This is one of the most frequently asked questions by prospective investors.

There is no minimum investment amount required for an E-2 visa. However, the investment must be sufficient to establish, or purchase, a viable business. Depending on the type of business, the amount itself can vary considerably. Visas are issued for all types of business ventures, e.g. convenience stores, motels, property management companies, shooting ranges, gift shops, building contractors, food franchises, and pool cleaning companies, to name but a few, and each of these may require a different investment amount.

It is generally difficult to obtain an E-2 visa with an investment of less than $100,000 to $150,000, and for many businesses you will need to invest more.

Investment amount for an existing business

Here, the investment amount must be the business purchase price, but some financing may be permitted. The amount of financing allowed is at the discretion of the adjudicating consular officer. Although the visa regulations are not specific, a rough guideline is that financing should not be more than 25-30% of the purchase price for an investment of between $100,000 and $500,000. This amount refers to financing secured by the business assets. Additional borrowing, which is unsecured by the business assets, is also permitted.

The more expensive the business, the greater the percentage of secured financing permitted. For a motel business that costs $1 million, around 50% financing would probably be acceptable.

Investment amount for a new business

Here, the investment amount is that which is necessary to establish the new business. For a new restaurant, for example, you would be expected to have leased premises, and purchased equipment and furnishings prior to the visa application. For a pool service business, you may only need to lease premises, buy office equipment, vehicle, etc, and put funds in a business account for working capital.

From the perspective of an E-2 applicant, the drawback of starting a new business is that you must actually make the necessary expenditures prior to the submission of the visa application. Simply depositing funds in a business account is insufficient to show that funds have been adequately committed to the business. If the new business investment is small, you will also need to have a comprehensive business plan and considerable supporting documentation to demonstrate the credibility of the business.

Approvals for new businesses can, therefore, be more difficult to obtain than for existing ones. If you are really committed to establishing a new business, however, don't give up. Contact us and discuss your proposals with us to maximise your chances of visa approval.