Tag Archives: USCIS

EB2 NIW Green Card Visa 2023: In the National Interest

EB2 NIW Green Card Visa in 2023

Attorneys and their clients have long struggled with the question of how to get green cards for qualified applicants that don't have $800,000 or $1,050,000 to invest in an EB-5 project.  With a recession imminent in 2023, an answer becomes even less clear.  The EB2 NIW visa, however, is a viable path for those that qualify and can establish that their proposed endeavor in the United States will be in the national interest.  The operative phrase is in the national interest.

While the EB2-NIW green card visa seems an obvious alternative, it is not as easy as submitting an application for a qualified individual. If it were that easy, there would be many more of them issued each year.  

Too often the assumption is made that an EB2 NIW petition will be approved just because the applicant is qualified academically--even if no attempt is made to show their proposed endeavor will be in the national interest.

Nothing could be farther from the truth. Our EB2 NIW green card visa plans only present endeavors that are reasonable and can be quantifiably shown to be in the national interest. The proposed endeavor we present is substantial--and so is its impact.

The Matter of Dhanasar Litmus Test

The EB2 NIW Green Card Visa provides for the waiver of job offer and labor certification requirements for certain advanced degree professionals and individuals of exceptional ability. What does that mean?  Essentially, you may be eligible if you are a professional of exceptional ability or a holder of an advanced degree who can provide meet the three-prong Matter of Dhanasar requirements: 

  • The person’s proposed endeavor has both substantial merit and national importance;
  • The person is well positioned to advance the proposed endeavor; and
  • It would be beneficial to the United States to waive the job offer and thus the permanent labor certification requirements.

Because the EB2 NIW process provides a streamlined method for obtaining a green card visa, the bar is considerably higher for establishing eligibility.  In 2023, as competition increases for this green card visa, exceptional presentations will be required for acceptance.

Meeting the Matter of Dhanasar Standard

Our EB2 NIW visa immigration business plans effectively validate  eligibility and qualifications to meet current regulations, policies and adjudication trends.  Most importantly, we do not create proposed endeavors based on hyperbole or exaggerated claims--just a fact-based demonstration of how the proposed endeavor will further the national interest.  

EB2 NIW Green Card Visa Business Plans

Many vendors promise 100% approval rates and those claims may be true.  But often the caveat is that you are assured of getting the visa after successfully answering one or more RFEs.  Our plans are created with the intent that they will be approved without an RFE. 

Pricing starts at $1,650--for an exceptional plan  

EB2 NIW Green Card Visa Qualification

Qualification for the EB-2 classification as a member of the professions holding an advanced degree or as a person of exceptional ability does not automatically mean that the person qualifies for a national interest waiver. Regardless of whether the person is an advanced degree professional or demonstrates exceptional ability, the petitioner seeking a waiver of the job offer must not only demonstrate eligibility for the classification, but also demonstrate that the waiver itself is in the national interest.

Specifically, in the exceptional ability context, the INA requires that all petitions for a person of exceptional ability show that the person’s presence in the United States would substantially benefit the national economy, cultural or educational interests, or welfare of the United States in the future. Even if the petitioner demonstrates such exceptional ability, if the petitioner is seeking a waiver of the job offer, the petitioner must also demonstrate the additional requirement of national interest. Neither the INA nor the regulations define the term “national interest.”

The burden rests with the petitioner to establish that the waiver of the job offer requirement is in the national interest. USCIS considers every petition on a case-by-case basis.

SEE WAIVER OF JOB OFFER

The Burden of Proof for EB2 NIW Green Card Visa Qualification

As is the case with most employment- or investment-based visas, a credible case for eligibility is essential to a successful EB2 national interest waiver petition.  This case should be made thoughtfully in the business plan with solid required documentation to support it. 

Sometimes, however, an emphasis on gathering and assembling adequate documentation can cause a key component to be overlooked.  Make no mistake:  The petition will not be approved without all of the required documentation.  But it will also be at risk if the question remains unanswered as to how the petitioner's qualifications are going to serve the national interest.   

Our EB2 national interest waiver business plans clearly state how approval of the application will in fact further the national interest.  This question is more difficult to answer so sometimes it is simply ignored.

Matter of Dhanasar, December 27, 2016

USCIS may grant a national interest waiver if the petitioner demonstrates: (1) that the foreign national’s proposed endeavor has both substantial merit and national importance; (2) that he or she is well positioned to advance the proposed endeavor; and (3) that, on balance, it would be beneficial to the United States to waive the job offer and labor certification requirements. Matter of New York State Dep’t of Transp., 22 I&N Dec. 215 (Acting Assoc. Comm’r 1998), vacated. This download, 26 I&N Dec. 884 (AAO 2016), contains the full text of the Matter of Dhanasar decision.

Just What is in the National Interest?

In The National Interest

Noncitizens seeking a national interest waiver are requesting that the Labor Certification be waived because it is in the interest of the United States. Though the jobs that qualify for a national interest waiver are not defined by statute, national interest waivers are usually granted to those who have exceptional ability (see above) and whose employment in the United States would greatly benefit the nation.

(ii) Sufficient to ensure the treaty investor's financial commitment to the successful operation of the enterprise; and

(iii) Of a magnitude to support the likelihood that the treaty investor will successfully develop and direct the enterprise. Generally, the lower the cost of the enterprise, the higher, proportionately, the investment must be to be considered a substantial amount of capital.

This is a discretionary evaluation with nothing but guidance to direct either the applicant or the adjudicator.

This is the guidance offered by the USCIS:  The endeavor’s merit may be demonstrated in a range of areas such as business, entrepreneurialism, science, technology, culture, health, or education. Evidence that the endeavor has the potential to create a significant economic impact may be favorable but is not required, as an endeavor’s merit may be established without immediate or quantifiable economic impact.

For example, endeavors related to research, pure science, and the furtherance of human knowledge
may qualify, whether or not the potential accomplishments in those fields are likely to translate into economic benefits for the United States.

The current trend in this area--which appears to favor STEM contributors--is described in the recent Executive Order 14012.  If you can verify that you have exceptional ability or an advanced degree in science, technology, engineering, or mathematics, you will likely have an easier time getting a qualifying endeavor approved.

What is Exceptional Ability?

There are various ways to show that the business is more than marginal, in the sense of only providing a livelihood for the applicant. If the business does not yet generate sufficient income necessary to support the applicant and family, then one can look to the economic impact of the business. The enterprise must have the present or future capacity to generate more than a minimal living for the investor and family in order to make a significant economic contribution. 

Exceptional Ability

You must be able to show exceptional ability in the sciences, arts, or business, which will greatly benefit the US economy, cultural or educational interests, or welfare in the future. Exceptional ability means:

a degree of expertise significantly above that ordinarily encountered in the sciences, arts, or business.

Advanced Degree

An advanced degree is any US academic or professional degree or a foreign equivalent degree above that of baccalaureate. A US baccalaureate degree or a foreign equivalent degree followed by at least five years of progressive experience in the specialty is considered the equivalent of a master’s degree. If a doctoral degree is customarily required by the specialty, the beneficiary must have a US doctorate or a foreign equivalent degree.

What is an Advanced Degree?

A beneficiary can satisfy the advanced degree requirement by holding either a:

  • United States master’s degree or higher or a foreign degree evaluated to be the equivalent of a US master’s degree or higher; or
  • United States bachelor’s degree, or a foreign degree evaluated to be the equivalent of a US bachelor’s degree, plus five years of progressive, post-degree work experience.

A beneficiary who does not possess at least a US bachelor’s degree or a foreign equivalent degree is ineligible for this classification.

EB2 NIW Plan RFEs

If you have received an RFE from an application you made, please get in touch with us.  Our RFE responses are highly successful because they provide reasonable, solid answers to USCIS queries.  The USCIS likes them and that is all that matters. 

EB2 NIW Documentation Required

  • If the alien holds an advanced degree:
    • An official academic record showing they have a US advanced degree or a foreign equivalent degree, or
    • An official academic record showing they have a US baccalaureate degree or a foreign equivalent degree and letters from current or former employers showing they have at least five years of progressive post-baccalaureate experience in the specialty.
  • If the alien is seeking to qualify as having an exceptional ability in the sciences, arts, or business:
    • An official academic record showing they have a degree, diploma, certificate, or similar award from a college, university, school, or other institution of learning relating to the area of exceptional ability;
    • A letter from a current or former employer showing the alien has at least 10 years of full-time experience in the occupation;
    • A license to practice the profession or certification for a particular profession or occupation;
    • Evidence the alien has commanded a salary or other pay for services that demonstrates exceptional ability;
    • Evidence of membership in professional associations; or
    • Evidence of recognition for achievements and significant contributions to the industry or field by peers, governmental entities, or professional or business organizations.
    • If the above standards do not readily apply to the beneficiary’s occupation, the petitioner may submit comparable evidence to establish the beneficiary’s exceptional ability.
  • If waiving the job offer/labor certification requirement:
    • Either Parts J, K, L, and M of ETA Form 9089 or Part B of the Form ETA 750;
    • Evidence showing the waiver would be in the national interest, including:
      • How their proposed endeavor has both substantial merit and national importance;
      • How the alien is well-positioned to advance the proposed endeavor; and
      • How it would be beneficial to the United States to waive the job offer, and thus the labor certifications requirements.

EB2 NIW Green Card Visa Business Plans

Many vendors promise 100% approval rates and those claims may be true.  But often the caveat is that you are assured of getting the visa after successfully answering one or more RFEs.  Our plans are created with the intent that they will be approved without an RFE. 

Pricing starts at $1,650--for an exceptional plan  

The Three Prongs and the Adjudicator's Guidelines

Three-prong test, NIW, National Interest Waiver, NIW Visa, Dhanasar, Matter of Dhanasar, Dhanasar three prongs, green card visa, AAO Decisions, US Department of Homeland Security, US Citizenship and Immigration Services, USCIS, Administrative Appeals Office, AAO, DHS, INA, Immigraton and Natonality Act, What is the Matter of Dhanasar?, What are the Dhanasar three prongs?, sample NIW, NIW RFE, extraordinary ability, employment-based visa, employment-based second preference EB2 visa, employment-based green card visa, executive order, executive order 14012, Restoring Faith in Our Legal Immigration Systems and Strengthening Integration and Inclusion Efforts for New Americans, EB2 visa requirements, President Biden, STEM, science technology engineering math, advanced degree professionals, exceptional ability, permanent labor certification, Form I40, Immigrant Petition for Alien Worker, Volume 6 Policy Manual, 2022 Guidance

The image above is a link to our two-page download about the three-prong analytical framework used by adjudicators as guidance in evaluating EB2 NIW petitions.  Below the three prongs are defined, accompanied by guidance for adjudicators.

Prong I: The Person’s Proposed Endeavor Has Both Substantial Merit and National Importance

Dhanasar Guidance: In determining whether the proposed endeavor has national importance, the USCIS considers its potential prospective impact. An undertaking may have national importance for example, because it has national or even global implications within a particular field, such as those resulting from certain improved manufacturing processes or medical advances. But they do not evaluate prospective impact solely in geographic terms. Instead, they look for broader implications. Even ventures and undertakings that have as their focus one geographic area of the United States may properly be considered to have national importance. In modifying this prong to assess “national importance” rather than “national in scope,” as used in NYSDOT, they seek to avoid overemphasis on the geographic breadth of the endeavor. An endeavor that has significant potential to employ US workers or has other substantial positive economic effects, particularly in an economically depressed area, for instance, may well be understood to have national importance.

Prong II:  The Person is Well-Positioned to Advance the Proposed Endeavor

Dhanasar Guidance:  The second prong shifts the focus from the proposed endeavor to the foreign national. To determine whether he or she is well positioned to advance the proposed endeavor, we consider factors including, but not limited to: the individual’s education, skills, knowledge and record of success in related or similar efforts; a model or plan for future activities; any progress towards achieving the proposed endeavor; and the interest of potential customers, users, investors, or other relevant entities or individuals.

The USCIS recognizes that forecasting feasibility or future success may present challenges to petitioners and USCIS officers, and that many innovations and entrepreneurial endeavors may ultimately fail, in whole or in part, despite an intelligent plan and competent execution.

They do not, therefore, require petitioners to demonstrate that their endeavors are more likely than not to ultimately succeed. But notwithstanding this inherent uncertainty, in order to merit a national interest waiver, petitioners must establish, by a preponderance of the evidence, that they are well positioned to advance the proposed endeavor.

Prong III:  It Would Be Beneficial to the United States to Waive the Job Offer and Thus the Permanent Labor Certification Requirements

Dhanasar Guidance: The third prong requires the petitioner to demonstrate that, on balance, it would be beneficial to the United States to waive the requirements of a job offer and thus of a labor certification. On the one hand, Congress clearly sought to further the national interest by requiring job offers and labor certifications to protect the domestic labor supply. On the other hand, by creating the national interest waiver, Congress recognized that in certain cases the benefits inherent in the labor certification process can be outweighed by
other factors that are also deemed to be in the national interest. Congress entrusted the Secretary to
balance these interests within the context of individual national interest waiver adjudications.

In performing this analysis, USCIS may evaluate factors such as: whether, in light of the nature of the foreign national’s qualifications or proposed endeavor, it would be impractical either for the foreign national to secure a job offer or for the petitioner to obtain a labor certification; whether, even assuming that other qualified US workers are available, the United States would still benefit from the foreign national’s contributions; and whether the national interest in the foreign national’s contributions is sufficiently urgent to warrant forgoing the labor certification process. The USCIS emphasizes that, in each case, the factor(s) considered must, taken together, indicate that on balance, it would be beneficial to the United States to waive the requirements of a job offer and thus of a labor certification.

Why Work With Us?

Our work is due diligent and well-accepted by the USCIS.  We create reasonable EB2 NIW Green Card Visa Business Plans that are among the best immigration business plans.  They also represent you, your investment and your business as vital entrants into the United States economy.  Our pricing is reasonable--beginning at $1,650--and our plans are exceptional.

If you have received an EB2 NIW Business Plan RFE, get in touch with us:  We are RFE experts.

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The Trouble With the VIBE

” To establish a “qualifying relationship,” the petitioner must show that it and the beneficiary's foreign employer are either the same employer, for example, a U.S. entity with a foreign branch office or, alternatively, related as a “parent and subsidiary” or as “affiliates.” -

PM-602-0155
L-1 Qualifying Relationships and Proxy Votes
December 29, 2017

VIBE is No Longer

The trouble with the VIBE, quite simply, is that it is no longer an available option for validating the coporate linkage between US companies and their foreign parent.  A VIBE certification became a de facto requirement for L1A and L1B applications and RFEs as well as many other types of visa applications.  It has been relied on for some time to establish this relationship.

While the Dun and Bradstreet system was cumbersome and difficult to navigate, it was a free option that satisfied USCIS requirements.  The medium for VIBE validation through D&B was iUpdate, a now defunct option for verifying the status of a company.  There are still options for doing this through D&B but they are costly.

It appears that the USCIS has yet to publish any information on this change or alternatives, so we will explore some options here.  We believe that we can offer our clients a viable option that will adquately establish the corporate linkage and will verify the status of the two entities.

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Contact us about our validation solution

The USCIS characterized the VIBE program as a Web-based tool designed to enhance USCIS’ adjudications of certain employment-based immigration petitions. VIBE uses commercially available data from an independent information provider (IIP) to validate basic information about  companies or organizations petitioning to employ certain alien workers. At that time, Dun and Bradstreet was the independent information provider for the VIBE program.

Why did adjudicators begin to use VIBE in the first place?  When adjudicating employment-based petitions, USCIS must primarily rely on paper documentation supplied by the petitioning company or organization to establish the petitioner’s eligibility for the requested classification. When petitioners’ paperwork does not sufficiently document the evidence required under the law, USCIS must issue a Request for Evidence ( Request for Evidence) for additional documentation, delaying final adjudication of the petition. The VIBE program was introduced to address some of these issues.

VIBE certification was also valuable because Dun and Bradstreet offered the option for users to update their company information within a few days.

PM-602-0155 L-1 Qualifying Relationships and Proxy Votes

PM-602-0155 This policy memorandum (PM) clarifies the 1982 precedent decision, Matter of Hughes, by instructing officers that proxy votes must be irrevocable from the time of filing the L-1 petition through adjudication to establish a qualifying relationship. The petitioner must file an amended petition if any changes of ownership and control of the organization occur after USCIS adjudicates the petition.

If a foreign employer would like to transfer an employee working abroad to a U.S. company as an L-1 beneficiary, a qualifying relationship must exist between the beneficiary’s foreign employer and the petitioner at the time of filing. To establish a “qualifying relationship,” the petitioner must show that it and the beneficiary's foreign employer are either the same employer, for example, a U.S. entity with a foreign branch office or, alternatively, related as a “parent and subsidiary” or as “affiliates.”

”Either the foreign or U.S. entity must own and control the other entity or both must be subsidiaries owned and controlled by the same parent entity or person.  In the context of this visa classification, ownership refers to the direct or indirect legal right of possession of the assets of an entity with full power and authority to control. Control means the direct or indirect legal right and authority to direct the establishment, management, and operations of an entity.

A qualifying relationship exists when the U.S. employer is an affiliate, parent, or subsidiary of the foreign firm, corporation, or other legal entity.

To establish a qualifying relationship under the statute and the regulations, the petitioner must show that the beneficiary's foreign employer and the proposed U.S. employer are the same employer (for example, a U.S. entity with a foreign office) or related as a parent and subsidiary or as affiliates.” -

Chapter 4 - Multinational Executive or Manager
B. Petitioner Requirements

VIBE and the Multinational Manager

Subsidiary and Parent
The term subsidiary means a firm, corporation, or other legal entity of which a parent owns, directly or indirectly:

  • More than half of the entity and controls the entity;
  • Half of the entity and controls the entity;
  • 50 percent of a 50-50 joint venture and has equal control and veto power over the entity; or
  • Less than half of the entity, but in fact controls the entity.

While the term parent is not directly defined by the regulations, it is understood to mean the owner of a subsidiary.

Affiliate
There are three types of qualifying affiliate relationships:

  • One of two subsidiaries, both of which are owned and controlled by the same parent entity or person;
  • One of two legal entities owned and controlled by the same group of people, each owning and controlling approximately the same share or proportion of each entity; and
  • A partnership that is organized outside the United States to provide accounting services, along with managerial or consulting services, and markets those services under an internationally recognized name, as part of an agreement with a worldwide coordinating organization (of which the U.S. entity is a member) that is owned and controlled by the member accounting firms, partnership, or similar entity organized outside the United States.

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Our VIBE Solution

It is still too early in the game to say with certainty that the USCIS will accept our solution for corporate linkage validation.  We do believe, however, that it is in acceptable form and relays enough information for adequate validation.  Dun and Bradstreet has not been eliminated from the equation, as their data is a substantial part of this resource.  While this is a subscription service for us, as always, we provide this (if the relationship can be established) as a free service to our clients.  It is also available to non-clients as a paid service.

VIBE's Replacement:  The UEI, Unique Entity Identifier

On April 4, 2022, the federal government stopped using the DUNS Number to uniquely identify entities. Now, entities doing business with the federal government use the Unique Entity ID created in SAM.gov. They no longer have to go to a third-party website to obtain their identifier. This transition allows the government to streamline the entity identification and validation process, making it easier and less burdensome for entities to do business with the federal government.

The primary drawback of the UEI system is that, while obtaining the UEI number is quite easy, the time it takes to establish the corporate linkage between the foreign parent and US entity may take two to four weeks or more.  If you have that amount of time before submitting your application, you should use this system since it is provided at no cost--just as VIBE iUpdate was before.  In order to establish corporate linkage, you may have to apply for UEIs for both the foreign and US companies.  There are instructions on the sam.gov website detailing how to do this.

APPLY FOR A UNIQUE ENTITY IDENTIFIER (UEI) HERE

Applying for a Unique Entity Identifier

The transition from the DUNS Number to the Unique Entity ID is a federal governmentwide initiative. The Office of Management and Budget (OMB) directed federal agencies to complete their system transitions to the Unique Entity ID no later than April 4, 2022. Agencies across the federal government have implemented changes.

Refer to the Guide to Getting a Unique Entity ID if you want to get a Unique Entity ID for your organization without having to complete an entity registration. If you only conduct certain types of transactions, such as reporting as a sub-awardee, you may not need to complete an entity registration. Your entity may only need a Unique Entity ID.

Corporate Linkage, As Defined by PM-602-0155

VIBE, Validation Instrument for Business Enterprises, SAM, Unique Entity Identifier, UEI, L1A, L1B, RFE, Dun and Bradstreet, USCIS, PM-602-0155, Matter of Hughes, SAM, GSA, Get a Unique Entity ID Video, DUNS, Guide to Getting a Unique Entity ID, OMB, 8 CFR 214.2, nonprecedent decisions, Appeal 19925600, Appeal 19727391, Immigration and Nationality ActAccording to the USCIS in PM-602-0155, when determining whether a qualifying relationship exists between the foreign employer and the petitioner, ownership and control are two of the factors that must be examined. Ownership means the legal right of possession with full power and authority to control. Control means the right and authority to direct the management and operations of the business entity.

Before defining the term “qualifying organization” in the regulations, the former Immigration and Naturalization Service (INS) addressed the necessary corporate relationship for intracompany transfers in precedent decisions. The INS addressed the joint venture situation in Matter of Hughes, which provided an extensive analysis of the meaning of affiliation for L-1 purposes. The INS Commissioner found that “[i]n order to be deemed affiliates, companies should be bound to one another by substantial, but not necessarily majority, ownership of shares,” but “[m]ore importantly, affiliation requires that the financial link between two entities involve control by one over the management of another.”

A parent is “a firm, corporation, or other legal entities which has subsidiaries.” 8 CFR 214.2(l)(1)(ii)(I). A subsidiary is “a firm, corporation, or other legal entity of which a parent owns, directly or indirectly, more than half of the entity and controls the entity; or owns, directly or indirectly, half of the entity and controls the entity; or owns, directly or indirectly, 50 percent of a 50-50 joint venture and has equal control and veto power over the entity; or owns, directly or indirectly, less than half of the entity, but in fact controls the entity.” 8 CFR 214.2(l)(1)(ii)(K).

An affiliate means “(1) one of two subsidiaries both of which are owned and controlled by the same parent or individual, or (2) one of two legal entities owned and controlled by the same group of individuals, each individual owning and controlling approximately the same share or proportion of each entity, or (3) in the case of a partnership that is organized in the United States to provide accounting services along with managerial and/or consulting services and that markets it accounting services under an internationally recognized name under an agreement with a worldwide coordinating organization that is owned and controlled by the member accounting firms, a partnership (or similar organization) that is organized outside the United States to provide accounting services shall be considered to be an affiliate of the United States partnership if it markets its accounting services under the same internationally recognized name under the agreement with the worldwide coordinating organization of which the United States partnership is also a member.” 8 CFR 214.2(l)(1)(ii)(L).

Our VIBE Solution

It is still too early in the game to say with certainty that the USCIS will accept our solution for corporate linkage validation.  We do believe, however, that it is in acceptable form and relays enough information for adequate validation.  Dun and Bradstreet has not been eliminated from the equation, as their data is a substantial part of this resource.  While this is a subscription service for us, as always, we provide this (if the relationship can be established) as a free service to our clients.  It is also available to non-clients as a paid service.

Expected Content of New Validation Documentation

It is anticipated that this system will produce the same high-quality validation provided by the VIBE system:

Business activities, such as type of business (North American Industry
Classification System code), trade payment information, and status (active or
inactive).
•Financial standing, including sales volume and credit standing.
•Number of employees, both on-site and globally.
•Relationships with other entities, including foreign affiliates.
•Type of office. (Examples include single entities, branches, subsidiaries and
headquarters.)
•Type of legal entity. For example, LLC, partnership or corporation.
•Company executives.
•Date of establishment as a business entity.
•Current physical address.

A New Alternative to the VIBE

We are leasing a database that contains information about businesses worldwide.  If a link has been established between the Foreign Parent Entity and US Entity through publicly available documentation, it should be in this database. 

Are you are in the process of setting up your business in the US for the purpose of a L1A/L1B intracompany transfer?  If so, we strongly recommend you consider the requirement for establishing the qualifying relationship as you document your business.  Consider having the foreign parent set up the entity in the State so that the relationship is established at the outset.  Be sure to put the linkage in the State and local documents you file so that it is discoverable. 

The content of our validations will vary depending on the amount of information available about the Company queried.  For those with sufficient data, however, we expect the information shown at left (at least) to be in the validations.  There may be more than one document--and more than one source--describing the entities individually and as connected entities.

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Is the UEI Mandatory?

Is getting a Unique Entity Identifier mandatory?  No, it is not.  But it is one, no-cost way to fulfill the requirements previously met by a VIBE certificate.  As we said, we also provide our clients with our UEI/VIBE alternative at no charge.  It is prudent to choose one of the new options--one less reason for the USCIS to issue an RFE.

Non-Precedent Decisions on Qualifying Relationships

June 13, 2022
In Re: 19925600
Appeal of Nebraska Service Center Decision
Form 1-140, Petition for Multinational Managers or Executives

The Petitioner, describing itself as an operator of a franchised restaurant location, seeks to permanently employ the Beneficiary as its chief executive officer (CEO) in the United States under the first preference immigrant classification for multinational executives or managers. Immigration and Nationality Act (the Act) section 203(b)(l)(C), 8 U.S.C. § 1153(b)(l)(C).

The Director of the Nebraska Service Center denied the petition, concluding the Petitioner did not establish that: 1) it had a qualifying relationship with the Beneficiary's foreign employer, 2) it was doing business as defined by the regulations, 3) the foreign employer was doing business abroad, 4) it had the ability to pay the Beneficiary's proffered wage, 5) the Beneficiary would be employed in a managerial or executive capacity in the United States, and 6) the Beneficiary was employed abroad in a managerial or executive capacity. On appeal, the Petitioner contends the Director erred as to each ground for denial and asserts the Beneficiary is eligible for the benefit sought.

Read More Here...


March 18, 2022

In Re: 19727391
Appeal of Texas Service Center Decision
Form 1-129, Petition for L-lA Manager or Executive

The Petitioner, a manufacturer of personal transporters, seeks to continue the Beneficiary's temporary employment as its Senior Director of Product Management and Marketing under the L-lA nonimmigrant classification for intracompany transferees. Section 101(a)(15)(L) of the Immigration and Nationality Act (the Act), 8 U.S.C. § 1101(a)(15)(L).

The L-lA classification allows a corporation or other legal entity (including its affiliate or subsidiary) to transfer a qualifying foreign employee to the United States to work temporarily in a managerial or executive capacity.

The Director of the Texas Service Center denied the petition, concluding that the Petitioner did not establish, as required, that it has a qualifying relationship with the Beneficiary's foreign employer. The matter is now before us on appeal.

Read More Here...

Our VIBE Solution

It is still too early in the game to say with certainty that the USCIS will accept our solution for corporate linkage validation.  We do believe, however, that it is in acceptable form and relays enough information for adequate validation.  Dun and Bradstreet has not been eliminated from the equation, as their data is a substantial part of this resource.  While this is a subscription service for us, as always, we provide this (if the relationship can be established) as a free service to our clients.  It is also available to non-clients as a paid service.

Why Work With Us?

Our work is due diligent and well-accepted by the USCIS.  We create reasonable Immigration Visa Business Plans that are among the best visa business plans available.  We have included corporate linkage validation information in our plans for a very long time and it has definitely increased plan acceptance.  We have now committed ourselves to finding a VIBE alternative because we know that this verification will still be required--even though VIBE is no longer offered.  Our plans represent you, your investment and your business as vital entrants into the United States economy.  Our pricing is reasonable and begins at $1,500.

If you have received an RFE or NOID, get in touch with us:  We are RFE experts.

GET IN TOUCH

E2 Business Plan: How to Validate the Investment

A Substantial Investment in an E2 Business Plan

An E2 business plan is an essential component of the visa application because it demonstrates, among other things, the project meets the requirements that validate a qualified E2 investment:

  • Investment
  • Substantial Investment
  • Marginal Enterprise
  • Bona Fide Enterprise

Our E-2 visa immigration business plans effectively validate your investment according to current requirements.

Validation of an investment that is legal, viable and substantial is an integral part of the E-2 application.

E2, E2 visa plans, Treaty Investor, US treaty of commerce and navigation, at risk funds, 8 CFR 214.2(e)(12), 8 CFR 214.2(e)(3)(ii), 8 CFR 214.2(e)(15), 8 CFR 214.2(e)(17), 8 CFR 214.2(e)(18), Form I-129, Form I-539, Form I-765, substantial capital, bona fide enterprise, marginal enterprises, nonimmigrant treaty investor, Southwest Business Services, LLC, Immigration Plan Experts

In This Post

Investment, 8 CFR 214.2(e)(12)
Substantial Amount of Capital, 8 CFR 214.2(e)(14)
Proportionality Test
Marginal Enterprise,
8 CFR 214.2(e)(15)
Bona Fide Enterprise, 8 CFR 214.2(e)(13)
What Are the Adjudicator Guidelines?
Items to Validate in a Compliant E2 Business Plan

 Investment, 8 CFR 214.2(e)(12)

An investment is the treaty investor's placing of capital, including funds and other assets (which have not been obtained, directly or indirectly, through criminal activity), at risk in the commercial sense with the objective of generating a profit. The treaty investor must be in possession of and have control over the capital invested or being invested. The capital must be subject to partial or total loss if investment fortunes reverse. Such investment capital must be the investor's unsecured personal business capital or capital secured by personal assets. Capital in the process of being invested or that has been invested must be irrevocably committed to the enterprise. The alien has the burden of establishing such irrevocable commitment. The alien may use any legal mechanism available, such as the placement of invested funds in escrow pending admission in, or approval of, E classification, that would not only irrevocably commit funds to the enterprise, but might also extend personal liability protection to the treaty investor in the event the application for E classification is denied.

Investment in the E2 Business Plan

Investment in the enterprise is established in the E2 Business Plan by several means.  The source and amount of the invested funds are put in a table that states the amount; and this is validated by inclusion of images of the actual investment.  The latter shows clearly the path of the invested funds and where they are presently.  The importance of showing where the funds are at the time of application is that it can help demonstrate that the petitioner has irrevocably committed those funds to the project.  As long as it is clear that the investor has committed unsecured funds or personal assets, the risk of loss is established. 

While showing the funds in escrow is an option, the petitioner may have already started to use the funds so the path of funds through a bank account is also acceptable.  The investor's intention to operate profitably is demonstrated in the business plan's five-year financials and the validation of a local market that will support the new enterprise.

Matter of Walsh and Pollard 

This decision followed the Department of State’s guidelines on E-2 visa classification. The most important part related to this discussion is that when applying the substantiality test, one must focus on the nature of the business. Thus, as in this case, sometimes an investment of only a small amount of money might meet the requirement.  This download contains the full text of the Matter of Walsh and Pollard decision.

What Is A Substantial Investment?

Substantial Amount of Capital, 8 CFR 214.2(e)(14)

A substantial amount of capital constitutes an amount which is:

(i) Substantial in relationship to the total cost of either purchasing an established enterprise or creating the type of enterprise under consideration;

(ii) Sufficient to ensure the treaty investor's financial commitment to the successful operation of the enterprise; and

(iii) Of a magnitude to support the likelihood that the treaty investor will successfully develop and direct the enterprise. Generally, the lower the cost of the enterprise, the higher, proportionately, the investment must be to be considered a substantial amount of capital.

 

The definition of a substantial investment is well-established:  It is the interpretation of it that varies depending on the interpreter.

The fact that there are no absolute guidelines means that the question, How much is enough?, is a difficult one to answer for the E2 application.

Some applicants and immigration attorneys have said that they received approvals for petitioners who were investing no more than $10,000.  While that might satisfy the proportionality test in some instances, it is unlikely that it will be considered a substantial investment as a matter of course.

An investment validated in an E2 Business Plan on the basis of the proportionality test at least has the advantage of using the same interpretation of substantial investment that is used by adjudicators.  That is why we use it as one of our validation methods.

Proportionality Test

What Is the Proportionality Test?

Under the Matter of Walsh and Pollard, 20 I. & N. Dec. 60, 63 (BIA 1988), the Board of Immigration Appeals (BIA) held that substantial investment of $15,000 was sufficient for the business that the investors sought to start.  Arguably, this precedent decision was the origin of the proportionality test, which is described in the section.

The proportionality test determines whether an investment is substantial by weighing the amount of qualifying funds invested against the cost of the business.  If the two figures are the same, then the investor has invested 100 percent of the needed funds in the business; such an investment is substantial.  Most cases involve lesser percentages.  The proportionality test can best be understood as a sort of inverted sliding scale.  The lower the cost of the business the higher a percentage of investment is required.  On the other hand, a highly expensive business would require a lower percentage of qualifying investment.  There are no bright line percentages that exist for an investment to be considered substantial.  Thus, investments constituting 100 percent of the total cost would normally qualify for a business requiring a startup cost of $100,000, for example.  At the other extreme, an investment of $10 million in a $100 million business may be considered substantial, based on the sheer magnitude of the investment itself.

(1)  See 9 FAM 402.9-6(B) for guidance regarding qualifying funds.

(2)  The cost of an established business is generally its purchase price, which is normally considered to be the fair market value.

(3)  The cost of a newly created business is the actual cost needed to establish such a business to the point of being operational.  The actual cost can usually be determined by combining the cost of the assets the investor has already purchased with the cost estimates for the procurement of additional assets needed to run the business.  For example, cost may be established through invoices or contracts for substantial purchases of equipment and inventory; appraisals of the market value of land, buildings, equipment, and machinery; accounting audits; and records submissions to various governmental authorities.

(4)  The value (cost) of the business is clearly dependent on the nature of the enterprise.  Any manufacturing business, such as an automobile manufacturer, might easily cost many millions of dollars to either purchase or establish and operate the business.  At the extreme opposite pole, the cost to purchase an ongoing commercial enterprise or to establish a service business, such as a consulting firm, may be relatively low.  If all the other requirements for E-2 status are met (see 9 FAM 402.9-6), the cost of the business per se is not independently relevant or determinative of qualification for E-2 status.

Is the Enterprise Marginal?

There are various ways to show that the business is more than marginal, in the sense of only providing a livelihood for the applicant. If the business does not yet generate sufficient income necessary to support the applicant and family, then one can look to the economic impact of the business. The enterprise must have the present or future capacity to generate more than a minimal living for the investor and family in order to make a significant economic contribution. 

Marginal Enterprise, 8 CFR 214.2(e)(15)

A marginal enterprise is an enterprise that does not have the present or future capacity to generate more than enough income to provide a minimal living for the treaty investor and his or her family. An enterprise that does not have the capacity to generate such income, but that has a present or future capacity to make a significant economic contribution is not a marginal enterprise. The projected future income-generating capacity should generally be realizable within 5 years from the date the alien commences the normal business activity of the enterprise.

Bona Fide Enterprise, 8 CFR 214.2(e)(13)

The enterprise must be a real, active, and operating commercial or entrepreneurial undertaking which produces services or goods for profit. The enterprise must meet applicable legal requirements for doing business in the particular jurisdiction in the United States.

Bona Fide Enterprise

A treaty investor is required to establish that the investment enterprise is a real, active, and operating commercial or entrepreneurial undertaking which produces services or goods for profit. The enterprise is required to meet applicable legal requirements for doing business in the particular jurisdiction in the United States.

Items to Validate in a Compliant E2 Business Plan


E2, E2 visa, E2 treaty investor, E2 business plan, E2 nonimmigrant, nonimmigrant visa, funds at risk, substantial investment, marginal enterprise, bona fide enterprise, 8 CFR 214.2(e)(15), immigration business plans, USCIS, DHS, United States Citizenship and Immigration Services, Department of Homeland Security, E2 visa countries, reciprocity, E2 RFE responsesOur E2 Business Plans, like ones created by other vendors in this space, contain the requisite sections from the Executive Summary to the Five-Year Financials.  It is at that point that the similarity ends.

Listed below is a point-by-point analysis of some of the ways in which we validate specifically the E2 investment requirements in each plan.  Several of these methods are proprietary and are recognized as such by the USCIS.  Do not be misled by our reasonable pricing (see below):  Our plans are the most compliant and reasonable--an absolute requirement for acceptance--of those offered.

Substantial Investment
Validation:  When we create E2 business plans, we face the same questions about validating the investment as the adjudicators face in evaluating it. Our job is to establish that the investment meets the litmus test(s) for substantiality. The basis for our validation is the business and the investment amount. The proportionality test is central to this validation but accommodates other ways of looking at the investment. In theory, the lower the cost of the enterprise, the higher, proportionately, the investment should be to fulfill this requirement.
Means: A section on what the substantiality is for the investment and the basis for determining substantiality. This is a separate section based on our proprietary format.

Marginal Enterprise
Validation: This, like substantial investment, can be a gray area that is difficult to validate. While the usual standard for determining whether or not a business is marginal is its capacity to generate revenue. But there are mitigating circumstances. The impact of your business on the community is also factored into this evaluation.
Means: Economic impact, five-year financial projections, industry standard revenue, COVID and post-COVID analysis.

Bona Fide Enterprise
Validation: No one wants to assume that funds set aside for investment would be used otherwise. Nonetheless, the burden of proof rests with the investor to show that their business exists, that it is not a concept, a shadow or a shell.
Means: Standard documents such as leases, articles of incorporation, state or local business licenses, etc., are all used to validate the Company's existence.

Investment Impact
Validation: While we could attempt to validate your investment in the context of the national economy, usually this would represent an impact so small as to be statistically insignificant. Unless your enterprise is a multimillion dollar one with a broad target market, it is unlikely that it will have a national impact. It will, however, have a local impact on the community. You are providing jobs, enabling increased spending, expanding the tax base, etc. We validate this very carefully and present every impact that your business represents. This validation has become an unwritten requirement for E2 Business Plans and we have a proprietary method for demonstrating the economic impact of your investment.
Means: Demographic profiles, consumer spending, tax base analysis, increase in local GDP, increase in hiring.

COVID and Post-COVID Analysis:
Validation: The pandemic has had a profound and undeniable impact on our economy. It has also resulted in a paradigm shift in the way we work and live. To ignore it would result in an analysis that might not be reasonable. One of our clients, for example, had a business whose operating structure that would involve both remote and in-office employees as well as client interactions that were atypical. We laid out very carefully why the operation had been designed that way. This affected their financial projections, too. The approach was thorough and reasonable, accepted by the USCIS.
Means: Five-year financials, analysis of business structure, staffing, market validation, etc.

 

What Are the Adjudicator Guidelines?

9 FAM 402.9

TREATY TRADERS, INVESTORS, AND SPECIALTY OCCUPATIONS - E VISAS

(CT:VISA-1338; 08-10-2021)
(Office of Origin: CA/VO)

This is a noninclusive list of guidelines regarding E-2 applications.  They are described here because they should be part of the due diligence for every E2 Business Plan.  To avoid confusion, you has been changed to adjudicator in the narrative since you refers to the adjudicator in the original document.

The purpose of the requirement is to ensure to a reasonable extent that the business invested in is not speculative but is, or soon will be, a successful enterprise.  The rules regarding the amount of funds committed to the commercial enterprise and the character of the funds, primarily personal or loans based on personal collateral, are intended to weed out risky undertakings and ensure that the investor is unquestionably committed to the success of the business.  Consequently, the adjudicator must view the proportionate amount of funds invested, as evidenced by the proportionality test, considering the nature of the business and the projected success of the business.

Interpretations of “Substantial”:  No set dollar figure constitutes a minimum amount of investment to be considered "substantial" for E-2 visa purposes.  Investment of a substantial amount of capital for E-2 visa purposes constitutes an amount that is:

  • Substantial in a proportional sense, as determined through the application of the proportionality test;
  • Sufficient to ensure the treaty investor's financial commitment to the successful operation of the enterprise; and
  • Of a magnitude to support the likelihood that the treaty investor will successfully develop and direct the enterprise.

Investor's Commitment:  The adjudicator may request whatever documentation is needed to properly assess the nature and extent of commitment to a business venture.  Such evidence may include letters from chambers of commerce or statistics from trade associations.  Unverified and unaudited financial statements based exclusively on information supplied by an applicant normally are insufficient to establish the nature and status of an enterprise.

Enterprise Must Be More Than Marginal:  A marginal enterprise is an enterprise that does not have the present or future capacity to generate enough income to provide more than a minimal living for the treaty investor and his or her family. An enterprise that does not have the capacity to generate such income but that has a present or future capacity to make a significant economic contribution is not a marginal enterprise. The projected future capacity should generally be realizable within five years from the date the applicant commences normal business activity of the enterprise.

Commercial Enterprise Must Be Real and Active:  The enterprise must be a real and active commercial or entrepreneurial undertaking, producing some service or commodity.  If the investment relates to a new enterprise, then the adjudicator must be convinced that it will be a real and active commercial or entrepreneurial undertaking that will produce some service or commodity if the visa is issued.  It cannot be a paper organization or an idle speculative investment held for potential appreciation in value, such as undeveloped land or stocks held by an investor without the intent to direct the enterprise.  The investment must be a commercial enterprise; thus it must be for profit, eliminating non-profit organizations from consideration.

Source, Possession, and Control of Funds: The source of the investment may include capital assets or funds from savings, gifts, inheritance, contest winnings, loans collateralized by the applicant’s own personal assets (see paragraph c below) or other legitimate sources. The source of the funds need not be outside the United States. The source of the investment must not, however, be the result of illicit activities. The adjudicator may request whatever documentation is needed to properly assess the source of the funds. The applicant must demonstrate possession and control of the invested capital assets and funds. Inheritance of a business itself does not constitute an investment.

Investment Connotes Risk: The concept of investment connotes the placing of funds or other capital assets at risk, in the commercial sense, in the hope of generating a financial return. E-2 investor status must not, therefore, be extended to non-profit organizations. See 9 FAM 402.9-6(D). If the funds are not subject to partial or total loss if business fortunes reverse, then it is not an “investment” in the sense intended by INA 101(a)(15)(E)(ii). If the funds’ availability arises from indebtedness, these criteria must be followed:

  • Indebtedness such as mortgage debt or commercial loans secured by the assets of the enterprise cannot count toward the investment, as there is no requisite element of risk. For example, if the business in which the applicant is investing is used as collateral, funds from the resulting loan or mortgage are not at risk, even if some personal assets are also used as collateral.
  • Only indebtedness collateralized by the applicant’s own personal assets, such as a second mortgage on a home or unsecured loan, such as a loan on the applicant’s personal signature may be included, since the applicant risks the funds in the event of business failure.

Funds Must be Irrevocably Committed:  To be “in the process of investing” for E-2 purposes, the funds or assets to be invested must be committed to the investment, and the commitment must be real and irrevocable. The purchase of a business that is conditioned upon the issuance of the E-2 visa may still qualify as an irrevocable investment. Despite the condition, the purchase would constitute a solid commitment if the assets to be used are held in escrow for release or transfer once the condition is met. The point of the example is that to be in the process of investing the investor must have entered into an agreement and have committed funds.

Why Work With Us?

Our work is due diligent and well-accepted by the USCIS.  We create reasonable E2 Business Plans that are among the best immigration business plans.  They also represent you, your investment and your business as vital entrants into the United States economy.  Our pricing is reasonable and begins at $1,300 prepaid.

If you have received an E2 Business Plan RFE, get in touch with us:  We are RFE experts.

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