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When foreign investors apply for an E-2 visa, one of the most common and devastating outcomes is denial. But why does this happen? While there are several reasons, one of the top causes is an investment that is too low or one that does not meet visa adjudication standards.
What Does “Substantial Investment” Really Mean?
To qualify for an E-2 visa, the investor must make a substantial investment in a U.S. business. But here’s the catch: U.S. immigration law does not define a specific minimum dollar amount. Instead, officers evaluate whether the investment is substantial by applying what is called the “proportionality test.”
If a business requires $100,000 in startup costs, committing 100% of that amount could qualify.
If a business requires $5 million in startup costs, committing $2 million may be considered substantial because of the scale.
In other words, the required amount is proportional to the total cost of establishing or purchasing the business.
The Reality of Low Investments
It is true that some investors have succeeded with relatively small investments. At Visa Business Plans, we have prepared successful E-2 cases with as little as $50,000 and even $12,000. But those cases are the exception, not the rule.
For example:
A $15,000 investment may be enough for a small service-based business with minimal overhead, like a mobile cleaning company.
That same amount would almost certainly fail for a restaurant, retail store, or manufacturing operation, which require larger investments to be credible.
The lower the investment, the higher the scrutiny from consular officers. Anything under $100,000 should be considered very carefully.
A Common Misconception About “Money in the Bank”
One of the most widespread misconceptions is that you can qualify for an E-2 visa simply by depositing funds in a U.S. business bank account. This is false.
The funds must be irrevocably committed to the business. That means contracts signed, leases paid, equipment purchased, or services rendered. Without proof that the funds are actually “at risk,” the petition will fail even if the bank account balance looks impressive.
Why the Business Plan Matters
The investment section of the business plan is often the difference between approval and denial. Immigration officers rely on this section to see exactly how the funds have been deployed and whether they meet E-2 requirements.
At Visa Business Plans, we track and categorize every cent of the investment. Our analysts build precise, error-free investment tables that present the case clearly and convincingly. Attorneys and clients appreciate our attention to detail because we proactively identify potential red flags, especially in low-investment cases, before they turn into problems during adjudication.
Final Thoughts
An E-2 petition can succeed with a smaller investment, but only if the business plan and supporting evidence are airtight. A well-structured plan, realistic numbers, and a credible breakdown of funds are critical to showing adjudication officers that your investment is truly substantial.
At Visa Business Plans, we have prepared thousands of E-2 business plans and know exactly what officers look for. If you are considering an E-2 visa, contact us to learn how we can help you present a credible, detailed investment plan that maximizes your chances of approval.
Contact us today to get started
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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