Six Common Reasons for E-2 Investor Visa Denial
Understanding the Factors That Can Lead to a Rejection
The E-2 Treaty Investor visa is a valuable pathway for entrepreneurs and investors from treaty countries to enter and operate in the United States. Nevertheless, securing approval for an E-2 visa is far from guaranteed. The U.S. Department of State and U.S. Citizenship and Immigration Services (USCIS) apply strict criteria to ensure only qualified applicants are granted this privilege. There are several reasons why an E-2 visa may not be approved, ranging from technicalities and documentation errors to broader concerns about the nature of the investment or the applicant’s intentions.
1. Failure to Meet Treaty Requirements
Treaty Country Status:
The E-2 visa is available only to nationals of countries that maintain a qualifying treaty with the United States. If the applicant’s country of citizenship is not on the list of treaty countries, the application will be denied outright. Furthermore, if the applicant cannot provide sufficient documentation proving their nationality, or if dual citizenship complicates the matter, this can result in denial.
2. Insufficient Investment Amount
Substantial Investment:
The E-2 visa requires a “substantial” investment in a U.S. business. While there is no fixed dollar minimum, the investment must be significant enough to ensure the successful operation of the enterprise. In practice, investments under $100,000 are often scrutinized and may be considered inadequate unless justified by the nature of the business. Applicants cannot demonstrate that their investment is substantial relative to the total cost of the business risk denial.
Marginality of the Enterprise:
If the investment is considered “marginal”—meaning it is unlikely to generate more than enough income to provide a minimal living for the investor and their family—the application may be rejected. USCIS seeks evidence that the enterprise will create jobs or have a positive economic impact beyond the applicant’s immediate family.
3. Source and Legitimacy of Funds
Unclear or Unlawful Source of Funds:
Applicants must prove that the funds invested were acquired through lawful means. Failure to provide documentation, such as bank statements, tax returns, or sale contracts, showing how the funds were earned can trigger a denial. If there is any suspicion that the capital comes from illegal activities or cannot be traced clearly, the visa will not be granted.
4. At-Risk Investment Requirement
Funds Not Truly at Risk:
The investment must be “at risk” in the commercial sense; simply holding funds in a business bank account, or promising future funding, does not satisfy the requirement. The applicant must show they have already committed substantial resources and that these resources are at risk of loss should the business fail. Escrow arrangements, contingent investments, or uncommitted capital are often grounds for denial.
5. Investor is not in a position to develop and direct the enterprise
Be seeking to enter the United States solely to develop and direct the investment enterprise. This is established by showing at least 50% ownership of the enterprise or possession of operational control through a managerial position or other corporate device.
