When you first apply for an E-2 investor visa, the business plan is required and it usually includes projections for revenue, profit, expenses, and hiring over the next several years. These numbers help explain how the business is expected to grow, and why the E-2 entity will not be marginal.
But real businesses do not always grow exactly as expected.
If your E-2 visa renewal is coming up soon, then you might wonder whether the difference between the original projections and the actual results hurt your visa renewal case.
Not necessarily. But the larger the difference, the more important it becomes to explain what happened and show that the business still meets the E-2 requirements.
- Missing original E-2 business plan projections does not automatically hurt renewal; projections are not a binding promise, only a reasonable growth expectation.
- Officers focus on whether the business still meets the marginality requirement, operates continuously, and makes a meaningful economic contribution in the United States.
- At renewal, emphasize actual performance: revenue trends, U.S. employees/contractors, contracts, equipment purchases, and other records showing a real, active, and growing company.
E-2 Business Plan Projections Are Not a Promise or Binding Contract
The purpose of a business plan is to present a reasonable picture of how the E-2 business is expected to grow & develop. It is not a guarantee that every number will be reached exactly. You are not signing anything that says the business must meet every projection in the plan.
The E2 rules & regulations focus on whether the business continues to qualify for the E2 classification, rather than whether every revenue, profit, or hiring projection in the original business plan has reached exactly.
E-2 Business Plan Projections and the Marginality Requirement
One important requirement is that your E-2 company cannot be marginal.
This marginality requirement is basically to see whether your company is doing more than just generating enough income to cover you and your family’s living expenses, and whether it has the capacity to create jobs or otherwise make a meaningful economic contribution in US.
This means that falling short of one financial projection does not automatically mean that the business has failed. A business may have lower revenue than expected but still be operating, employing workers, and gradually growing.
When a Large Shortfall Draws Closer Scrutiny
At the same time, a large difference can raise questions. If the business projected significant growth but has very little revenue, no employees, and has reported net losses during the last 2-3 years, you will likely face much closer scrutiny at the visa interview.
What Should You Show at the Time of E-2 Renewal?
Instead of focusing too much on whether your E-2 entity has met every projection in the original business plan, your E-2 renewal application should focus on how the company has actually grown since the initial approval.
Documents That Show How the Business Has Grown
You should show that the business has been operating continuously, increasing its revenue, hiring US workers, and providing more economic contributions in the United States.
The renewal application should include all documents showing the positive signs: W-2s, 1099s, signed new contracts with customers and/or vendors, purchased equipment, etc.
Focus on What the Company Has Accomplished
In other words, do not make the renewal application mainly about explaining why the original projections were not met. Focus on what your E-2 company has actually accomplished and how it has grown since the E-2 visa was first approved.
Will Missed Projections Hurt Your E-2 Visa Renewal?
Missing the projections in your original E-2 business plan does not automatically mean that your E-2 renewal will be denied.
For the renewal, the better approach is to focus on what your E2 company has actually accomplished since the initial E-2 approval.
If you are able to show that the business has continued to operate, grow its revenue, hire US employees and/or contractors, and contribute to the economy and labor market in USA, it can certainly strengthen your renewal application.
The original business plan was based on projections. Your renewal application, on the other hand, can be supported by years of actual business records. Use those records to show that the company is real, active, growing, and continuing to meet the E-2 requirements.
Discuss Your E-2 Visa Renewal With Scott Legal, P.C.
If your E-2 renewal is approaching and your results differ from your original business plan, schedule a consultation with Scott Legal, P.C. to discuss your renewal.
