Common Reasons E-2 Visas Are Denied (and How to Avoid Them)
Common Reasons E-2 Visas Are Denied (and How to Avoid Them)
The E-2 Treaty Investor visa can be an excellent option for entrepreneurs and investors seeking to live and operate a business in the United States.
However, E-2 visa applications are frequently denied, often for reasons that could have been avoided with proper planning and documentation.
Below are the most common reasons E-2 visas are denied, along with guidance on how to reduce the risk of refusal.
For a full overview of E-2 eligibility and requirements, visit our main service page:
E-2 Visa Attorney | Treaty Investor Visa for the United States
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1. The Investment Is Not Considered “Substantial”
One of the most common reasons for E-2 visa denial is that the investment is not viewed as substantial in relation to the business.
U.S. immigration law does not require a specific minimum investment amount. Instead, officers evaluate whether the investment is substantial
based on the total cost of purchasing or starting the business and whether it is sufficient to ensure the business will operate successfully.
How to avoid this:
Your investment should be proportional to the business type and clearly aligned with realistic startup or acquisition costs.
Documentation should demonstrate that the business is adequately capitalized for its industry.
For authoritative guidance, see:
U.S. Department of State – Treaty Investor (E-2) Visa
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2. Funds Are Not Clearly At Risk or Fully Committed
An E-2 visa requires that the investment funds be at risk and irrevocably committed to the business.
Applications are often denied when funds are still sitting in a personal bank account or when commitments are not clearly documented.
How to avoid this:
Provide evidence that funds have already been spent or are contractually committed, such as purchase agreements, lease deposits,
equipment invoices, franchise fees, or other binding expenses directly related to the business.
3. The Business Appears Marginal
An E-2 business must be more than a means of supporting the investor alone.
If the business appears unlikely to generate more than minimal living income, it may be considered marginal, which can lead to denial.
How to avoid this:
Present a credible plan showing that the business has the capacity for growth, profitability, and job creation.
Financial projections should be realistic and consistent with industry standards.
4. Weak or Inconsistent Business Plan
A poorly prepared business plan is a frequent cause of E-2 visa denials.
Plans that are generic, lack detail, or contain inconsistencies between the narrative and the financials raise red flags.
How to avoid this:
Your business plan should clearly explain the business model, market, operations, and financial projections.
All figures should be internally consistent and supported by documentation where possible.
5. Failure to Prove a Lawful Source of Funds
Even when the investment amount is sufficient, an E-2 application may be denied if the applicant cannot clearly demonstrate
that the funds were obtained lawfully.
How to avoid this:
Provide a clear paper trail showing the origin of the funds, such as bank records, sale agreements, tax returns,
inheritance documents, or gift documentation.
Funds should be traceable from their source to the business investment.
USCIS guidance on E-2 classification is available here:
USCIS – E-2 Treaty Investors
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6. Ownership or Control Requirements Are Not Met
To qualify for an E-2 visa, the investor must own at least 50% of the business or otherwise possess operational control.
How to avoid this:
Ensure that ownership documents, operating agreements, and corporate records clearly establish qualifying ownership or control
and are consistent throughout the application.
7. Incomplete or Inconsistent Documentation
Inconsistencies between documents or missing evidence can lead to delays or denials, even when the underlying case is otherwise strong.
How to avoid this:
All documents should be carefully reviewed for consistency, accuracy, and completeness before submission.
Supporting evidence should clearly align with the business plan and financials.
Why Working With an E-2 Visa Attorney Matters
E-2 visa adjudications are discretionary, and even small weaknesses can lead to denial.
An experienced E-2 visa attorney can help identify potential issues early, structure the investment correctly,
and present the case in a way that aligns with immigration expectations.
For a complete overview of E-2 visa requirements and the application process, visit:
E-2 Visa Attorney – Treaty Investor Visa for the United States
Speak With an E-2 Visa Attorney
If you are preparing an E-2 visa application or have concerns about a potential denial,
professional guidance can help reduce risk and improve your chances of approval.
Frequently Asked Questions
What is the most common reason E-2 visas are denied?
The most common reasons include insufficient investment, funds not being at risk,
weak business plans, and failure to document the lawful source of funds.
Can an E-2 visa be refiled after a denial?
In many cases, yes. However, the issues that led to the denial must be properly addressed before reapplying.
Does having a higher investment guarantee approval?
No. While investment size matters, documentation, business viability,
and compliance with E-2 requirements are equally important.
Can an E-2 visa be denied even if the business is operating?
Yes. If the business is considered marginal, undercapitalized,
or noncompliant with E-2 requirements, the application may still be denied.
