A key question for E-2 visa applicants and holders is whether the original investment, often a substantial amount such as $100,000, must remain in the business after the visa is granted. The short answer is no, the E-2 visa does not require that the original capital contribution be retained in the business indefinitely.
E-2 Visa vs. EB-5 Requirements
It’s important to distinguish between the E-2 visa and the EB-5 Immigrant Investor Program, as the rules differ significantly. Under the EB-5 program, the investment funds must remain “at risk” in the business for a set period. In contrast, the E-2 visa has no requirement that the original investment amount remain in the company after it has been committed to the business.
How E-2 Investment Funds Can Be Used
Once your E-2 investment has been made and the funds have been irrevocably committed to the business (for example, spent on equipment, marketing, leases, inventory, or startup costs), there is no requirement that the capital itself stays in the company. As the business begins operating and generating revenue, the business may pay you a salary, and you may receive capital distributions or profits.
Maintaining E-2 Visa Compliance
While you are not required to retain the original investment, you must continue to meet all other E-2 visa requirements. This includes actively directing and developing the business, keeping the business operational, and meeting job creation and income benchmarks sufficient to support you and your dependents. What matters most is that your investment was substantial, at risk, and used to actively develop a real operating enterprise at the time of your visa application.
Understanding Your Investment Obligations
The flexibility of the E-2 visa’s investment requirements makes it an attractive option for many entrepreneurs. As long as the business is profitable and operating in accordance with your business plan, the status of the initial capital is no longer scrutinized post-approval. If you have questions about the investment requirements or maintaining your E-2 status, schedule a consultation with us to speak with our experienced immigration attorneys.
