Welcome to our series, Attorneys Ask, We Answer—a resource where we tackle real questions from immigration attorneys looking for practical solutions to help their clients. Through webinars, presentations, and daily interactions, we receive countless questions that help us better understand the complex situations attorneys face in navigating U.S. immigration laws. By sharing our insights here, we aim to provide the clarity and guidance you need to address common—and not-so-common—challenges.
Today’s question touches on a challenging scenario: Can an E-2 renewal be salvaged if a client didn’t coordinate with their immigration attorney after their initial business plan fell short? In other words, what happens when the original plan goes off track?
Step 1: Assessing Why the Initial Business Plan Didn’t Work Out
When an E-2 business fails to meet the expectations laid out in its initial business plan, salvaging a renewal requires a thorough and individualized analysis of what went wrong. Every case is unique, and it’s essential to ask critical questions:
- What specifically caused the business to diverge from the plan? Was the setback due to external factors beyond the client’s control, such as an economic downturn, unexpected market conditions, or supply chain disruptions? Or were the issues related to internal business decisions?
- Is there a reasonable justification for what happened? In some cases, there may be a valid explanation that USCIS or the consulate can consider, particularly if the business took a hit from unavoidable circumstances. Identifying a reasonable and documented cause for the change can help make the case for renewal.
Answering these questions can help determine if a path forward exists for a renewed E-2 visa.
Step 2: Providing a Justifiable Explanation
An E-2 visa renewal application hinges on the ability to present a credible, justifiable explanation for why the initial business plan fell short. In cases where the business was impacted by external forces, this explanation should be clear, documented, and supported by any evidence that underscores the legitimacy of the challenges faced. For instance, if economic changes directly affected the industry, including relevant market data or industry reports can strengthen the case.
When internal decisions contributed to the business’s failure, it’s crucial to demonstrate that the operation is still viable. Show how the client took steps to minimize losses, improve operations, or adjust strategies based on what they learned. This not only displays adaptability but also reinforces the client’s commitment to making the business succeed, which is a critical factor for USCIS.
Step 3: Developing a New Path Forward
Once the reasons for the business’s setbacks have been established, the renewal application should focus on a revised path forward. USCIS and consular officers will want to see a new business plan that is both realistic and financially viable, with a strategy for achieving positive results going forward.
This revised business plan should:
- Address Lessons Learned: Outline the specific challenges faced, how the business adapted, and what has changed to ensure future success.
- Set New, Achievable Projections: Include updated revenue, profit, and staffing projections that are backed by market research and reflect a realistic growth trajectory.
- Show a Path to Viability: Reinforce the business’s commitment to meeting E-2 visa requirements, particularly regarding non-marginality. This could mean expanding the business model, targeting new customer segments, or introducing additional products or services.
Final Thoughts
Salvaging an E-2 renewal after things haven’t gone as planned is challenging but not impossible. A clear, credible explanation and a well-defined path forward can often provide the foundation needed for a successful renewal. If you’re an attorney with a client in this situation, our team is here to help analyze the case and develop a customized, realistic business plan that demonstrates viability and aligns with E-2 requirements.
Contact us today to learn more about how we can support you in crafting a renewal business plan that gives your client the best chance for success.
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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