Visa Business Plans has prepared thousands of E-2 business plans. A common question our customers ask is – why do E-2s get denied?
There are several reasons for E-2 denials. This blog will address one of the most common causes of visa denial: when the investment is low, or it doesn’t meet the requirements and visa adjudication standards.
To qualify for an E-2 visa, the investor must make a substantial investment in the United States. Even though the actual amount depends on the nature of the business and other factors, any investment amount under $100,000 may be subject to greater scrutiny from a consular or adjudication officer.
We have prepared successful E-2 business plans with low investments of $50,000 or even $15,000, but we are fully aware that these are very low investment amounts and will not work for all E-2 visa cases.
To determine whether an investment is substantial, an adjudication officer will apply the “proportionality test,” which is an inverted sliding scale. The less the business costs to start up or purchase, the more that has to be spent before filing the application. Although there is no magic number for determining whether a business is substantial, investments constituting 100 percent of the total cost would typically qualify for a business requiring a startup cost of $100,000. On the other hand, an investment of $2 million in a $5 million business will most likely be considered substantial.
A common misconception among some foreign investors is that an E-2 can be obtained by just putting money in a business bank account. Nothing could be farther from the truth. Putting the investment funds in a bank account, without an actual commitment, is not enough to qualify for an E2 visa.
As the investment section of the business plan will break or make the E-2 visa petition, we at Visa Business Plans take it very seriously. Clients and attorneys appreciate that we work tenaciously to identify low investments or pinpoint potential issues that may result in denials. Our team tracks and categorizes every cent put at risk by the E2 investor. We then create error-free tables that allow consular and adjudication officers to get a clear picture of the investment.
In our next blog post, we will discuss more reasons why E-2s are denied and why a solid business plan can be your best alley against denials.
If you have any questions, do not hesitate to contact us! We offer free consultations if you would like to schedule an appointment.
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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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