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Can I Use a Loan as Part of the E-2 Investment? Yes, But…

The E-2 visa is a popular option for foreign investors looking to establish or acquire a business in the United States. It offers the opportunity to live and work in the U.S. based on a substantial investment in an enterprise. While investing personal funds is a common practice, some applicants wonder if they can use a loan as part of their E-2 investment. The short answer is "yes," but there are important criteria to consider.

Using a Loan for Your E-2 Investment

The E-2 visa requires a substantial investment to qualify, but the source of these funds can vary. It's essential to understand that not all loans can be considered as part of your investment, and the ones that must meet specific criteria. Here's a closer look at the key factors to consider:

Indebtedness Can Not Be Collateralized by the Assets of the E-2 Entity

One crucial factor in using a loan as part of your E-2 investment is the nature of the indebtedness. Loans or debts that are collateralized by the assets of the enterprise itself, such as mortgage debt on the business property or commercial loans secured by business assets, generally cannot count toward the investment. This is because there is no requisite element of risk involved.

For example, if the business you are investing in is used as collateral for a loan or mortgage, the funds obtained from this type of loan are not considered "at risk," even if you also use some of your personal assets as collateral.

Only Indebtedness Collateralized by Personal Assets

The E-2 visa regulations allow for the inclusion of indebtedness that is collateralized by the applicant's personal assets. This includes:

  • Second Mortgage on a Home: If you use a second mortgage on your personal residence to secure a loan for your E-2 investment, the funds from this loan are considered "at risk." In the event of business failure, you risk losing your personal assets, making it an E-2 investment.

  • Unsecured Loan: An unsecured loan, such as a loan obtained based on your personal signature and creditworthiness, can also be included as part of your E-2 investment. Since this type of loan doesn't involve business assets as collateral, the funds are at risk in case of business failure.

Meeting the Risk Requirement

The E-2 visa is all about ensuring that your investment is "at risk," meaning that you have a genuine financial stake in the success of the business. Loans that are secured by your personal assets, such as a second mortgage on your home or unsecured loans, meet this risk requirement, as they expose your personal assets to potential losses in the event of business failure.

In conclusion, using a loan as part of your E-2 investment is possible, but it must meet specific criteria, especially the requirement that it involves your personal assets and places them at risk. It's essential to consult with immigration experts and legal professionals to ensure that your investment strategy complies with E-2 visa regulations and maximizes your chances of a successful visa application.

If you're considering an E-2 visa application and have questions about using a loan as part of your investment, we recommend seeking guidance from experienced professionals in the field of business immigration. They can provide you with tailored advice and assistance to navigate the complexities of the E-2 visa application process. Remember, the key is to meet the "at risk" criterion and ensure that your investment is substantial and credible.


The information provided in this blog is intended solely for informational purposes. While we strive to offer accurate and up-to-date content, it should not be considered legal advice. Immigration laws and regulations are subject to change, and individual circumstances can vary widely. For personalized guidance and legal advice regarding your specific immigration situation, we strongly recommend consulting with a qualified immigration attorney who can provide you with tailored assistance and ensure compliance with current laws and regulations.


Visa Business Plans is led by Marco Scanu, a certified coach from the University of Miami with a globally-based practice coaching Fortune 1000 company executives, entrepreneurs, as well as professionals in four different continents. Mr. Scanu advises clients on turnaround strategies and crisis management.

Mr. Scanu received a bachelor’s degree in Business Administration (Cum Laude) from the University of Florida and an MBA in Management from Bocconi University in Milan, Italy. Mr. Scanu was also a Visiting Scholar at Michigan State University under the prestigious H. Humphrey Fellowship (Fulbright program) with a focus on Entrepreneurship, Venture Capital, and high-growth enterprises.

At present, Mr. Scanu is the managing partner and CEO at Visa Business Plans, a Miami-based boutique consulting firm providing attorneys and investors with business planning services in the areas of U.S. and Canadian immigration, SBA loans, and others.


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