Immigrants who want to invest in and run a business in the United States have the option of applying for an E-2 visa. However, it isn’t enough to simply have the money to invest; you also need to provide an E-2 visa business plan with your application. The USCIS will review this business plan, which will have a significant impact on whether or not your application is approved or denied. Keep reading to find out what the USCIS will look for in an E-2 visa business plan and the elements that every E-2 business plan should include.
Why the Business Plan Matters
There are several things that you need to include when you apply for an E-2 visa, one of which is a business plan. And in the majority of cases, your business plan can make or break your application.
Firstly, the business plan helps to demonstrate bona fide enterprise, which shows that the business is legitimate and operational. This helps to take it from being just an idea to an actual operating entity that has growth potential.
The business plan also helps to prove that the investment is substantial and outlines how the invested funds will be used to expand growth.
If you are planning on applying for an E-2 visa, it’s essential that you get the help of an immigration attorney. Applying for this type of visa is notoriously complex, as there are many requirements and several elements that the USCIS will look into. An attorney can help you create a strong application, as well as develop a business plan that meets all of the USCIS’s requirements.
Business Plan Elements That the USCIS Checks
A common misconception about the E-2 visa requirements is that it is often left up to chance, especially when it comes to the business plan. But the reality is that the USCIS does not simply review business plans to determine whether it likes them or not. Instead, the USCIS will look for answers to four very specific questions to determine whether the application is strong enough to be approved.
- Substantial investment: For an E-2 visa application to be approved, the investment needs to be substantial, completely committed to the business, and at risk. So, the investment needs to already be strongly tied to the business, making it ready to launch. Keep in mind that there is no specific amount that is considered to be substantial, as this depends on the cost of the individual business.
- Non-marginality: The USCIS will perform a marginality test, which tests to see if the business has room for growth in the U.S. This is because E-2 businesses are expected to grow over time, not just support the investor and their family.
- Treaty-country compliance: The E-2 investor will need to be a citizen of a treaty country, which also means that the business needs to meet the treaty-country ownership requirement. The USCIS will also check to see if the investor controls the vast majority of the business, ideally owning at least 50%.
- Bona fide enterprise: As we mentioned above, it’s important to prove that this is a bona fide business, not just an idea or a dream. So, the business needs to already be established and active, ideally already turning a good profit.
Key Elements of a Strong E-2 Business Plan
Now that you know what the USCIS looks for in E-2 visa applications, how do you create a strong treaty investor business plan? For many applications, the business plan plays a significant role in establishing the validity and the eligibility of the business. And in many cases, you can avoid running into common E-2 issues by having a thorough business plan that answers all of the USCIS’s questions directly.
Here is a basic breakdown of the key elements that a strong E-2 visa startup business plan should include for the best chance of approval.
Executive Summary
Your executive summary should include an overview of the business, the business objectives, and its mission. This section should also touch on the total capital investment that has been committed, the projected revenue growth, and the estimated development timeline of the business.
It’s also a good idea to include hiring and job creation plans, specifically the number of jobs you expect to create.
Organizational Structure
In the organizational structure section, you should include legal entity details, ownership percentages, and your background and qualifications as the business’s founder. You can also include details regarding others who are already part of the business, including staff and management.
Market Analysis
The market analysis section is incredibly important as it establishes the market value of the business and the projected growth potential. This section should also establish a competitive analysis and the current demand in the U.S. for the business.
You should include a SWOT analysis, which is an appraisal of the business’s strengths, weaknesses, threats, and opportunities. Additionally, you can address the U.S. market or regions you are targeting and your expansion plan.
Investment Summary
A strong investment summary should include things like revenue forecasts, expense projections, and break-even analysis. You will need to show documented proof of funds and evidence of irrevocable commitment, which establishes that the investment is at risk.
It’s also beneficial to include information regarding ongoing funding and contingency plans, as well as an honest assessment of financial risk and vulnerability.
Hire an Immigration Attorney Today
Are you worried that your business plan doesn’t meet the E-2 visa application requirements? Contact us today at U.S. Immigration Law Counsel at 800-666-4996 to speak with an immigration attorney about your situation. We will deal with the government, so you don’t have to!
FAQ Section
Is a business plan required for every E-2 application?
The USCIS does not explicitly require a business plan, but it is strongly recommended and usually expected.
How many years of projections should be included?
Five-year projections are the most common.
Can a startup business qualify for an E-2 visa?
Yes. As long as the startup business meets the USCIS requirements, it can qualify for an E-2 visa.
