E-2 Visa: Proportionality Test

May 17, 2018

 

 

Your E-2 investment must be substantial. To determine if it is substantial an immigration officer will use the “proportionality test”. This test compares your investment funds against the cost of an established business or, if a newly created business, the cost of establishing a business. This test takes into account that the lower the cost of your company, the higher the proportionality, i.e., the investment must be to be considered substantial.

 

There is no set dollar amount to determine an investment’s substantiality, but immigration officers will take into account the following proportionality factors, according to 8 CFR § 214. 2(e)(14):

  • Whether your investment is substantial in a proportional sense, as determined through purchasing of an appropriate portion of an “established enterprise” or by applying funds to “creat[e] the type of enterprise under consideration”;

  • Whether your investment is sufficient to ensure your financial commitment to the successful operation of your enterprise; and

  • Whether your investment is of a “magnitude to support the likelihood that the treaty investor will successfully direct and develop the enterprise”.

 

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