Filing an E-2 investor visa application demands careful attention to every detail. You can meet every listed requirement and still face a denial if the details don’t line up the way the reviewing officer expects.
Most refusals aren’t caused by bad business ideas or lack of effort. They happen when evidence is incomplete, when numbers don’t match, or when the file leaves questions unanswered. The process rewards clarity, not assumption.
This guide breaks down the seven most common reasons E-2 applications are denied, using realistic examples of how those issues appear in actual cases. Each section explains the official rule behind the problem and shows how to document it correctly so your investment and your intent come through without confusion.
The investment is not substantial
Scenario
An applicant plans a neighborhood café. The business plan shows startup costs of about $180,000 for build-out, equipment, initial inventory, and operating cash. Only $35,000 has actually been spent and another $15,000 is sitting in a business account. The lease is still unsigned because the applicant wants to wait for visa approval. At the interview, the officer notes that the café cannot realistically open with the current level of spending. The case is refused for lack of a substantial investment.
What the rule says
There is no fixed minimum amount for an E-2 investment. It simply needs to be substantial in proportion to the total cost of starting and operating the business, showing that the enterprise can realistically begin functioning.
How to avoid it
- Price the real startup costs with vendor quotes and a contractor estimate.
- Spend or irrevocably commit enough of the budget to show the business can open.
- Include proof such as paid invoices, wire receipts, executed contracts, and a signed lease or landlord commitment.
- Explain any remaining gaps and show how they will be covered at a specific time.
The business is not active or real
Scenario
An applicant forms a limited liability company (LLC), opens an account with $90,000, builds a website, and prints menus. There is no signed lease, no equipment purchase, and no supplier on board. When an officer reviews the file, there is activity on paper but nothing that shows the business is operational or ready to start trading within days. The application is refused because the enterprise is not demonstrated as real and active.
What the rule says
An E-2 enterprise must be a real, operating commercial undertaking that provides goods or services. Paper entities and purely preparatory steps do not satisfy the requirement without credible evidence that operations are set to begin.
How to avoid it
- Show readiness to operate with a signed lease, utilities set-up, and occupancy or health permits where applicable.
- Include supplier contracts, merchant processing approval, and initial invoices or purchase orders.
- Provide dated photos of the premises, equipment delivery receipts, and a launch timeline with specific dates.
The funds are not at risk
Scenario
An applicant wires $220,000 to the U.S. business account. The money has not been spent because the applicant plans to order equipment after the visa is issued. A refundable escrow is set up with a vendor. The money is parked and can be pulled back without loss. The case is denied because the investment is not at risk.
What the rule says
Capital must be irrevocably committed and subject to partial or total loss for the purpose of generating profit. Funds that are idle, refundable, or contingent on visa approval generally do not qualify.
How to avoid it
- Replace refundable arrangements with binding contracts that only refund if a business-related condition fails, not if the visa is refused.
- Document non-refundable deposits, equipment purchases, franchise fees, or build-out payments already made.
- Show bank statements that tie each outgoing payment to a specific business need.
The business is marginal
Scenario
An applicant proposes a solo consulting practice with projected revenue of $65,000 in year one and $80,000 in year two. The plan shows the income will cover personal living costs but does not include hiring, subcontractors, or growth that benefits the U.S. economy. At the interview, the officer asks about future jobs and receives general answers with no dates or numbers. The case is refused as a marginal enterprise.
What the rule says
A marginal enterprise is one that lacks the present or future capacity to generate more than a minimal living income for the investor. Officers look for credible evidence of growth and job creation, typically within five years.
How to avoid it
- Provide a five-year plan with detailed revenue, expense, and payroll tables.
- Include a hiring schedule with positions, wages, and target dates, even if modest at first.
- Add letters of intent or contracts that support forecasted work and staffing.
- Show how reinvestment will expand capacity beyond your own labor.
The applicant’s nationality does not qualify
Scenario
An applicant with dual citizenship applies using a passport from a country without an E-2 treaty. The file includes a significant investment and a strong plan. The officer refuses the case without reaching the merits because the presented nationality is not treaty-eligible.
What the rule says
Only nationals of countries with which the United States maintains a qualifying treaty, or that are designated by legislation, may receive E-2 visas. Dual nationals must qualify based on the nationality under which they apply.
How to avoid it
- Confirm treaty eligibility on the official list before you invest or file.
- If you hold more than one nationality, apply with the qualifying passport and keep nationality evidence consistent across all forms and supporting documents.
- If relying on a newly added treaty country, include a printout of the updated list in your package.
The source of funds is not clearly proven
Scenario
An applicant invests $175,000. The business account shows large deposits over two months, but the file contains only summary bank statements. There are no tax returns, sale contracts, or inheritance records. The officer cannot trace the money from the origin to investment and refuses the case.
What the rule says
Investment capital must be obtained by lawful means and must be traceable from its source to the U.S. enterprise. Officers need a clean, document-by-document trail, not just balances.
How to avoid it
- Build a ledger that links every deposit to a document, such as tax returns, a business sale closing statement, property deeds, or inheritance papers.
- Include bank statements that show the path of funds between accounts and the final transfer into the U.S. business.
- Translate and authenticate foreign documents where required and keep dates consistent with your timeline.
The applicant does not show intent to depart
Scenario
An applicant explains a plan to grow the company and eventually apply for permanent residence. The officer asks what will happen if the E-2 status ends. The answer is uncertain. There is no evidence of property, family responsibilities, or business ties abroad. The case is refused for failure to show intent to depart when the E-2 status ends.
What the rule says
The E-2 is a non-immigrant visa. Applicants must intend to depart the U.S. when their E status ends, even though the visa can be renewed. Officers evaluate credibility based on the full record and interview.
How to avoid it
- Provide proof of ongoing ties outside the U.S., such as real estate ownership, a long-term lease, family obligations, or a role in a foreign business.
- Avoid statements that suggest permanent residence is the immediate goal of your E-2 application.
- If you have U.S. immigration plans that are long-term or conditional, keep the focus on compliance with the temporary E category.
Sources:
- U.S. Citizenship and Immigration Services (USCIS). https://www.uscis.gov/working-in-the-united-states/temporary-workers/e-2-treaty-investors
- U.S. Department of State – Bureau of Consular Affairs
https://travel.state.gov/content/travel/en/us-visas/employment/treaty-trader-investor-visa-e.html - U.S. Department of State – Visa Information Resources
https://travel.state.gov/content/travel/en/us-visas/visa-information-resources/fees/treaty.html