attractive than ever.

Is it possible to go from E-2 to EB-5?

It is possible to be an E-2 visa holder and obtain a green card through the EB-5 program. However, as mentioned, an E-2 visa requires an intent to return to one’s country of origin. If it is ruled that you fraudulently entered the country on an E-2 visa while intending to stay permanently, you could face deportation.

If you come to the United States on an E-2 visa for a legitimate business, and that business becomes successful, it’s natural that you may want to stay permanently. For those E-2 holders, transitioning to EB-5 could be a way of obtaining permanent residency.

One advantage of going from E-2 to EB-5 is that it’s possible for an E-2 business to facilitate a direct EB-5 investment. Though less popular than investing through the Regional Center Program, direct investment can allow those with active businesses to create the requisite jobs in industries they know while building companies that will last beyond the life of the EB-5 petition.

However, it may not be feasible or wise from a business perspective to take on that level of investment and create the necessary number of full-time jobs. To avoid negatively affecting an already-thriving business, you could instead invest through the Regional Center Program like 95% of EB-5 investors.

Which is safer, E-2 or EB-5?

E-2 involves investing in a business in which you are personally involved, including existing businesses, so you wouldn’t be committing capital to an enterprise outside your area of expertise. This could be a business you’ve operated in your home country for some time, or have already expanded to the U.S. market. For those in such a situation, E-2 might seem less risky from a financial standpoint. But many people don’t have the types of businesses that lend themselves to E-2, so for them, this advantage wouldn’t exist.

It’s true that E-2 involves a smaller capital investment, so less money is being put at risk. But that doesn’t take into account the largest risk immigrant investors take, which is the risk of losing their immigration status. As mentioned, you can renew E-2 an unlimited number of times, or eventually apply for EB-5 while on an E-2 visa; but if you are deemed to have acted fraudulently, you could lose your ability to permanently reside in the U.S.

There is also the possibility that U.S. immigration policy could change. While petitions filed by September 30th, 2026, will be processed under the rules of the RIA, the Regional Center Program requires reauthorization to continue past September 30th, 2027. If it isn’t, those who waited to pursue EB-5 will have missed their chance.

Anything could happen. EB-5 and E-2 could both be repealed by Congress. The rules for these programs could change. They could be replaced by different programs. While JTC and our industry colleagues have pushed for permanent reauthorization of the Regional Center Program, it’s also been suggested that EB-5 could be replaced by the $5 million Gold Card Visa. That’s a lot more than EB-5 currently costs, and more than many can afford.

For these reasons, choosing not to pursue EB-5 right now could be the biggest risk of all. We know the Regional Center Program exists right now and that reserved visas are available. If you want to move to the U.S. permanently, why wait?