Not every dollar spent on a business counts toward the E-2 Treaty Investor Visa investment requirement. Understanding which expenses qualify prevents costly mistakes during the application process.
The U.S. Citizenship and Immigration Services (USCIS) evaluates investment capital based on three criteria: the funds must be at risk, already committed or spent, and directly connected to business operations. Money held in reserve or personal expenses do not meet this standard.
Pre-Opening Commitments
Commercial lease agreements are among the most straightforward qualifying expenses. When you sign a lease and pay first month’s rent, last month’s rent, and a non-refundable security deposit, those funds are committed. The lease itself and payment records prove you have secured a business location and cannot easily withdraw.
If you are buying an existing business, the purchase price counts as investment capital. This includes what you pay for goodwill, customer lists, and other intangible assets that come with the sale. You will need the signed purchase agreement and wire transfer confirmations or bank statements showing the funds moved.
Franchise fees work the same way. Only non-refundable payments count. The initial fee and required training costs qualify. Ongoing royalties paid after opening are considered operational expenses.
Physical Setup and Equipment
Leasehold improvements include any modifications made to rented space. New flooring, partition walls, upgraded electrical work, and improved plumbing all qualify if you can show contractor agreements, invoices, and proof of payment.
Equipment purchases depend on what your business actually needs to operate. A restaurant investor buying ovens and refrigerators has qualifying expenses. So does someone starting a consulting firm who purchases computers and office furniture. Keep the invoices and receipts. If you lease equipment, it may still count if the lease is irrevocable and payments have been made.
Inventory matters for businesses that sell products. It must be purchased and delivered, not just ordered. Supplier invoices, shipping documents, and payment records all support this. If inventory is bought on credit, only what has been paid counts until the full amount is settled.
Business licenses, health permits, professional certifications, and regulatory fees required before you can open also qualify.
Working Capital Requirements
Working capital covers what you need to run the business before it turns profitable. This includes payroll, utilities, ongoing rent, insurance, marketing, and supplies. USCIS recognizes that businesses need operating funds, but you must document why you are holding that money.
Having cash in a business bank account is not enough. You need to tie those funds to specific operational needs that will arise soon. Your business plan should show projected expenses, and you should have signed employment agreements showing payroll commitments, insurance policies with premiums due, and similar obligations that prove the funds are allocated.
How much working capital is enough? Most businesses show three to six months of operating expenses covered, but this varies by industry and location.
What Does Not Count
Your personal rent, groceries, car payment, and health insurance do not qualify, even though you need those things to live in the United States. USCIS draws a clear line between business and personal expenses.
Refundable deposits are excluded because the money is not truly at risk. If your landlord will return the security deposit when the lease ends, do not include it in your investment total.
Money sitting in a business account does not qualify unless you can explain its purpose and when it will be spent. An investor with $100,000 in a business account but no supporting documentation will not receive credit for that as invested capital.
Promissory notes and informal loans you make to your own business rarely count. If you could cancel the loan or withdraw the funds, the capital is not at risk. Even formal loans are examined closely unless they are properly documented and legally enforceable.
Your time and effort do not qualify either. USCIS calls this sweat equity, and while it has practical value, the E-2 visa requires actual monetary investment, not labor.
Documentation Requirements
USCIS officers decide based on what they can verify through documentation. Your bank statements must show where the money came from and how it moved into the business. Contracts and invoices prove that you made binding agreements and followed through with payment. Keep receipts and canceled checks, as they confirm that transactions occurred.
If you formed a corporation or limited liability company, corporate records are important as well. Stock certificates, operating agreements, and capital contribution records show that your investment is formal and complete.
Strategic Approach
Secure contracts and make payments before filing your E-2 application. An investor who has already leased space, purchased equipment, and hired employees demonstrates a higher level of commitment than one who plans to take those steps after approval.
Maintain enough working capital for operations and ensure that every dollar has a clear, documented purpose. Begin recordkeeping from the start, because it is much harder to reconstruct later. What you spend should match the financial projections in your business plan, or you will need to explain any differences.
Conclusion
Qualifying investment expenses come down to one principle: real commitment. USCIS wants to see that you have placed capital at genuine risk to build an active business. The amount must be substantial for the type of enterprise you are starting, and every claim needs to be supported by documentation.
What counts are expenses you cannot easily reverse, costs directly related to business operations, and clear proof through contracts, invoices, and payment records. What does not count are personal expenses, refundable deposits, and uncommitted funds.
The goal is not to inflate your investment total but to build a viable enterprise with the resources required to operate, hire employees, and contribute to the local economy. Use your capital purposefully, document each transaction, and you will satisfy both the legal requirements and the practical realities of running a successful U.S. business.
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 – https://travel.state.gov/content/travel/en/us-visas/employment/treaty.html