This is undoubtedly the $64,000 question. I’ll try and walk you through US Immigration’s thinking on this.

“[E2] solely to develop and direct the operations of an enterprise in which he has invested, or of an enterprise in which he is actively in the process of investing, a substantial amount of capital”

US Immigration under their Foreign Affairs Manual (FAM) actually says that:

“No set dollar figure constitutes a minimum amount of investment to be considered – substantial for E2 purposes. This requirement is met by the - proportionality test.”

Before I discuss what the proportionality test is all about let me first also mention the point that there are other US immigration articles that also say that the word ‘substantial’: -

“[Shall] not be interpreted to discourage particular types of investment or necessarily exclude small traders or investors…….. What constitutes a substantial investment is a relative matter and is not determined alone by size of investment.”

So basically the picture beginning to emerge here is that when considering what might constitute a substantial investment it really depends upon the type of business being invested in. Different types of businesses require vastly different amounts of investment. This is the doctrine of proportionality.

An Example of a Proportionality Case:

In the Matter of Walsh and Pollard decided in February 1988 (a precedent case), the Department of State overturned a US Immigration (INS) decision that had insisted that the “substantial ” investment be a minimum dollar amount rather than following the doctrine of proportionality. In that case, the issuance of two E2 visas were for two designers who wanted to set up a company in the US. The total investment involved the hiring of two US employees, renting an office, the purchase of office furniture and opening a bank account with a deposit of $15,000.00. As the board found the enterprise to be functioning profitably, it was satisfied that the amount invested was sufficient to establish a viable business; the Board of Immigration Appeals determined that the proportionality test was met and the visas were granted.

Although this was a landmark case most immigration attorneys will still prefer their clients to be making investments well in excess of $100,000.00 regardless of the nature of the investment to ensure a smoother passage through the application process.

Note: The State Department considers that investments of $1-2 million would usually be considered substantial in any event regardless of business enterprise.

E2 Visa - Buying A Business