When you think about starting a business in the U.S. under an E-2 visa, you might assume that raising millions of dollars from investors would guarantee approval. Surprisingly, that is not the case.
The reason is that the E-2 visa law was not created by entrepreneurs or businesspeople. It was written by Congress with a specific goal: to attract foreign investment that creates jobs for Americans.
This distinction is critical. Immigration rules do not always align with business realities. In fact, there have been cases where a business plan backed by millions of dollars was denied, while an investment of just over $12,000 was approved.
So, what really matters when applying for an E-2 visa? The answer lies in two critical components: substantial investment and marginal enterprise.
What Does Substantial Investment Really Mean?
Substantial investment does not mean there is a fixed minimum dollar amount. Instead, immigration officials want to see that your investment is:
Proportional. Your contribution makes sense compared to the overall cost of the business.
Committed. The amount shows that you are financially serious about the company’s success.
Sufficient. It gives your business a realistic chance of becoming profitable.
This is evaluated using what is called the proportionality test. Think of it as a sliding scale:
A 10 percent investment in a $1 billion company ($10 million) may pass.
A 10 percent investment in a $100,000 company ($10,000) likely will not.
The point is not how much you spend, but whether the amount is meaningful enough to prove your commitment and support the growth of the business.
What Is a Marginal Enterprise?
The second requirement is to show that your business is not a marginal enterprise.
A marginal enterprise is a business that cannot generate enough income to support the investor and their family or contribute significantly to the U.S. economy.
To meet this standard, your business should:
Provide more than just a minimal living for you and your family.
Create U.S. jobs, either directly or indirectly.
Show potential for long-term growth.
There is no exact number of employees required. However, showing job creation, especially for U.S. workers, strengthens your case significantly.
Key Takeaways for Entrepreneurs
The U.S. is not only interested in your investment, but also in the economic impact of your business. That is why the focus is on substantial investment and avoiding marginal enterprises. Meeting these two factors demonstrates that your business will:
Create jobs.
Contribute to the economy.
Support you and your family without being a burden on taxpayers.
At Visa Business Plans, we have helped thousands of entrepreneurs navigate the complexities of the E-2 visa. We understand there is no one-size-fits-all approach. Every business plan must be customized to highlight the proportionality of the investment, job creation potential, and long-term sustainability.
When presented properly, even relatively small investments can succeed. What matters most is how clearly your plan demonstrates the value your business will bring to the U.S. economy.
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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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