Representative Howard Berman (Democrat, California) has introduced a bill allowing Israeli nationals to apply for an E-2 investor visa to the US. Israelis are currently ineligible for this type of visa, which is a nonimmigrant visa that permits foreign investors to temporarily live and work in close proximity to their investments in the US. This will allow Israelis who invest in a new or existing business in the US, in an amount that is less than the price of an apartment in metropolitan Tel Aviv, to reside and work in the US with their families. An E-2 visa can be renewed for two-year periods so long as the business exists.
The bill has bipartisan support, a rare phenomenon in Congress in the schism-filled year of 2012. The bill is co-sponsored by Representatives Lamar Smith (Republican, Texas), Zoe Lofgren (Democrat, California), and Ileana Ros-Lehtinen (Republican, Florida). The Senate companion bill was introduced by Senators Charles Schumer (Democrat, New York) Mark Kirk (Republican, Illinois) and Jon Kyl (Republican, Arizona). Sources believe that the final bill will be submitted for President Barack Obama's signature within a few months.
"This is a very important improvement; a real breakthrough after many years in which Israeli official and business parties have tried to amend the US-Israel trade agreement to permit the issue of investor visas," Adv. Nimrode Pantz, of the Dearson, Levi, & Pantz law firm told "Globes". The Washington DC firm specializes in immigration and relocation.
Pantz said that the bill, if passed, will open to the US whole groups of Israel who, until now, could make short visits with tourist visas.
Berman said, “My legislation will encourage Israeli business leaders to invest in the United States and lead to the creation of jobs for American workers. Israel is one of our closest allies in the world and a significant investor in the US economy. The E-2 investor visa program will strengthen the vital US-Israel relationship, boost the American middle class, and help grow the economies of both countries."
For decades, Israelis have only been eligible for E-1 trader visas, which permit entry for nationals whose "volume of such trade must be sufficient to justify the trader or his/her employee(s) being in the United States to manage the trade, and must constitute the majority of the trader's international trade." In practice, this applies to representatives of large Israeli companies, mostly in high tech, which have branches in the US, and major businesspeople.
An E-2 investor visa is essentially the "people's version" of an E-1 visa, while academics and other professionals usually obtain an H-1B visa. According to Pantz, the threshold conditions for an E-2 visa are much lower, to allow non-US nationals to enter the US to manage an operating business - investments in real estate or securities do not count. An applicant only has to prove that he or she owns or controls a business in the US. The visa does not stipulate a minimum investment, it only has to be "sufficient".
The wording is intended to tailor the amount of the investment to the nature of proposed business. For example, whereas tens of millions of dollars are needed to found a bank, but only $200,000 is needed to is needed to set up shop in New Jersey.
Pantz says that an E-2 visa has important advantages. It can be extended as long as the investment conditions exist, there is no quota to the number of visas issued, and, subject to certain conditions, the businessperson can transfer to the US foreign employees from his own country - Israel in this case. The visa also allows the holder to bring his or her family to the US, it does not require a higher degree, and there is no restriction on the type of business. Finally, an E-2 visa offers fast-track status to a Green Card.
The reason why Israelis have not been eligible for E-2 visas is reportedly because, for decades, Israel did not encourage something that would help capital flight and the departure of its citizens to the US.
That was then. Now, Israeli Ambassador Michael Oren said, "We welcome legislation introduced in Congress to add Israel to the list of nationals eligible for E-2 visas. I commend the sponsors of this bill, both in the House and the Senate, for undertaking this important initiative. The bill reflects the special and deep friendship between Israel and the US. In working with the Embassy of Israel's Office of Congressional Affairs and its Economic Mission, and with the introduction of this legislation, the US Congress advances shared political and economic interests that will enable the business communities in both countries to expand bilateral investments."
Published by Globes [online], Israel business news - www.globes-online.com - on February 12, 2012
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