By Mark I. Davies, Esq. | Global Managing Partner, Davies & Associates LLC
Last Updated: December 2025
Reviewed by Richard Latta, Esq., Managing Attorney Davies & Associates, Edinburgh, Scotland
Executive Summary: Is the E-2 Visa Right for You?
How E-2 Treaty Investor Visa Applications Are Evaluated
The E-2 Treaty Investor Visa allows eligible treaty-country entrepreneurs to live and work in the United States by investing in and actively managing a real operating business. It is often faster and more flexible than other US visa options, but approval depends on how the investment and the business are evaluated in practice.
This guide explains how E-2 applications are assessed under the Foreign Affairs Manual (9 FAM 402.9) and, for change of status cases, the USCIS Policy Manual (Volume 2, Part G). It focuses on realistic investment expectations, how officers assess credibility and business viability, and how the E-2 visa compares to alternatives such as the H-1B and EB-5.
Who This E-2 Visa Guide Is For
- Prospective Investors: Entrepreneurs seeking clarity on capital requirements before committing funds.
- Business Owners: Investors needing to transfer essential employees or specialist workers.
- Current Visa Holders: Individuals reviewing renewal requirements, compliance, or status maintenance.
- Long-Term Planners: E-2 holders looking for permanent residence (Green Card) strategies.
What are the Three Types of E-2 Visas?
- E2 Investor Visa: Primary Investor
- E2 Specialist Worker Visa: Specialist workers holding the same nationality as the primary investor
- E-2 Derivative Visa: Spouses and children under 21 years of age
Why Businesses and Entrepreneurs Choose the E-2 Treaty Investor Visa
Video Key Takeaways
- 0:07 - Fast processing times for E-2 applications.
- 0:26 - Spousal work authorization (EAD) details.
- 1:38 - The Grenada Citizenship "Bridge" to E-2.
Click to View Full Video Transcript
[00:00:00] Having the E-2 Treaty Investor Visa is the next best thing to having a Green Card...
[00:01:38] I would be a big advocate for the Grenada Citizenship by Investment program...
| Feature |
What It Allows |
Why It Matters |
| Own and Run a Business |
Ability to own, operate, and work in a business in the United States |
Direct access to the US market while actively managing day-to-day operations |
| No Fixed Investment |
No set minimum investment amount |
Capital can be aligned with the size and type of the business rather than an arbitrary threshold |
| Renewals |
Indefinite renewals possible |
Life-long E-2 status is available for as long as the business remains active and compliant. L-1A visas have a maximum validity of 7 years. |
| Spouse Work |
Automatic employment authorization |
Spouses may work for any employer or start a business without a separate permit |
| Green Card Pathway |
Allows pursuit of permanent residence through separate immigrant visa categories |
Enables long-term planning for investors who later qualify under EB-5, L-1, EB-1, NIW, or family-based options. E-2 visa holders who meet the statutory and evidentiary requirements for managerial or executive roles may also qualify for EB-1C. |
| Faster Processing |
E-2 visas are processed solely at a US consulate |
E-2 visa applicants skip USCIS processing (required for L-1A) and proceed directly to consular processing. |
| Employee Workers |
Bring qualified foreign employees with the same nationality |
Enables founders to build and scale operations with trusted personnel |
| Investor Profile |
Active business owners and operators |
Suited to founders involved in day-to-day management |
| Family Residency |
Dependents may live and study in the United States |
Children can attend school while the business operates |
Summary of E-2 Treaty Investor Visa Benefits
The E-2 Treaty Investor Visa offers entrepreneurs a fast and flexible way to live and work in the United States by investing in and actively managing a real operating business. With no fixed investment threshold, consular processing, automatic spousal work authorization, and unlimited renewals while the business remains compliant, the E-2 visa is a practical option for business owners seeking long-term presence in the US.
Although it does not provide a direct green card, E-2 status allows qualified investors to plan strategically and pursue permanent residence through other available pathways.
E-2 Visa vs. EB-5 vs. L-1: A Comparison Table
| Feature |
E-2 Treaty Investor |
EB-5 Immigrant Investor |
L-1A Executive Transfer |
| Primary Goal |
Speed (Work in U.S. in 2–4 months) |
Green Card |
Transfer Executives |
| Min. Investment |
None Fixed (Recommended $100k+) |
$800,000+ |
N/A (Requires qualifying relationship) |
| Processing Time |
15 days – 4 months |
2–4+ years |
Moderate (Premium available) |
| Green Card Path |
No (Indirect options exist) |
Yes (Direct) |
Yes (EB-1C) |
| Best For |
Entrepreneurs & Franchisees |
High Net Worth Investors |
Multinationals |
E visas, including the E-2, are nonimmigrant visas based on treaties between the U.S. and other countries. The E-2 visa specifically requires active management of a U.S. business, unlike some other investment options.
📋 E-2 Investor Visa Requirements 2026: The 4 Core Pillars
Approval of an E-2 Treaty Investor Visa is governed by statute, regulation, and policy guidance. Adjudicators rely on the Immigration and Nationality Act (INA), 8 CFR, the Foreign Affairs Manual (FAM) for consular cases, and the USCIS Policy Manual for change of status filings.
For those interested in alternative investment-based immigration options, see our Complete Guide to EB5 Direct Program.
Only nationals of treaty countries can be the principal applicant for an E-2 visa, and they must make a qualifying investment in a U.S. business to be eligible. These four pillars are legally defined requirements, not discretionary concepts.
This guide provides an overview of E-2 visa requirements and related. L1 visa requirements.
Read more on E-2 visa requirements by following this link.
1. E2 Visa Treaty Nationality
Citizens of over 80 countries are eligible, including major treaty partners like the United Kingdom, Canada, Australia, France, Germany, Japan, South Korea, and Italy. The E-2 visa is available only to citizens of certain countries that have a treaty of commerce and navigation with the United States, sometimes referred to as treaty trader countries.
🌍 Check Your Eligibility: See the full list of all 80+ E-2 Treaty Countries here.
Legal Authority
- INA § 101(a)(15)(E)(ii)
- 9 FAM 402.9-4(A)
🔥 Hot E-2 Visa Tip: For Citizens of China, India & Russia
Nationals of non-treaty countries often obtain Grenada Citizenship by Investment or Turkey Citizenship by Investment to become eligible for the E-2 visa.
⚠️ Critical Verification: Many “agencies” offering this service are unlicensed middlemen.
Why We Are Different: We are one of the few U.S. law firms with direct government licensure to handle this process, ensuring you avoid third-party risks. Our Chairman, Mark Davies, is personally listed as an authorized agent by the Government of Grenada.
✅ Verify our credentials: You can find us on the Official Government of Grenada IMA Authorized Agents List. (Note: On the official registry, our license is listed under our Singaporean subsidiary, Global Citizenship Services Pte. Ltd.)
2. Substantial Investment (The “At-Risk” Rule)
There is no fixed minimum investment.
Does E-2 Have a USD 100,000 Minimum Investment?
A minimum investment of USD 100,000 is frequently cited. This figure comes from examples previously cited in the Foreign Affairs Manual which were removed from that manual. There is no legal basis for a minimum investment of USD 100,000.
E-2 Visa Proportionality Test
The E-2 visa requires an at-risk investment, meaning the funds invested must be irrevocably committed to the business and subject to loss. The application must include proof that the funds invested are at risk and not simply held in reserve. Officers apply a proportionality test based on total startup cost.
Legal Authority
🔥 Hot E-2 Visa Tip
- Low-cost startups often require near-100 percent capitalization.
- Higher-cost businesses may qualify with 40–50%.
- Escrow is allowed if release depends only on visa approval.
3. Active Operations & Legitimate Enterprise
Passive investments do not qualify. Funds must be irrevocably committed to real operations. The E-2 investment must be made in a commercial enterprise, specifically an operating commercial entity that produces goods or services for profit.
Legal Authority
🔥 Hot E-2 Visa Tip:
Funds merely sitting in a bank account are a common denial trigger.
4. Non-Marginality & Job Creation
The E-2 Visa Marginality: The Basic Rule
An E-2 business must contribute economically and not exist solely to support the investor. The enterprise must generate more than minimal living for the investor and their dependents, and must demonstrate present or future capacity to create a significant economic impact.
E-2 Visa Marginality in Practice: Employment of U.S. Workers
While not required by the law or the immigration rules in 8CFR, as a practical matter the easiest way to demonstrate compliance with the E-2 Visa marginality rule is through employment.
Legal Authority
🔥 Hot E-2 Visa Tip:
Plans projecting 2–3 U.S. employees within 3 years are commonly viewed as credible.
📋 The E-2 Visa Application Process: A Strategic Roadmap
Applying for the E-2 visa is not merely filling out forms; it is a multi-stage legal campaign. Each step builds the evidence required to survive the “Consular Review” phase.
Note: It is essential to maintain a valid visa for entry, residence, and re-entry into the U.S. A valid visa is required not only for your initial entry but also for any future travel or renewal of your E-2 status.
Step 1: Strategic Business Identification
Locate a qualifying business (startup or purchase) that meets the “Real and Active” standard.
Step 2: Capital Commitment (“The Point of No Return”)
You must irrevocably spend or commit your funds before you apply. Money cannot just sit in a business bank account.
Step 3: The 5-Year Business Plan
Draft a specialized immigration-compliant business plan that proves the company is not “marginal”.
Step 4: Legal Structure & Funding
Execute corporate documents, issue shares to the treaty national, and formalize the “source of funds” trail.
Step 5: Form DS-160 & Fee Payment
Submit the Department of State’s online nonimmigrant visa application and pay the machine-readable visa (MRV) fee.
Step 6: The “E-2 Binder” Submission
Submit your evidence (business plan, financial docs, proofs) to the specific U.S. Consulate (often via PDF upload).
Step 7: The Consular Interview
Visa applicants aged 14 to 79 are required to attend an in-person interview at the U.S. Embassy or Consulate, where an officer will test your knowledge of the business and your intent to depart.
🏢 1. Identifying a U.S. Business: The "Real & Active" Test
E-2 Visa Businesses: No Passive Investments
To qualify for an E-2 visa, you cannot just buy a passive investment (like a rental home) or a stock portfolio. You must buy or build a job-creating engine. The E-2 visa requires investment in a US business or US enterprise, and choosing an established enterprise may offer greater stability for visa duration and the potential for ongoing legal stay.
E-2 Businesses: Must be Real and Active
The Foreign Affairs Manual (FAM) explains that the enterprise must be a real, active commercial or entrepreneurial undertaking producing some service or commodity for profit. The investor must own at least 50 percent of the enterprise or control it through a managerial position, demonstrating active ownership, control, and management of the US business.
A. The 50 percent E-2 Ownership Rule
You do not need to own 100 percent of the company. You must own at least 50% of the U.S. enterprise to possess "treaty nationality".
Crucial Detail: If you own exactly 50%, you retain "negative control" (the power to block decisions), which is sufficient for E-2 purposes.
Legal Authority: 9 FAM 402.9-4(B) – Defines nationality and ownership requirements.
B. Startup E-2 Businesses vs. Existing E-2 Businesses
- Existing Business: Lower risk of “Marginality” denial because it already has revenue and employees. You must show a Purchase Agreement. An established enterprise with efficient operation can also support longer visa durations and ongoing legal stay.
- New Startup: Higher scrutiny. You must show you have secured a physical location (lease) and purchased equipment before the visa is approved.
❌ Warning: A virtual office or a “business on paper” will be denied under the “Real and Active” test.
C. Which Businesses Actually Qualify for E-2? (The "Real & Active" Test)
Not every business qualifies for an E-2 visa. You cannot simply buy a rental home or a stock portfolio; the enterprise must be a “job-creating engine” that passes the “Real and Active” test defined in the Foreign Affairs Manual.
Based on two decades of thousands of E-2 visa approvals, Davies & Associates have identified several proven business models that satisfy the strict 2026 requirements, these include:
The Franchise (e.g., Fitness Studio or QSR)
- Why it Works: Franchises are favored because the business model is proven, reducing the risk of failure.
- Investment Example: $250,000 covering the franchise fee, equipment, and build-out.
- Legal Advantage: Because you are buying into an established system, it is easier to prove the business is not “marginal” (i.e., it will generate enough revenue to hire staff).
The Tech Pivot (e.g., AI or SaaS Startup)
- Why it Works: Even with lower liquid capital, these can qualify if the “value” of the intellectual property (IP) is substantial.
- Investment Example: $120,000 spend, comprised of proprietary software IP valuation plus cloud infrastructure costs.
- Legal Advantage: This targets the “Substantial Investment” requirement by capitalizing intangible assets alongside cash.
The Specialist Consultant (e.g., Marketing or Engineering Agency)
- Why it Works: Ideal for low-capital entrepreneurs. The key here is the “Proportionality Test”. For a low-cost startup, investing 100 percent of the necessary capital (e.g., $75,000) is often viewed as “substantial”.
- Investment Example: $75,000 fully spent on office setup, licenses, and marketing.
- Legal Advantage: By capitalizing 100 percent of the startup cost, you satisfy 9 FAM 402.9-6(D) without needing hundreds of thousands of dollars.
Professional Services (e.g., Legal, Consulting, or Accounting Firm)
- Why it Works: Professional services businesses that provide specialized, knowledge-based services are recognized as qualifying commercial enterprises for the E-2 visa.
- Investment Example: $80,000 for office lease, technology, and initial staffing.
- Legal Advantage: These businesses are considered active and value-adding, meeting the E-2 requirements for real and operating enterprises.
⚠️ Warning: Do not purchase a passive investment. A “business on paper” or a virtual office will be denied under the “Real and Active” test.
🔥 Hot E-2 Visa Tip: If your business fails or is deemed marginal, your E-2 status may be at risk. To mitigate this, ensure your business is properly capitalized and has diversified revenue sources to reduce the risk of failure and increase your chances of approval.
📈 2. Preparation of the Business Plan: Avoiding "Marginality"
The "Marginality" Test (9 FAM 402.9-6(E))
A business is "marginal" if it only generates enough income to support the investor. To pass, your plan must prove Growth and Job Creation.
The Fix: You must provide 5-year financial projections showing the business will make a "significant economic contribution" (i.e., hiring U.S. workers) by Year 3-5.
For more details on this process, see our E-2 Visa CBI Guide for Seamless Immigration.
The "Matter of Ho" Standard: The Secret Benchmark
Although Matter of Ho is an EB-5 precedent, Consular Officers widely apply its rigorous standards to E-2 cases to test "credibility".
To be "Ho-Compliant," your plan must contain:
Verifiable Market Analysis:
Competitor data and local market statistics—no generic guesses.
Granular Personnel Plan:
A specific timetable of exactly when you will hire employees (e.g., "Q3 Year 1: Hire Store Manager at $55k/yr"). This directly counters the marginality trap.
Bases for Projections:
You cannot just list profit numbers; you must explain how you calculated them (e.g., "Based on 15 customers/day at $50 avg ticket").
Permits & Licenses:
A status list of all required operating licenses (obtained or pending).
💡 Need a FAM-Compliant Business Plan?
Writing for a Visa Officer is different than writing for a bank. For the exact structure and financial models we use to secure approvals, read our specialist guide: The E-2 Visa Business Plan.
💰 3. Funding the Business & The "Escrow" Strategy
You must spend the money before you get the visa. This is the "At-Risk" requirement.
The "At-Risk" Rule
The funds must be "irrevocably committed" to the enterprise. Merely depositing money into a U.S. business bank account is not enough because you could withdraw it the next day. You must show the money has left your control (e.g., spent on equipment, inventory, or lease).
The Escrow Solution (Protecting Your Capital)
What if you buy a business for $200,000, but the visa is denied? Do you lose the money?
No. You can use an E-2 visa-compliant Escrow Agreement.
How it Works: You deposit the purchase price into an escrow account. The agreement states that the funds will be released to the seller only if the E-2 visa is approved.
Why it Works: The FAM and the precedent case Matter of Walsh and Pollard explicitly accept this as "irrevocable commitment" because you (the investor) cannot get the money back unless the government denies the visa.
Legal Authority
- 9 FAM 402.9-6(B): "An investment conditioned upon the issuance of the E-2 visa may still qualify if the assets are held in escrow".
- Matter of Walsh and Pollard (BIA 1988): The landmark case establishing that funds in escrow/contingent arrangements are "at risk".
Gathering and organizing documentation is vital. This includes proving your nationality, investment capital, and business intentions. Clear and comprehensive documentation can positively influence the outcome.
🛂 E-2 Visa vs. E-2 Status: Consular Processing or USCIS Change of Status?
One of the most critical strategic decisions you will make is where to apply. The wrong choice can severely restrict your international travel flexibility and business operations.
The E-2 visa is a non-immigrant status, meaning it is intended for temporary stays and does not directly lead to permanent residency.
E-2 Visa Status
E status refers to the legal standing of the visa holder while in the U.S., and maintaining or ending this status is essential for compliance with U.S. immigration law. Visa validity, on the other hand, refers to the duration of the visa stamp in your passport, which may differ from the period of authorized stay granted upon entry and can vary by country.
There are two distinct legal pathways to obtain E-2 classification. While both allow you to work, they offer vastly different rights regarding international travel.
Option 1: E Visa Consular Processing (The "Gold Standard")
This involves applying for an E-2 Visa Stamp at a U.S. Embassy or Consulate in your home country (e.g., London, Toronto, Tokyo).
- The Benefit: If approved, you receive a visa foil in your passport (typically valid for 5 years). This allows you to travel freely in and out of the U.S..
- The Process: You file Form DS-160, submit your binder to the Embassy, and attend an in-person interview.
- Why Experts Prefer It: It aligns with the reality of international business. You cannot "develop and direct" a global trade enterprise if you are restricted from traveling abroad.
Option 2: Change of Status to E-2 Status (The "Domestic" Route)
This involves filing Form I-129 with USCIS while you are physically present in the United States.
The Benefit:
- Speed: You can use Premium Processing to get a decision in 15 business days for an extra fee ($2,805).
- No Interview: You typically do not need to attend an in-person interview.
The Critical Downside: Travel Restrictions.
A Change of Status grants you "E-2 Status" (valid on your I-94), but it does NOT give you an E-2 Visa (the sticker in your passport).
Consequence: If you leave the U.S. for any reason (business, wedding, funeral), you lose your status immediately. To re-enter, you must schedule a consular interview abroad and start the application process effectively from scratch.
E-2 Visa and E2 Change of Status Comparison: Which Path is Right for You?
| Feature |
Consular Processing (Embassy) |
Change of Status (USCIS) |
| Primary Outcome |
Visa Stamp (Travel Permitted) |
I-94 Status (Travel = Abandonment) |
| Validity Period |
Up to 5 Years (Renewable) |
2 Years (Strict limit per approval) |
| Processing Time |
2–4 Months (Varies by Post) |
15 Days (With Premium Processing) |
| Interview? |
Yes (Mandatory In-Person) |
No (Paper-based adjudication) |
| Risk Profile |
High Stakes (Denial = Stuck abroad) |
Safe Haven (Denial = Remain in current status) |
🔥 Hot E-2 Visa Tip: Beware the "Domestic Renewal" Rumor.
You may have heard of a "Stateside Visa Renewal" pilot program. As of 2026, this program was limited to H-1B visas. It does not apply to E-2 investors. Do not plan your strategy assuming you can get a visa stamp inside the U.S.—you cannot.
👥 E-2 Essential Employees: Bringing Your Team to the U.S.
The E-2 visa is not just for the primary investor. E-2 visa holders can bring their spouses and unmarried children under 21 to the U.S. as dependents. These dependents may accompany the principal investor.
Maximum Duration of Dependent E-2 Status
The maximum validity of derivative E-2 visas for spouses and children is determined by reciprocal agreement between the United States and the treaty country; if there is no such agreement, the visa duration defaults to that of the principal applicant.
1. Strict Nationality Requirement: The "Same Nationality" Rule
Before assessing the job role, you must first satisfy the strict nationality rule.
- The Rule: The employee must share the same nationality as the principal treaty investor (or the entity majority owners).
- Ownership Test: If the business is owned by a company, at least 50% of that parent company must be owned by nationals of the treaty country.
- Note: Permanent Residents (Green Card holders) of the treaty country do not qualify; they must be citizens.
2. E-2 Executive & Supervisory Roles: The "Ultimate Control" Test
- The Authority Test: The employee must have "ultimate control and responsibility" for the organization overall operation or a major component of it.
- Key Adjudication Factors: Consular officers will scrutinize:
- The number of employees supervised.
- The level of pay (executives command higher salaries).
- Position in the organizational hierarchy.
Legal Authority:
3. E-2 Visa Specialized Qualifications: The "Essential Skills" Test
This category allows for non-executive staff who possess specialized knowledge vital to the company success.
- The "Specialization" Test: The skills must be specialized and unique—not commonplace or readily available in the U.S. labor market.
- Duration of Status: "Essential skills" are often treated as temporary (strictly for the period needed to train U.S. workers), whereas executive roles can be permanent.
Legal Authority:
📖 The "Secret E-2 Visa Manual" Strategy: Why 9 FAM 402.9 Determines Your Fate
An E-2 visa is processed entirely at a U.S. Consulate outside the United States. USCIS is not involved in an E-2 visa adjudication. The United States Department of State is responsible for determining E-2 visa policies and processing standards.
To succeed, you must understand the specific manual your reviewing non-immigrant visa consular officer is using:
1. Consular vs. USCIS Jurisdiction: Know Your Adjudicator
- The Distinction: Consular Officers do not report to the Department of Homeland Security (USCIS); they report to the Department of State. The USCIS policy manual is therefore not binding in E2 Visa adjudication cases.
- The Consequence: Therefore, they do not follow the USCIS Adjudicator Field Manual. Instead, they strictly follow the Foreign Affairs Manual (FAM). If your lawyer quotes USCIS memos to a Consular Officer, they are citing rules that do not apply to your case.
2. The "Hidden" Math: How FAM Definitions Differ
- Proportionality Examples: The FAM definition of "substantial investment" includes specific mathematical examples for the "proportionality test" (e.g., investing 100 percent of the cost for a low-budget business) that USCIS guidance often lacks.
- Marginality Calculations: The FAM provides distinct instructions on how to calculate "projected future income" to avoid the "marginality" denial trap.
- Risk: If your business plan is written for USCIS standards but read by a Consular Officer using the FAM, you risk a technical denial.
3. Interview Strategy: Master 9 FAM 402.9 to Win
E-2 visa interview preparation, 9 FAM 402.9 guide. Knowledge of the FAM is your strongest weapon during the consular interview.
- The Strategy: The officer behind the glass is using 9 FAM 402.9 as their checklist. If you know their manual better than they do, you can structure your answers to trigger their specific approval requirements.
- Action Item: Read the specific FAM sections related to your weak points (e.g., "Source of Funds" or "Intent to Depart") before your interview.
🔥 Hot E-2 Visa Tip:
Do not fly blind. Access the official 9 FAM 402.9 here. It is the exact instruction manual the officer will be referencing while asking you questions.
⚠️ Consular Processing Rules: Embassy-Specific Pitfalls
Every U.S. Embassy has unique "Local Rules" that supersede general USCIS guidelines. Ignoring these leads to instant rejection.
- U.S. Embassy London: Strictly enforces a "Tab A – Tab J" format. Applications must be submitted as a single PDF under a specific file size limit (often 10MB).
- U.S. Consulate Toronto: Often bifurcates "New Cases" vs. "Renewals." They may reject files sent via zip folders or cloud links.
- U.S. Embassy Paris: Has historically enforced a strict 50-page limit for the core legal brief and evidence.
🔥 Hot E-2 Visa Tip:
Ignoring local rules is one of the fastest paths to denial.
If you are interested in a career in immigration law, consider applying for a part-time immigration paralegal position at Davies & Associates LLC.
💸 E-2 Visa Cost Breakdown & Fees (2026)
The cost of an E-2 visa is divided into two categories: Sunk Costs (fees you pay to the government and service providers) and Investment Capital (money injected into your U.S. business).
1. Estimated "Sunk Costs" foe E-2 (Non-Recoverable Costs)
These are the administrative and legal costs required to prepare and file your case.
| Item |
Estimated Cost |
Who You Pay |
Insider Note |
| DS-160 (MRV) Fee |
$315 per applicant |
U.S. Dept of State |
Non-refundable. Paid before scheduling your interview. |
| Reciprocity Fee |
$0 – $3,500+ |
U.S. Embassy |
Only paid if approved. Varies by nationality (e.g., UK = $0, Australia = $3,500+). |
| Immigration Business Plan |
$2,500 – $5,000 |
Specialist Writer |
Critical for passing the "Marginality" test. |
| State Entity Formation |
$200 – $800 |
State Secretary |
Varies by state (e.g., Delaware vs. California). |
| Legal Fees |
Varies |
Immigration Counsel |
Depends on complexity (e.g., buying a business vs. startup). |
| Premium Processing |
$2,805 |
USCIS |
Optional. Only available for Change of Status within the U.S. (Form I-129). |
2. Investment Capital (Your Business Funds)
Unlike the fees above, this money is not lost—it is working capital used to launch your business.
| Item |
Estimated Amount |
Note |
| Minimum Investment |
$100,000+ (Recommended) |
While there is no legal minimum, investments below $80k face high scrutiny under the Proportionality Test. |
| "At-Risk" Commitment |
100 percent of Investment |
Funds must be spent or held in a binding Escrow Account before the visa interview. |
💡 Pro Tip: The "Reciprocity" Variable
The Visa Issuance Fee (Reciprocity Fee) is based on what your country charges U.S. citizens for a similar visa.
- UK & Canada: $0
- Australia: ~$3,500+
Check your fee: You can look up your specific country fee on the Department of State Reciprocity Table.
🔗 Read more: Deep Dive into E-2 Visa Costs and Fees: Understanding the Difference Between "Sunk Costs" and "Investment Capital".
🔄 E-2 Visa Renewal: Extending Your U.S. Business Success
One of the greatest advantages of the E-2 visa is that it can be renewed indefinitely, as long as the business remains active and profitable. However, a renewal is not automatic; it is a re-adjudication of your entire case.
The "Marginality" Test at Renewal: The most common reason for renewal denial is failing to prove the business grew enough to support U.S. workers, not just the investor.
Legal Authority:
- The Statute (INA): INA § 101(a)(15)(E)(ii) – Authorizes status as long as you are "developing and directing" the enterprise.
- The Regulations (8 CFR): 8 CFR § 214.2(e)(20) – Governs extensions of stay and maintenance of status.
- Dept of State Guidance (FAM): 9 FAM 402.9-4(C) – Confirms there is no limit on the number of extensions, provided the alien intends to depart when status ends.
💡 Renewal Strategy Center
Renewals have different pitfalls than initial applications (e.g., proving "substantiality" after money is already spent). For a complete guide on handling RFEs and financial document checklists for extensions, visit our specialist page: E-2 Visa Renewal Guide.
🛣️ The "E-2 to Green Card" Roadmap
Context: Users often search “Does E-2 lead to Green Card?” This section clarifies the transition strategy, addressing the “non-immigrant intent” fear using the legal nuances found in your text.
The E-2 visa is a non-immigrant visa that allows investors and their families to live and work in the United States. However, it is important to note that the E-2 visa does not directly lead to permanent residence (a Green Card). While the E-2 is a temporary, renewable status, it can serve as a stepping-stone to other immigrant pathways that may ultimately result in permanent residence.
Can I Transition from E-2 to a Green Card?
A common misconception is that the E-2 visa is a "dead end" because it does not directly grant a Green Card. While it is legally a "non-immigrant" visa, you can transition to permanent residency without losing your E-2 status, provided you follow a specific legal strategy.
The EB1-C/L1-A Myth and the E2 Visa
There is a common misconception that the EB1-C route to a “Green Card” is not available to E-2 visa holders. This is simply false. While the L1A visa has similar criteria to EB1C there is no regulation or law favoring an L1A visa holder over an E2 visa holder.
The "Dual Intent" Doctrine
What is the “Dual Intent” Doctrine?
“Dual intent” allows the holder of a non-immigrant visa to simultaneously peruse that visa and US permanent residency. The holder of any visa is not prohibited from later pursuing a “green card”. “Dual intent” refers to simultaneous pursuing non-immigrant status while intending to become a Permanent Resident of the United States.
Is the E2 Visa a Visa of “Dual Intent”?
Unlike the H-1B or L-1, the E-2 does not have full "dual intent". However, the Foreign Affairs Manual (9 FAM 402.9-4(C)) allows for a unique exception:
- You can have a Green Card petition pending and still renew your E-2 visa.
- The Condition: You must satisfy the consular officer that you have an "intent to depart" the U.S. if your Green Card application is denied.
2. The EB-5 Direct Transition
Many E-2 investors eventually upgrade to the EB-5 Immigrant Investor Visa.
- How it works: As your E-2 business grows, if your investment reaches the EB-5 threshold (typically $800,000+) and creates 10 full-time jobs, you may apply for the Green Card.
- Why it is powerful: You can run the business on an E-2 visa (which is faster to get) while building up the necessary capital and jobs to qualify for the EB-5 later.
3. Other Indirect Pathways
While the E-2 itself is not a Green Card path, it provides the platform to pursue other options (such as spousal sponsorship or other employment categories) as long as you maintain the "intent to depart" upon termination of status.
🏆 E-2 Visa Business Examples & Success Stories
- The Tech Pivot (AI Startup):
- Investment: $120,000 (Software IP + Cloud Infrastructure).
- Outcome: Approved. The "value" of the intellectual property was key to meeting the threshold.
- The Franchisee (Fitness Studio):
- Investment: $250,000 (Franchise fee + Equipment).
- Outcome: Approved. Franchises are often lower-risk because the business model is proven.
- The Consultant (Marketing Agency):
- Investment: $75,000 (100 percent of startup capital).
- Outcome: Approved. For low-capital businesses, investing 100 percent of the required funds is the winning strategy.
🏛️ Official E-2 Visa Legal Authority & Citations
- The Statute: INA § 101(a)(15)(E)(ii) – Defines the E-2 category for those "solely to develop and direct" operations.
- The Regulations: 8 CFR § 214.2(e) – Details "marginality" and "substantial" rules.
- The "Bible" for E-2 Visa Interviews: 9 FAM 402.9 – The manual Consular Officers use to adjudicate your case.
- Change of Status: USCIS Policy Manual, Vol 2, Part G – For applicants filing Form I-129 from within the U.S..
👨👩👧👦 E-2 Visa Family Members: Spouses & Children Benefits
The E-2 visa is not just a pathway for the principal investor—it also extends significant benefits to immediate family members. This means your spouse and unmarried children under 21 can join you in the United States, making the E-2 visa an attractive option for treaty investors seeking to relocate with their loved ones.
Who Qualifies and an E-2 Dependent?
- Spouse: The legally married spouse of the principal investor qualifies for E-2 dependent status. There is no requirement for the spouse to be of the same nationality as the principal investor, but the marriage must be legally recognized.
- Unmarried Children: Only unmarried children under the age of 21 are eligible for E-2 dependent visas. Once a child turns 21 or marries, they no longer qualify as a dependent under the E-2 category.
- Nationality Requirement: While the principal investor must be a national of a country that maintains a qualifying treaty investor agreement (treaty country) with the United States, dependents are not required to hold the same nationality. However, all family members must apply as dependents of the principal E-2 visa holder.
Family members can accompany the principal investor to the U.S. at the time of the initial application or join later by applying for E-2 dependent visas at a U.S. consulate. This flexibility allows treaty investors to plan their move according to their family’s needs.
Key E-2 Takeaways for Families:
The E-2 visa provides a clear path for spouses and unmarried children under 21 to live, study, and, in the case of spouses, work in the United States, as long as the principal investor maintains valid E-2 status. This makes the E-2 visa a family-friendly option for those seeking to build a future in the U.S. through investment in a bona fide enterprise.
❓ Frequently Asked Questions (E-2 Visa FAQ)
What is the minimum investment for an E-2 visa?
There is no fixed minimum dollar amount in the INA, but the investment must be “substantial” relative to the business type.
- The "Proportionality Test": For lower-cost businesses, you may need to invest 100% of the startup costs to qualify. For higher-cost enterprises, a lower percentage is acceptable.
- Legal Authority:
Can I use a loan to fund my investment?
Yes, BUT the loan cannot be secured by the assets of the E-2 business itself (because then your capital is not “at risk”).
- The Rule: You must use a personal loan secured by your personal assets (e.g., a mortgage on your home abroad) or an unsecured personal loan. The business assets cannot be collateral.
- Legal Authority:
- 9 FAM 402.9-6(B) – States that indebtedness secured by the enterprise’s assets does not count as investment.
- 8 CFR § 214.2(e)(12) – Requires funds to be “irrevocably committed” and subject to loss.
Can my spouse work in the U.S.?
Yes. Spouses of E-2 investors are authorized to work in the United States and do not need to apply for a separate Employment Authorization Document (EAD). Their status alone is evidence of work authorization.
Does the E-2 visa lead to a Green Card?
Not directly. The E-2 is a “non-immigrant” visa, meaning you must intend to depart when your status ends. However, you can transition to a Green Card through other pathways without losing your E-2 status, provided you maintain an intention to depart if the Green Card is denied.
- Legal Authority:
- 9 FAM 402.9-4(C) – Clarifies that an applicant can have an “intent to depart” even while a Green Card petition is pending (the “Doctrine of Dual Intent” lite).
- 8 CFR § 214.2(e)(5) – Requires the investor to maintain the intent to depart the U.S. upon status termination.
What defines a “Marginal” business?
A business is “marginal” if it only generates enough income to support you and your family. To get approved, your business must have the capacity to make a “significant economic contribution” (i.e., hire employees) within 5 years.
How is the E-1 visa different from the E-2 visa? What is “substantial trade”?
The E-1 visa is based on “substantial trade,” which refers to a broad range of continuous and numerous business transactions between the U.S. and the treaty country. There is no strict minimum value, but the trade must be ongoing and significant. This is distinct from the E-2 visa, which is based on a substantial investment in a U.S. business.
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Attorney Credentials (Mark I Davies, Esq.)
Mark I Davies, Esq. JD, University of Pennsylvania Law School, Licensed with the SRA (SRA ID: 384468) in the UK, Member Law Society of England & Wales, MBA, Wharton School of Business. Top 10 Investment Visa Lawyer, Licensed (USA), Georgia State Bar. AILA Member.
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Details |
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Education
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JD, University of Pennsylvania Carey Law School | MBA (Finance), The Wharton School, University of Pennsylvania | Chartered Accountant (ICAEW) |
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Financial Training
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Completed Analyst Training Program at a major international bank | Chartered Accountant background with professional training in financial analysis and reporting |
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Legal Practice
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Admitted to practice in Georgia (USA) | Registered Solicitor with the Law Society of England & Wales | Former CMBS lawyer at one of the world’s largest international law firms |
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Immigration Track Record
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15+ years advising HNW investors |
Zero denials for clients advised on source-of-funds compliance in EB-5 | Hundreds of successful EB-5 cases globally
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Recognition
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Named a
Top 25 EB-5 Immigration Attorney by EB5 Investors Magazine (2018–2023)
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Professional Engagements
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Lecturer/trainer for other lawyers at AILA, ACA, University of Pennsylvania Law School | Frequent speaker at global investment immigration conferences |
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