Investors and Traders: Requirements for E-2 Visas - Substantial Investment

If the U.S. sponsoring company wishes to qualify as a treaty investor company, the investment in the United States must be substantial and the source of the investment must be lawfully acquired.

Substantial investment is defined as an “at-risk” capital investment made to generate a profit. The investment must either have been made or the investment is actively in the process of being made. The investment must be a substantial portion of the total value of the business or start-up costs of the business in the United States and must be sufficient to make the business viable. There is no minimum investment required for E-2 purposes. However, the amount of investment necessary to qualify for E-2 classification is determined by the type of business. The investment cannot be the main source of income for an individual investor.

Loans that are not secured by the business investment can be utilized to show substantiality of the investment. Further, non-cash assets such as intellectual property, inventory, real estate, etc. can be considered as invested capital for E-2 purposes.