A recent Reddit discussion caught our attention. An EB-2 National Interest Waiver (NIW) applicant with a PhD, more than 20 publications, and approximately 400 citations received a Request for Evidence (RFE). Among the issues that surprised the applicant was a question about funding for the proposed endeavor.
Interestingly, we encounter this quite frequently.
Having worked on thousands of EB-2 NIW projects alongside some of the most prominent immigration attorneys in the United States, we’ve noticed that many applicants focus on explaining the importance of their proposed endeavors but pay far less attention to how they plan to finance them.
When the proposed endeavor requires financial resources, however, explaining where those resources will come from is an important part of presenting a realistic plan.
A Promising Idea Still Needs a Practical Plan
Consider an entrepreneur with extensive experience in food manufacturing who wants to establish a U.S. company developing technology to reduce food waste.
The proposed endeavor addresses an important industry challenge, and the entrepreneur has the professional experience to pursue it. However, developing technology may require specialized equipment, engineers, testing facilities, and sufficient working capital to sustain operations before revenue begins coming in.
When preparing the business plan, we need to understand how the entrepreneur will finance those outlays.
Will the entrepreneur use personal savings? Is there an existing business generating revenue? Are investors, lenders, or strategic partners involved?
These are standard business planning questions, yet they still surprise some NIW applicants.
What If the Funding Isn’t There Yet?
Suppose the entrepreneur estimates that launching the company will require $750,000 but currently has $100,000 available.
That doesn’t automatically make the endeavor unrealistic. Many businesses depend on financing or outside investment to get started.
However, the business plan needs to explain how the remaining $650,000 will become available and what supports that expectation.
Perhaps the entrepreneur has already approached potential investors, identified financing opportunities, or established relationships with strategic partners. Alternatively, the business may launch in phases, reducing its initial capital requirements.
The key consideration is whether the proposed funding strategy matches the company’s financial needs and implementation timeline.
Is Funding Now an EB-2 NIW Requirement?
There is no universal USCIS requirement that every NIW applicant demonstrate a specific amount of secured funding.
However, under the NIW framework, applicants must demonstrate that they are well positioned to advance their proposed endeavors. When an endeavor requires substantial financial resources, the availability of those resources and the applicant’s strategy for obtaining them can become relevant to that assessment.
One of the components of our proprietary methodology is monitoring adjudication trends. We pay close attention to the questions USCIS is raising, the issues immigration attorneys are encountering and how expectations appear to be evolving, even when those expectations aren’t explicitly spelled out in the regulations.
Funding is a good example. We’ve been noticing greater scrutiny of financing strategies in entrepreneurial NIW cases for some time, and conversations with immigration attorneys at international conferences we’ve attended have reinforced what we’ve been observing.
As a result, we’ve adjusted how we prepare our clients’ business plans. We now place greater emphasis on documenting available resources, examining potential funding sources and explaining how the proposed endeavor can realistically be financed.
We believe it’s important to address these questions from the beginning, rather than leave clients surprised when they appear in an RFE.
Why We Ask About Funding From the Beginning
We frequently remind clients that the U.S. government doesn’t grant immigration benefits simply because someone proposes a promising business idea. Otherwise, almost anyone could present an interesting concept and expect to qualify for an NIW.
The proposed endeavor must be supported by a credible plan for carrying it out.
For entrepreneurs, that means examining market conditions, operational requirements, financial projections and the resources necessary to implement the business.
At Visa Business Plans, we use this information to develop realistic, research-supported business plans that reflect both the applicant’s circumstances and the adjudication trends we’re observing.
Our role is to provide the business analysis, while the immigration attorney determines how that information supports the legal arguments presented to USCIS.
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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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