How much do you need to invest for an E-2 visa?

Is there a minimum investment for an E-2 visa?

No. The Foreign Affairs Manual (FAM), the U.S. Department of State's guidance to consular officers, sets no dollar minimum for an E-2 investment. Under 9 FAM 402.9-6(D), the investment must be substantial, and officers decide that with a proportionality test, not a fixed amount.

Many websites quote a "typical" E-2 figure. Those figures are not rules. Two investors putting the same amount into different businesses can get different answers, because the test compares the investment with the cost of that specific business.

This article explains the test, what counts toward the investment, and how a business plan shows the numbers. For all 9 points an officer checks, see E-2 visa requirements explained (opens in a new tab).

How does the proportionality test work?

Officers compare the qualifying funds invested with the total cost of the business. Under 9 FAM 402.9-6(D), the investment must be substantial in proportion to that cost, large enough to show the investor's financial commitment, and large enough to support the likelihood that the investor will develop and direct the business.

The FAM calls this an inverted sliding scale. The lower the cost of the business, the higher the share of that cost the investor is generally expected to put in. The higher the cost, the lower the share can be.

The FAM gives 2 reference points:

• An investment of 100 percent of a business that costs $100,000 to start would normally qualify.
• An investment of $10 million in a $100 million business may also be substantial, based on its size alone.

Between those points, there are no fixed percentages. Each case is assessed on its own numbers.

What is the cost of the business?

The cost of the business is the number the investment is compared against. For an existing business, it is generally the purchase price, which is normally its fair market value. For a new business, it is the actual cost needed to make the business operational. That second number is built up line by line in the plan.

For a new business, the cost usually includes equipment, inventory, lease deposits, build-out, licenses and working capital to cover the period before revenue covers costs. Each line needs evidence: quotes, invoices, a signed lease, contractor estimates.

In this example, the officer compares the funds the investor has committed against the $180,000 total. The example shows the method only. It does not say what amount would be enough for any real case.

What counts toward the E-2 investment?

An E-2 investment is capital placed at commercial risk in the business, from a lawful source and in the investor's possession and control. Under 9 FAM 402.9-6(B), it must be committed to the business, not simply available in a bank account, and it must be subject to partial or total loss if the business fails.

What can count, according to the FAM:

• Cash from savings, gifts, inheritance or other legitimate sources, spent on or committed to the business
• Equipment and inventory bought for the business
• Intangible property, such as a patent, when its value can be reasonably determined
• Loans secured by the investor's own personal assets, such as a second mortgage on a home

What generally does not count:

• Loans secured by the assets of the business itself, because the investor does not carry the risk
• Money held in an account and not yet committed to the business
• An idle investment held for appreciation, such as undeveloped land

Where the money came from matters too. The source of funds needs a clear paper trail. Our article on source of funds for an E-2 investment covers how to document it.

Does money in escrow count?

It can. The FAM describes an investor who is close to the start of actual operations, not just scouting locations. A purchase or a set of startup payments held in escrow, released only if the visa is issued, can still count as committed. The funds must be irrevocably committed to the business, with the release tied only to the visa decision.

Escrow is common for purchases of existing businesses. The plan should explain the escrow terms and show how the funds will be used once released.

How does the investment amount connect to marginality?

The investment and marginality are separate points, but they meet in the plan. Under 9 FAM 402.9-6(E), an E-2 business needs the capacity to do more than earn a living for the investor and family, generally within 5 years. A small investment in a business that can only support its owner can raise both questions at once.

That is why the plan's startup costs, hiring plan and 5-year projections need to agree. The investment builds the business described in the projections. The projections show revenue and jobs that grow past the investor's own living costs. Read more in what marginality means for an E-2 business.

How does a business plan show the investment?

A plan shows the investment in 3 places. The use of funds section lists what the money buys and when. The financial projections show how that spending turns into revenue. The ownership section confirms the investor's share. Officers compare these figures with bank records, receipts and contracts, so every figure should match.

A few habits make the numbers easier to follow:

For how to lay out the use of funds table, see use of funds and startup costs. For every section of the plan, see what goes into an immigration business plan (opens in a new tab).

Where does VisaPlans fit?

VisaPlans prepares the E-2 Business Plan (opens in a new tab), including a use of funds table and 5-year projections built around 9 FAM 402.9. Expert-trained AI writes the plan and a human specialist reviews every page. Delivery is within 3 business days of confirmed information. See pricing (opens in a new tab) for what is included.