Electronic Signature Lawfulness for Home Loan in United States - Simplifying Document Signing Process

How to eSign a document: electronic signature lawfulness for Home Loan in United States

- Hey, everyone. If you're considering an E2 investor visa, you might be wondering, can I use a loan towards my E2 investment? And if I do use a loan, will the amount of that loan be considered toward my overall investment amount? Well, in this video I'm gonna answer those questions and we're gonna start off by taking a look at the actual regulation. So I think you're gonna find this information very interesting. So let's get started. (upbeat music) As you can see here, it starts off by saying concept of investment connotes placing of funds or other capital assets at risk in the commercial sense in the hope of generating a financial return. E2 investor status must not, therefore, be extended to nonprofit organizations. 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 the regulations. If the funds' availability arises from indebtedness, these criteria must be followed. And the first point mentions 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. And the second point mentions 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. So as you can see from what we just went over, the answer to whether a loan can be used toward your overall investment amount is it depends. If the loan is secured by the business or by the assets of the business, then those funds are not going to be considered toward part of your overall investment amount. However, if the funds are secured by you personally or are unsecured, then those funds can be included as part of your overall investment amount. So now I would like to present two examples to help illustrate this point. Example number one, let's go over a case where there is a $100,000 business and the person has $50,000 of cash to invest towards that business, but needs an additional $50,000. So the person has $50,000 cash. And for purposes of this example, let's assume that he owns a home personally and he has $50,000 of equity in his personal home, and he goes to the bank and he arranges a loan to be able to pull out that equity from his home and receive those funds personally. In this example, he has $50,000 cash and he has a $50,000 loan against his personal home. If he takes the total of those funds that $100,000 and invests it to purchase that $100,000 business, the full $100,000 amount will be considered toward his investment amount because in that example, the loan that he received was secured by his personal assets by his home. Now, let's go over a second example. For this example, let's also assume that there's a business that costs $100,000 and the individual has $50,000 cash but he or she does not have a personal asset, such as a home to pull out equity from. So instead, let's assume that the investor goes to the bank to get a loan for $50,000 and the bank issues that $50,000 loan but requires that the investor use the business itself as collateral for the loan. So again, in this example, we have $100,000 business. The investor has $50,000 cash and the investor gets a loan from the bank for $50,000 and that loan is secured by the business itself. In this example, only $50,000 would be considered invested. The $50,000 loan that's issued by the bank would not be considered part of the overall investment amount because it is secured by the business. This is important for many reasons. The first reason why this is very important is because the amount of your investment is very important toward whether or not your investment is going to be considered substantial. That's the first reason why this is very important. The second reason why this is very important is because of proportionality. To determine whether an investment is substantial, the immigration officer that's reviewing the case will consider the proportionality of the investment versus the overall cost of the business. So in example one, $100,000 is considered invested because again, in example one, there was $50,000 cash and $50,000 loan issued to the investor with the home as security. So that entire $100,000 amount was considered part of the investment and the business's cost was $100,000. So in this example, the investor has a higher investment amount of $100,000 and their investment amount has 100% proportionality towards the overall cost of the business. Again, proportionality is an important consideration that the immigration officer will consider to determine whether the investment is substantial. Now, again, let's contrast that from example two where only $50,000 is considered invested because the other $50,000 is a loan that is secured by the business. So now the issue with this example is that, first of all, the investment amount is much lower. The investment amount is only half of the investment in the first example. And again, the second issue is with respect to proportionality. In example number two, there's only 50% proportionality between the amount invested and the overall cost of the business. And because proportionality is an important factor as to what is considered substantial, the example of case number two is weaker than case number one. Example number one represents a stronger case than example number two, both because of the overall investment amount and because of the proportionality towards the overall cost of the business. So again, in this video, we went over whether loans qualify as part of your investment for E2 visa purposes and we determined clearly that loans that are secured by the business do not qualify. However, personal loans and unsecured loans can qualify. And we talked about why this is so important, both because of the overall investment amount and because of proportionality. I hope you found this video very informative. Hope you learned a lot from this video. If you like this video, let me know in the comments and give us a big thumbs up so that YouTube knows to share this information with more people. Thank you so much for tuning in and I will see you on the next video.