US President Barack Obama yesterday signed into law legislation allowing Israeli citizens to obtain E-2 investor visas, to which they were not previously eligible. Under the E-2 visa, Israelis will be able to invest in a new or existing operating business in the US an amount that could be less than the price of an apartment in greater Tel Aviv, and be eligible for the visa with their families.
Israel is now among the 75 countries whose nationals are eligible for E-2 visas. An important provision of the law is that the Israeli government shall provide similar nonimmigrant status to US nationals.
The law states that the E-2 is for a "foreign national must come to the US to develop and direct the operations of a business in which the applicant has invested, or is in the process of investing a substantial amount of capital."
Until now, Israelis were only eligible for E-1 visas, which are available for "nationals of a country who undertake a significant amount of international trade with the US". In practice, these visas have been available for employees of large Israeli companies, usually high-tech companies with US offices, and major businesspeople.
Nimrode Pantz of the Dearson, Levi, & Pantz law firm, which practices immigration law, told "Globes" that the new law could open the US to Israelis who until now mainly made brief visits to US under tourist visas. He cautioned, however, against too much enthusiasm, in view of reports that E-2 visas would enable Israelis to enter the US for $50,000.
"The law does open to Israelis an active investment channel in businesses," says Pantz. "But the law does not set a minimum amount, or specific amount for investment; it says a 'substantial amount'. It is therefore necessary to distinguish between potential investment by the type of business and its size. The law for investment in the acquisition of the controlling core of a communications company, for example, is not equivalent to investment in a laundry or electronics retail business. Each case will be reviewed on its merits by the US consular officials in Tel Aviv."
The E-2 investor visa also grants a US work permit to the spouse of the investor. The investor does not need to have a higher degree, and, possibly, most important, it does not restrict the kind of business, except to say that it is "operational". The visa makes the investor eligible for fast-track application for a Green Card.
Israel's Ambassador to the US Michael Oren welcomed the new law, saying that it reflects the deep friendship between Israel and the US. It encourages mutual economic growth and it will expand investment opportunities."
Representative Howard Berman (Democrat - California), who is the senior Democrat on the House Foreign Affairs Committee, initiated the bill, which is named for him. The bill won broad bipartisan support - the vote in the House was 371-0 - which has highly unusual in both the House of Representatives and the Senate in recent years.
In a statement yesterday, Berman said, "This bill sends enterprising Israeli investors a clear and unambiguous message: The United States is open for business. The expansion of Israeli enterprises here will result in job creation for American workers. Israel is an incubator of entrepreneurship, already a global leader in security and defense technologies, medicine, agriculture, and clean energy. Our nation will benefit greatly from bringing their innovations and scientific advancements to our shores."
Berman added, "The greater Los Angeles area is home to an estimated 250,000 Israeli-Americans. As one of the largest populations of Israeli-born residents outside of Israel, it is a magnet for investment and economic development stemming from Israel."
Published by Globes [online], Israel business news - www.globes-online.com - on June 12, 2012
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