Most E-2 investors reach the same moment of hesitation.
They are ready to move forward. The business is identified. The numbers make sense. The opportunity feels right. Then the question hits.
What happens to my money if the visa is not approved?
That concern is valid. An E-2 investment is a real financial commitment, often involving a significant amount of capital. For many investors, wiring funds before knowing the outcome feels risky and unsettling.
This is where an escrow agreement can make a meaningful difference.
The Risk Every E-2 Investor Thinks About
The E-2 visa requires a substantial investment that is at risk. That requirement is clear. What is often misunderstood is how to demonstrate commitment without exposing yourself to unnecessary financial loss.
Some investors believe they must fully spend the funds before filing. Others delay moving forward entirely because they are afraid of losing everything if the visa is denied.
An escrow agreement offers a practical middle ground.
What an Escrow Agreement Actually Does
An escrow agreement allows the investor to place the required investment funds into a secure, third-party account. The funds are committed to the business and designated for specific purposes, but they are released only if defined conditions are met.
In an E-2 case, that condition is visa approval.
This approach shows that the investor is serious, prepared, and financially committed, while also protecting capital from premature loss.
A Real Client Situation
We worked with an investor who planned to purchase a restaurant in the United States. He had identified the business, negotiated the purchase price, and planned for leasehold improvements and equipment purchases.
His concern was straightforward.
If my visa is denied, I cannot afford to lose this money.
He worked with his immigration attorney to structure an escrow strategy tied directly to E-2 approval. The funds for the business acquisition, improvements, and equipment were placed into escrow with clear instructions.
If the visa was approved, the funds would be released to the seller and vendors, and the restaurant transaction would move forward. If the visa was denied, the escrow agreement required the funds to be returned to the investor.
Our role was to ensure the business plan clearly reflected this structure, aligned with the escrow terms, and demonstrated a realistic and executable investment timeline.
The visa was approved, the escrow closed, and the restaurant opened with clarity and confidence.
Understanding the At Risk Requirement
A common misconception is that escrowed funds do not meet the E-2 at risk requirement.
Many attorneys agree that this is not accurate when the escrow is structured correctly.
When the investor cannot unilaterally cancel the transaction and the release of funds to third parties is tied solely to visa approval, the investment reflects real commitment. The capital is dedicated to a specific business and ready to be deployed immediately upon approval.
This distinction is critical and often misunderstood.
Why Legal Guidance Is Essential
Not every E-2 case is the same. Business types differ. Investment structures vary. Timing and jurisdiction matter.
That is why escrow agreements should always be reviewed and structured by a qualified immigration attorney with experience in E-2 cases. What works in one situation may not be appropriate in another.
When properly structured, escrow can be a powerful tool that balances compliance with risk management.
Planning With Confidence Instead of Fear
E-2 investing should be strategic, not reckless.
An escrow agreement allows investors to move forward thoughtfully, demonstrate commitment to their business, and reduce the risk of financial loss if the visa is not approved. It replaces uncertainty with structure and hesitation with a clear plan.
For many E-2 investors, it is the difference between waiting on the sidelines and moving forward with confidence.
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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