What is the Minimum Investment for an E-2 Investor Visa?
Securing an E-2 Investor Visa is an excellent way to move to the United States for financial opportunity, a new lifestyle, and stability. The E-2 Investor Visa allows individuals from treaty countries to start or purchase a U.S. business and work in it. For more details, see our E2 Visa FAQ, click here.
Before applying for the E-2 Visa, investors are required to make a committed investment. This means spending the investment first to demonstrate ownership of a real and operating business. U.S. Immigration wants to ensure that investors have genuine intentions and efforts for a successful business, and to bring economic benefits by hiring American workers.
However, this often raises the concern: What if I invest and it’s not enough, and my visa is denied?
Determining the appropriate investment amount is a crucial step to first discovering if the E-2 visa is right for you.
Tell Me How Much To Guarantee an E-2 Visa Approval
Investors often wonder about the minimum investment amount required to secure an E-2 visa. The visa requirements state that investors need to make a “substantial investment,” a broad term that feels very meaningless.
This lack of clarity leads many to Google for terms like “E2 visa minimum investment” or ask questions like, “Is $50,000 enough?”
You are not alone in the E-2 process. Our firm has successfully assisted over 600 E-2 investors. From our years of experience and success, we have developed effective E-2 investment strategies that minimize financial risk and maximize E-2 approval chances. We know what a strong E-2 investment amount should be.
Let us walk you through some examples in this article. By the end, you’ll have a clearer understanding of where to start and whether your investment budget is “substantial”.
What is a Substantial Investment?
Baseline Investment Amount
As you know, the E-2 visa requirements do not specify a fixed minimum investment amount.
However, a baseline investment of $100,000 is generally considered adequate for a decent E-2 application. An investment of $150,000 or more can make for a stronger application.
Let’s dig deeper on how this investment amount applies for a startup businesses and existing businesses.
For a startup business, the $100,000 investment should cover, but is not limited to, the following:
- Registering the business
- Obtaining necessary licenses and permits
- Securing a commercial lease (home-based offices are more likely to be denied)
- Purchasing inventory and supplies
- Purchasing business equipment
- Renovating or building out premises
- Hiring American workers
- Anything else relevant for the specific business to prove it is real and operational
For a more detailed list of common investment activities, sign up for our Ultimate E-2 Visa Guide.
For purchasing an existing business, the $100,000 investment should cover, but is not limited to, the following:
- Purchase of 50% or more of the business, with the investor holding the highest managerial position.
- Business is bought at fair market value.
- Business can demonstrate strong financial performance to generate sufficient profits for the investor's family to live comfortably based on the investors ownership.
- Business can show strong payroll to demonstrate the hiring of American workers.
If the investment amount cannot purchase a business that meets the 4 factors, then additional investments may be needed to improve its viability. Thus increasing the investment beyond $100,000.
Please note that the above baseline is based on our years of experience and deep understanding of the visa officer’s perspective. However, the E-2 visa has many requirements and factors, so we cannot guarantee that the baseline investment alone will ensure approval.
Factors Influencing Investment Amount
Different businesses have varying startup or purchase costs. For instance, a $100,000 investment might not be considered "substantial" for a high-end restaurant in New York City due to the high costs of prime real estate, upscale interior design, premium kitchen equipment, and the necessity for a well-trained staff. In a city like New York, these expenses can quickly exceed $100,000, making it insufficient to establish a competitive, high-quality dining establishment.
On the other hand, a $100,000 investment could be substantial for a food truck business in Texas or Florida. The costs associated with purchasing and outfitting a food truck are significantly lower than those for a brick-and-mortar restaurant. A food truck typically requires a smaller initial investment for the vehicle, kitchen equipment, permits, and initial inventory. Additionally, operating costs such as rent and utilities are minimal compared to a stationary restaurant, allowing a larger portion of the investment to go directly into the business. This amount can cover essential startup expenses and demonstrate the investor's commitment to the business. With careful planning and execution, a $100,000 investment in a food truck business can be sufficient to meet the E-2 visa requirements, provided it is backed by a solid business plan and meets all other criteria.
But I’ve Been Told $50,000 Can Work
While there are claims that an investment as low as $50,000 can secure an E-2 visa, such cases are exceptions rather than the norm. Lower investments increase the scrutiny of the application.
Investments lower than $100,000 can theoretically be sufficient but come with higher risks. Immigration officers might view low investments as marginal businesses (too small), which are less likely to grow or succeed, increasing the chances of visa denial.
Consider this, visa officers want to see financial commitment to ensure that the investor has taken all necessary means and more to ensure business success. The lower the investment, the more the visa officer may deem the business to be marginal (too small) for success.
Increasing Your Chances of Approval
To build a strong E-2 application start with having the right expectation on the investment amount, consider these points:
- Aim for a general baseline of $100,000, which has worked well for many types of businesses.
- The actual investment amount should depend on the business type, location, and percentage of ownership.
- An investment lower than $100,000 even for low cost businesses generally faces a higher risk of denial.
- If purchasing an existing business with strong financial performance in profits and payroll, then the $100,000 can work.
- If purchasing an existing business with weak financial performance in profits and payroll, then expect to invest more the purchase price of the business which can lead to over $100,000.
- Consult with an immigration attorney who has lots of experience evaluating the strength of your investment and business for E-2 visa eligbility.
Still not clear on how much to invest? No problem! Just check out some of our real client examples.
Examples of Real Investments
- Interior Design & Renovation: Total Investment: $100,000
- Tutoring Franchise: Total Investment: $120,000
- Trucking Business: Total Investment: $116,000
- Dessert Shop: Total Investment: $117,063
- Home Repair: Total Investment: $158,000
- Restaurant: Total Investment: $175,000
For more client investment stories, click here.
Summary
Determining the right investment amount for an E-2 Investor Visa is nuanced. Consult with an experienced E-2 visa attorney to discuss the strength of your investment and the business you are interested in.
FAQs
What is considered a substantial investment for an E-2 visa? A substantial investment is an amount sufficient to cover all start-up or purchase expenses necessary to fully set up and develop the business to the point of being operational. Generally, investors should be prepared to invest $100,000 or more, depending on the business.
Can an investment of $50,000 secure an E-2 visa? While possible, an investment of $50,000 carries a higher risk of visa denial as it may be viewed as marginal. It's safer to consider a higher amount to improve approval chances.
Does a $100,000 investment guarantee E-2 visa approval? No, investing $100,000 or more does not guarantee visa approval. Immigration officers consider various factors, including whether the investment is appropriate for the specific business type.
What type of businesses are suitable for the E-2 visa? Any legitimate for profit enterprise can qualify, provided the investment is substantial and the business is capable of generating significant economic impact by hiring American workers.
Should I consult a professional for my E-2 visa application? Yes, consulting a professional with experience in E-2 visa applications can provide valuable insights and improve your chances of a successful application.
Tailored Solutions for E-2 Visa Applicants
Our law firm specializes in providing in-depth knowledge and tailored solutions for E-2 visa applicants. We go beyond standard regulations to address unique business, visa, and logistical challenges.
- Real Strategies: Proven strategies that have helped hundreds of clients achieve E-2 approval.
- Expert Guidance: Our team has extensive experience with E-2 visas, offering step-by-step guidance.
- Referral Network: Access to a network of professionals who understand the E-2 process.
