Foreign Buyers’ Guide to Buying a U.S. Small Business: Visas, Financing & Deal Tips
Why start from scratch when you can step into growth? For foreign entrepreneurs, buying a U.S. small business provides an immigration pathway and immediate income, complete with customers, employees, and systems already in place.
Franchises add another layer of appeal. It combines visa compatibility with established brand recognition. Unlike launching a startup, acquiring an existing business can streamline the visa application process and provide immediate cash flow.
Buying a Business and Visas
For foreign investors, securing the right visa is often the first step in purchasing a U.S. business. Your options depend on factors like your nationality, your role in the business, and the amount you plan to invest.
The E-2 visa is one of the most common pathways. It requires that you come from a treaty country and take an active role in managing the business. Buying an existing business or franchise is a popular way to qualify. The amount invested must be “substantial,” but there is no fixed minimum.
Other pathways include:
- EB-5 Investor Visa
- Invest $800,000-$1,050,000 (depending on location)
- Must create or preserve 10 or more full-time U.S. jobs
- Leads to a green card and long-term residency
- L-1 Visa (Intracompany Transfer)
- O-1 Visa
- For individuals with extraordinary ability in business, science, or similar fields
- Niche, but can work in the right circumstances
The E-1 Treaty Trader visa may apply if your business is built on substantial trade between your country and the U.S., though it’s less common.
Financing for Foreign Buyers
U.S. citizens and permanent residents can apply for SBA loans, but most foreign nationals do not qualify. These loans typically require legal permanent residency or a strong U.S. co-signer, making them inaccessible for many buyers with entrepreneur visas or pending applications to get bank financing.
Instead, most foreign entrepreneurs use alternative lending to buy a business. Seller financing is common in small business transactions, where the seller carries part of the loan and is repaid over time.
Partner structures can also work by pairing a foreign buyer with a U.S. citizen who meets SBA eligibility criteria. Traditional commercial loans are available in limited cases, but lenders typically require a proven business plan.
For larger deals, especially those tied to the EB-5 visa, financing often combines personal capital with outside investment.
For Buyers
Assembling the right team is the first step. You’ll likely need:
- An immigration attorney to advise on visa categories and filing the immigrant petition
- A buy-side business broker to identify opportunities with investor visa options
- A CPA or tax advisor to review financials and structure investment funds
- A financing partner if SBA loans aren’t available
When searching for a new business to buy, look beyond revenue. Sellers’ operations, workforce, and staffing all affect whether the business qualifies for certain investor visa options.
Both independent businesses and franchises can be viable options. Franchises, in particular, are often E-2 friendly. They offer structured management roles, brand recognition, and a clear investment framework, factors that can support visa approval.
If you choose to pursue a franchise, your offer and due diligence should cover:
- Leases, contracts, and workforce obligations
- Escrow or holdbacks to manage risks if there are delays with your L-1 visa or immigrant petition
- A clear disclaimer that visa approval is not guaranteed
For Sellers: Marketing to Foreign Buyers
When selling to foreign entrepreneurs, the deal must often satisfy both business and immigration requirements. Clean financials, written SOPs, and a clear training plan help demonstrate that the buyer will take on an active management role, a key point for E-2 visa categories.
An organizational chart and an immigration-friendly transition plan provide USCIS with confidence in business continuity, especially when full-time jobs are tied to the buyer’s investor visa application.
Sellers should also recognize that processing time for a buyer’s visa can delay closing, so contracts may include escrow or holdbacks to manage timing risk.
Working with a business broker experienced in cross-border transactions and visa options can expand your pool of qualified buyers.
FAQs
Can a foreigner buy a business in the U.S. without a visa?
Yes, but ownership alone does not grant the right to live or work in the United States. If the buyer wants to actively manage daily operations or relocate, they will need an appropriate visa, such as the E-2 or L-1. Otherwise, they must appoint local management or hire staff to run the business on their behalf.
Can I buy a franchise for E-2?
Yes, many investors use a franchise purchase to qualify for the E-2, as long as the capital requirement is met. Immigration services will review the application form, supporting documents, and business plan to ensure they meet job creation and active management requirements.
Can foreign buyers get SBA loans?
Generally, no. Foreign buyers typically can’t get SBA loans unless they hold legal residency or have a clear path to U.S. citizenship. Most use personal funds, outside lenders, or private capital investment to cover the required investment amount.
How long does immigration add to closing timelines?
Immigration services can add several months to closing, depending on the visa type and processing of supporting documents. Buyers pursuing a new commercial enterprise or startup business in a targeted employment area should expect extended timelines compared to domestic transactions.
What documents should sellers prepare for foreign buyers?
Sellers should gather tax returns, financial statements, corporate records, and proof of a U.S. bank account. Immigration attorneys often recommend including clear ownership history and compliance paperwork to smooth the buyer’s application form and job offer review.
To learn more about buying a business, download BizBuySell’s free guide.