How to secure the E2 Investment through Escrow Agreement

April 27, 2021 |

Several entrepreneurs and companies who are willing to invest in the US have to undergo certain commitments and agreements. One such potential is through obtaining the E2 escrow agreement to commence your business or company. However, for that, one is required to place all their investment funds’ ‘at-risk.’ You must think about how a company applies for it and when does it reach you? Well, you need to acquire such agreements even before you go ahead with the visa application through the visa consultant

Besides, you can also protect your business interest and ensure your funds are at risk through the E2 escrow agreement.

How To Put Your Investment Funds “At-Risk”?

To make it more precise and specific, your E2 visa application requires the funds to be at-risk. This simply implies that one has to own committed funds against the company you want to buy or begin. Because of such a fact, funds kept in your bank, set aside for the company are not those considered to be at-risk. Furthermore, a loan that you have secured against the proposed assets is also not risky. The process requires you to be personally liable in default events.

All You Need To Know About Risked Funds & Investment Amount

You must be thinking of all your funds that are needed to be at risk for you to qualify? That is not the case. The investment funds are a bit different from funds you need to put at risk. Your company’s investment fund is a set of amounts that you intend to invest in the enterprise. If you are planning to invest the x amount into your business, it will be considered as your investment fund, which is your working capital that cannot be placed at risk.

The amount ‘at risk’ covers all the funds you have spent or intend to spend on the company. This comprises lease, legal fees, inventory, and equipment. In case, you are applying for a visa from Dubai, get in touch with immigration consultants in Dubai.

What Does An E-2 Escrow Agreement Do?

The amount you invest in your business is a lot of money and you would not want to observe it go in vain if the visa application gets rejected. When you apply for E2 escrow agreements, they tend to provide a safe way to protect your funds. And, all of this occurs while you are proceeding with the E2 application. If you are wondering how such an agreement works, here is something you might want to know.

  • When you wish to purchase assets for the E2 business, you can enable your lawyer to come up with an escrow agreement for that particular transaction.
  • The draft will specify that all the funds will get transferred to the escrow agent and will be released, provided the E2 application gets approved.

In reality, all the money has gone from your control as per the agreement. Moreover, this situation has to occur after you have placed the money at risk. Consequently, the key is to declare your funds at risk to enable permanent transfer, which is dependent on your E2 visa approval.

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