What is the Substantial Investment Requirement for E-2 Visas?

Many foreign investors look to the United States each year for new opportunities to increase their financial return. The United States government has long recognized the important role these investors can play in the American economy. To enable continued investment in the American economy, the United States government provides for the E-2 visa program for investors from qualifying nations to be admitted to the United States when investing a substantial amount of capital in a U.S.-based business. Such visas may also extend to certain eligible employees of the individual investor so long as the original investor hails from a treaty nation that qualifies for the E-2 Visa.

What is a ‘Substantial Investment’?

The unsatisfying answer to this question is that there is no preset amount that will qualify as a substantial investment, as no amount has been set by the US government. Instead, the government has what is considers a proportionality test to determine if an applicant has indeed invested enough capital to be considered eligible for an E-2 visa. This means that the government looks at what the typical cost of setting up a specific business would likely be and compares that to the amount of capital an applicant has invested in that business. As you can imagine, some businesses have a much higher start-up cost than others and would therefore require a much larger investment.

No visa application case is exactly the same because much of the law governing these applications is based on circumstances that are specific to a particular applicant. This is especially true for an E-2 visa application, the process of which may seem vague and unfamiliar. Our experienced immigration attorneys at Jurado & Farshchian can help you understand the nuances of visa-related laws, including laws and regulations concerning E-2 visas. Our qualified immigration attorneys can help you prepare your application as well as advise you on what you can do to increase the potential success of your application.

What Should I Know About Substantial Investments for E-2 Visas?

You cannot simply deposit a large amount of money into a business account to prove that you have made a substantial investment in that business. The approval process requires you to demonstrate your investment in a business, which will require you to prove you have significantly invested in the actual operation of a business. This can include things like lease payments, furniture purchases, office equipment purchases, and various other operating expenses. You can only include the amount you have actually spent on the business. In other words, you cannot count future investment costs.

You also cannot count any investment that is secured by assets within the business. Your investment in the business must qualify as at-risk. For instance, if your capital investment is secured by office equipment within the business, it cannot be applied toward your application. You might be able to include the value of intangible items, like the cost of marketing and other similar operating expenses, but to do so you will need to be able to prove the actual value of those services. This means you must keep meticulous business records related to all of your investments in the business, as the government will want to review them during the application process.

Are There Other Important Considerations?

Yes, there are many. Immigration is a complicated legal field, but our experienced Florida immigration attorneys are constantly aware of these changes and will provide a detailed, individually-tailored E-2 visa experience for interested investors. Contact us by emailing [email protected] or by calling us at 305-921-0440. We have helped many clients with varying degrees of capital investment achieve E-2 visas, and we are ready to put that experience to work for you.

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