E-2 Investment Amount

How much do you actually need to invest?

There is no fixed statutory minimum for an E-2 investment. The figure that matters is whether your investment is substantial relative to the business you are buying or building, and whether the business will do more than provide you a living. Both tests are proportional, which is why the honest answer always begins with the business.

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The proportional test

Why nobody can quote you a number.

The E-2 investment test compares your capital against the business you are actually acquiring or building. That is why a specific figure is meaningless without the business behind it, and why any adviser quoting a universal minimum is guessing.

Substantiality

Proportional, not absolute

The investment must be substantial in relation to the total cost of buying or establishing the enterprise. A modest consultancy and a manufacturing operation are judged against very different baselines.

Marginality

More than a living

The business must have the present or future capacity to generate more than enough income to support you and your family. A plan showing realistic growth is how this is normally addressed.

At risk and committed

Money must be exposed

Funds have to be irrevocably committed and genuinely at risk. Cash sitting in an account earmarked for a business you have not yet committed to generally does not count.

Is there a minimum E-2 investment amount?

No. There is no fixed statutory minimum. The investment must be substantial relative to the cost of the business and sufficient to make the enterprise operational.

What does “substantial” actually mean?

It is a proportional test. The investment is weighed against what it would normally cost to buy or establish that type of business, so the required figure moves with the business itself.

Can start-up spending count toward the investment?

Often yes. Funds already spent or irrevocably committed to launching the business — premises, equipment, inventory, professional set-up costs — can generally be counted where they are properly documented.

What is the marginality requirement?

The business must be capable of generating more than a minimal living for you and your family, either now or within a reasonable time. This is usually addressed through a credible business plan.