Ask ten people how much an E-2 needs and you will hear ten numbers, usually somewhere between US$100,000 and US$200,000. None of them is the law. US immigration rules require a "substantial" investment without fixing an amount, and consular officers apply a set of tests to decide whether a particular investment in a particular business qualifies.
Understanding those tests matters more than any rule of thumb. A Grenadian national with a carefully structured US$90,000 investment in a low-cost service company can be in a stronger position than someone who wires US$300,000 into a vague project. This page sets out how the substantiality, at-risk and marginality tests work, as generally applied at the time of writing, and where applicants most often go wrong. The details are fact-specific, so a US immigration attorney should review any structure before money moves.
The proportionality test
Officers compare the amount invested with the total cost of either buying the business or establishing it. The smaller the total cost, the higher the share the investor is expected to have put in. For a modest business, an investor who has funded nearly all of it is in a strong position. For a very expensive enterprise, a lower percentage can still be substantial in absolute terms.
Total cost means the realistic cost of a business of that type, not a figure chosen to make the percentage look good. For a purchase, it is normally the purchase price. For a new venture, it is what is needed to make the business operational: equipment, fit-out, inventory, initial rent and other start-up costs.
Officers also ask whether the money is enough to ensure the investor is committed to the business's success and that the business can actually function. An amount that technically covers most of a tiny cost base, but leaves the business unable to trade, will not persuade anyone.
At risk and irrevocably committed
Spent or committed. Funds sitting in the investor's personal account do not count. The money should have been spent on the business, or placed so that it will be released to the business automatically once the visa is issued.
Escrow arrangements. For purchases, an escrow agreement under which funds pass to the seller if the visa is approved, and return to the investor if it is refused, is a recognised way to commit money without losing it on a refusal.
Genuine risk. The investor must stand to lose the money if the business fails. Guaranteed returns, buy-back promises or arrangements that shield the capital from loss can undermine the claim.
Debt rules. Loans secured by the business's own assets generally do not count as the investor's investment. Personal loans secured on the investor's own property, such as a mortgage on a home in Grenada, can count because the investor carries the risk.
Source of funds and the paper trail
Officers want to see that the money is the investor's own and was obtained lawfully. That means tracing it from its origin, such as salary, the sale of a business, the sale of property, an inheritance or a documented gift, through every account it passed through, to the US business.
Investors who came to Grenadian citizenship through the investment programme have already been through due diligence once, but US officers do not rely on another government's checks. They will expect their own clear evidence. Records that worked for the Grenadian application are a useful starting point, but the US file should cover the specific funds used for the business.
Gaps cause delays. Cash deposits without explanation, transfers routed through relatives or third parties, and funds that move between many accounts in a short time all invite questions. Gifts are acceptable if they are documented and the donor's own funds can be shown to be legitimate.
The marginality test
A qualifying enterprise must not be marginal. In the regulations, a marginal enterprise is one that does not have the present or future capacity to generate more than a minimal living for the investor and family. An E-2 business is meant to have a real economic impact, not merely to support the investor's stay.
For a new business, officers look at projections in the business plan, commonly over about five years. A credible plan shows revenue growing to a level that pays more than a modest living, or shows hiring of US workers, or both. Vague hopes are not enough; projections should rest on local market data, realistic pricing and sensible staffing.
Job creation is not a strict legal requirement, but it is the clearest evidence that a business is not marginal. A plan that relies entirely on the investor's own labour, with no staff and thin margins, faces a harder interview.
Investments that commonly fail the tests
Officers see the same weak structures again and again, and none of them is rescued by a large number on a bank statement. The following patterns regularly cause trouble, whatever the amount involved, and are worth ruling out before any money is transferred:
- Undeveloped land, shares, bonds or a portfolio of rental homes managed by an agent: passive investments, not operating enterprises.
- A business that exists mainly on paper, with no lease, no equipment and no real trading activity yet in sight.
- Money transferred to the US business account but not spent or committed, which can still be withdrawn at will.
- Funds borrowed against the US business itself, or provided by the seller with no personal liability on the investor.
- A franchise or acquisition where most of the price comes from a partner who is not a Grenadian national.
- Projections showing the business will only ever cover the investor's own modest salary.
Buying a business versus starting one
The tests are the same for both, but the evidence differs. An acquisition comes with tax returns, payroll records and a trading history, which make marginality easier to judge. The officer will want to see that the price was reached at arm's length, often supported by an independent valuation or broker assessment, and that the seller is genuinely handing over control.
A start-up has no history, so the plan and the spending carry the weight. Officers look for a signed lease, equipment bought or contracted, licences applied for and a sensible reserve. The earlier the stage, the harder it is to show the funds are irrevocably committed.
Investors sometimes combine both, buying a small existing business and expanding it. That can work well, because the existing revenue demonstrates viability while the expansion plan shows growth and hiring. Whatever the model, keep contracts conditional on visa approval where possible, so a refusal does not leave the investor bound to a business they cannot run.
Practical ways to strengthen an application
Choose a business whose cost and revenue model you can explain without notes. Officers often ask simple questions: who are your customers, what will you charge, who will you hire and when will you break even. An investor who understands the numbers makes a far better impression than one reciting a consultant's plan.
Invest more than the bare minimum where you can, and spend it visibly: signed lease, equipment invoices, licences, a working website and initial marketing. Keep a separate business bank account and a clear ledger linking each dollar to a business purpose.
Finally, keep working capital in reserve. A plan that spends every dollar on set-up leaves nothing for the first difficult months, and officers notice that. Ask your attorney how much documented reserve your type of business should show, and confirm current practice at the post that will hear your case.
Above all, avoid structures designed only to pass the tests on paper. Officers see artificial arrangements regularly, and a business built to operate for real is easier to defend at the first interview and at every renewal.
Frequently asked questions
Is US$100,000 enough for an E-2 visa?
It can be for a business whose total cost is close to that amount, if the investor funds most of it and the plan is credible. It can be too little for a costlier enterprise. Proportionality and marginality decide the answer, not a fixed figure.
Can a Grenadian investor borrow money for an E-2?
Yes, if the investor carries personal liability, for example through a loan secured on their own home. Loans secured only on the US business's assets generally do not count towards the investment. An attorney should review loan terms first.
Does the investment have to be spent before the interview?
It must be spent or irrevocably committed. Many applicants spend most funds on set-up costs and place the remainder in escrow or binding contracts. Money that can still be withdrawn freely usually does not count as committed.
Can family gifts be used for the investment?
Documented gifts are generally acceptable. Officers expect a gift letter, proof of transfer and evidence that the donor's funds were lawfully earned. Large undocumented family transfers are a common source of delays and refusals.
Does the business need to hire American workers?
There is no fixed hiring quota, but staff are the clearest sign a business is not marginal. Plans that show hiring US workers over the first few years are generally received better than single-person operations.
Can an existing business be bought instead of starting one?
Yes. Buying an established business is common because it comes with trading history. Officers still check that the price is fair, the investor will direct it, and the business generates more than a minimal living.
