What is the E-2 Visa Investment Requirement?

The regulations for E-2 visa requires that the investor has invested a substantial amount into the business. The E-2 visa investment must be of such a nature that the funds are at risk and guarantee that the investor would be committed to the success of the business.

To determine whether an investment is substantial, the investment has to be a substantial portion of the amount that would be needed to make the business operational.

There is no fixed minimum investment amount; it depends on the type of business and the amount of funds it requires. If the funds needed to make the business operational are large, then the proportion you need to bring would be smaller.

Since you are applying for an E-2 visa, substantial funds need to be at risk. Although there is no minimum requirement, it would be best if the funds you want to invest start from $50,000. This is because a lesser amount might be considered too small to guarantee your continued interest in the success of the business.

These E-2 visas are given to a variety of business ventures. You could invest in a motel, shooting range, gift shop, convenience store, a food franchise, building contracting, a property management company, and so on. Each of these types of businesses would require different initial investment values.

E-2 Visa Investment Amounts for Existing Businesses

If you want to buy an existing business, the investment amount is the purchase price of the business. You are allowed to use a bit of financing for the business, but it should be limited.

Although there are no specific limits to the proportion of financing in your investment, the general guideline is that is shouldn’t be more than 25 to 30% for investments ranging from $100,000 to $500,000.

This refers to financing secured with the business’ assets. You are also allowed to use additional financing unsecured by the business’ assets.

The greater the cost of purchasing a business, the higher the proportion of allowed financing would be. For a motel business that costs about $1 million to purchase, you can use 50% financing.

E-2 Visa Investment Amount for New Businesses

If you want to invest in a new business, the investment amount is the amount of capital you need to make the business operational. This figure varies for different businesses. If you want to invest in a new restaurant, you should at least have leased the business premises and purchase equipment before applying for the E-2 visa. If you want to start a pool servicing business, all you need is to lease your business premises, purchase equipment, and put funds in your working capital account.

One drawback in the E-2 visa application for people starting a new business is that you need to have already engaged in some business expenditure before making your application. Just having funds in bank account is not enough to show that the funds have been irrevocably committed to the business.

Before deciding to commit funds to an E-2 visa investment, you need to get advice from a skilled immigration attorney.