The E2 visa, a non-immigrant visa that allows entrepreneurs from treaty countries to invest in a business and relocate to the United States, has seen a surge in popularity over recent years. This article provides an in-depth analysis of the approval and denial rates for this business-centric visa in 2023.

Understanding the E2 Visa

The E2 Visa is a renewable non-immigrant visa that grants entrepreneurs from treaty countries the opportunity to invest in a US business. Unlike the EB-5 Visa, there is no particular minimum investment amount for the E2 visa; this can vary enormously.

Perhaps invest $100,000 to meet the substantial investment requirement. The E2 visa also does not mandate a specific number of American jobs to be created or maintained. The visa can be renewed indefinitely, provided the business remains viable. To obtain a Green Card you will need to meet the specific requirements for a particular immigration route.

The E2 visa also grants the investor’s spouse the ability to work in the US, and their children can live and study in the country until they turn 21.

Analysing the Approval and Denial Rates

In 2019, the E2 visa approval rate remained the same at 89%. Despite stricter regulations in certain E2 countries, the E2 visa landscape has not significantly changed.

Here is a look at the approval rates from 2017 to 2019:

Year	Approval Rate
2017	90%
2018	89%
2019	89%

The E2 visa denial rate in 2019 stood at 11%. Despite stricter immigration policies, the denial rate did not increase, reflecting the high approval ratings of the E2 visa relative to other non-immigrant visas.

Policy Changes Impacting the E2 Visa

While the approval rate did not decrease, numerous regulations were introduced in several E2 treaty countries. The changes were mainly caused by alterations made by the US Government. Specifically, Section 10 of Executive Order 13780 mandated the Department of State to review all non-immigrant visa reciprocity agreements to verify that they are truly reciprocal.

Here are a few notable changes:

• France: The E2 visa validity period was reduced from 60 months to 25 months.
• Netherlands: The E2 visa validity period decreased from five years to three years, and the visa fee increased from $0 to $2,228.
• Australia: The E2 fees for Australian nationals rose from $105 to $3,574, marking a 3303.81% increase!
• Israel: The E2 visa validity period decreased from five years to two years.
• Iran: Iranian citizens are no longer eligible for the E2 visa.

Countries with the Highest Number of E2 Visas in 2019

Japan led the pack in the number of E2 visas issued, most of which were for E2 managers transferred to the US to work in E2 companies. Other countries with a high number of E2 visas include Germany, which was replaced by Canada as the second-highest, and France, which saw a drop in its E2 visa rankings due to the shorter validity periods imposed.

 

E2 Visa Issuance by Continent

Continent	E-2 Visa Issuance	Percentage
Asia	17,783	41.1%
Europe	16,556	38.2%
North America	6,473	15.0%
South America	1,764	4.1%
Oceania	562	1.3%
Africa	148	0.3%

Approximately 80% of E2 visas issued in 2019 came from Asia and Europe. The rate of E2 visa issuance in North America has increased from 12% to 15%, with Canada contributing significantly to the rise in E2 visas.

Conclusion

Compared to other non-immigrant visas, the E2 visa has a higher approval rate at 89%.. Despite stricter immigration policies implemented under the Trump administration, the E2 visa approval rate did not decrease. The denial rate for non-immigrant visas overall is more than twice as high as the denial rate for E2 visas.

The top E-2 Visa countries and continents remain similar, but fees and validity periods have changed.

It is crucial for E2 visa applicants to identify a strong business that can meet the renewal requirements after the first validity period. Working with professionals, such as immigration attorneys and business advisors, can support you throughout the E2 process.

 

E2 Visa Success Rate: A Closer Examination

The E2 visa classification is a popular route for foreign nationals looking to venture into US business. However, applying for the E2 visa comes with significant financial risks for the applicants. Given the potential for financial loss from a failed application, understanding the E2 visa success rate is crucial for prospective applicants.

E2 Visa Success Rate

According to Department of Stats data, the E2 visa success rate in 2021 was 92.51%.

Fiscal Year	E2 Visas Issued	E2 Visas Rejected	Total E2 Visa Applications	E2 Visa Success Rate	E2 Visa Refusal Rate
2018	41,181	13,489	54,670	75.33%	24.67%
2019	43,286	5,115	48,401	89.43%	10.57%
2020	23,493	3,266	26,759	87.79%	12.21%
2021	33,129	2,683	35,812	92.51%	7.492%

Those that are refused often lack professional advice, making them more susceptible to falling short of the E2 eligibility and/or evidentiary requirements.

Reasons for E2 Visa Application Refusal

Each E2 visa application, including the business plan and supporting documents, is assessed against eligibility criteria. However, there are a few common pitfalls and objections during adjudication, which applicants should address to avoid a refusal:

Substantial Investment

The investment level must be considered ‘substantial‘. The definition of substantial is subjective and varies with the enterprise in question.

Legitimate Funds

Applicants must provide sufficient evidence in the required format to prove that the funds or assets used for the E2 investment are from a legitimate source.

Marginal Enterprise

Applicants must showcase that their venture will generate more than enough income to support them and their family. The enterprise should project and demonstrate adequate profit growth that will result in wider economic benefits beyond the investor’s family unit.

Easily Retrievable Investment

The evidence should indicate that the investor is fully invested in the venture and unlikely to use the system to make money and withdraw it.

Personal Financial Risk

The investor should demonstrate that the business is operating legitimately with approved funding. The E2 visa won’t be granted unless the investor has already invested in the business and it is either ready to operate or already operational.

Capability to Direct the Enterprise

E2 investors are required to demonstrate their commitment to being involved in the development and leadership of the business.

Sufficient Ties to Home Country

The investor must be able to show they have commitments and interests in their own country that prove they will leave the US on visa expiry.

What to Do If Your E2 Visa Application Is Refused?

If an E2 visa application is refused, applicants should take advice on their options, which could include whether to appeal, reapply for the E2, or apply for another visa category.

If a new application is made, applicants should directly address the grounds for refusal. They should provide supporting documents for their visa application that correlate specifically to the visa criteria.

Applicants should also prepare well for their interview. They should review the forms and supporting documentation, especially their business plan. Giving inaccurate or conflicting details can raise concerns and may result in the rejection of a visa application.

Alternative Visa Options

The E2 visa may not be suitable for all applicants and all circumstances. Following an E2 visa refusal, applicants might consider alternative immigration options. For example, the EB5 visa, which is an immigrant investment visa, or possibly the H visa classifications. However, EB5 could take years in processing time.

Investment Opportunities for E2 Visa Applicants

Foreign entrepreneurs applying for the E2 visa have a broad range of investment opportunities available to them. Here are some common investment opportunities pursued under the E2 visa:

Technology Startups

Investing in technology startups has become increasingly popular among E2 visa applicants. The United States is renowned for its thriving tech ecosystem, which provides ample opportunities for innovation and growth.

Franchises

Franchising is another avenue that foreign entrepreneurs explore under the E2 visa program. Investing in a franchise allows individuals to tap into an established business model with a proven track record.

Real Estate Development

The E2 visa presents opportunities for foreign investors interested in the booming real estate market in the United States.

Manufacturing

The manufacturing sector offers attractive investment prospects for E2 visa applicants.

Service-Based Businesses

Service-based businesses are a broad category that encompasses a wide range of industries.

Popularity of E2 Visa

The popularity of E2 visas has seen a gradual increase over the last four years. This category noted a sharp rise from about 35,000 in 2013, to more than 44,000 in 2016.

Nationals of Japan (13,609) and Germany (4,329) were the leaders of E2 visa approved applications. The high approval rate (over 90%) makes the E2 visa category very attractive for potential investors.

President Trump’s immigration reform plans bring uncertainty to many non-immigrant visa categories, like H-1B and J-1, however E-2 visa is very beneficial to the US economy and we predict that as such it should remain intact.

Preparing a Successful E2 Visa Application

Here are some tips on how to prepare a successful E2 visa application:

1. The investment must be “substantial”, with investment funds or assets committed and irrevocable.
2. The investment must be a real operating enterprise, an active commercial or entrepreneurial undertaking, and the investor must be in charge of managing it.
3. The enterprise should not be marginal; it should have the present or future capacity to generate more than a minimal living for the investor and his or her family.
4. The paperwork requirements vary from post to post (for example, the US Embassy in Belgium will not accept E visa application that exceeds 40 double sided pages).

For investors purchasing an existing business that already has employees and has profit, non-marginality requirement is easier to establish than in cases where the applicant wants to invest in a start-up.

workpermit.com helps with US Work Visa: L1, H1B, E2, and O1 Visas

There are various types of US visas that individuals can apply for, depending on their circumstances. Some of the most common employment-based visas include:

• L1 visa: This visa is for intracompany transferees who work in managerial or executive positions or have specialized knowledge.

• H1B visa: This visa is for specialty occupations that require theoretical or technical expertise in specialized fields.

• E2 visa: This visa is for investors who have made a significant investment in a US business and, management or essential skills employees.  Only certain nationalities can apply.

• O1 visa: This visa is for individuals with extraordinary abilities in the arts, sciences, education, business, or athletics.

Workpermit.com is a specialist visa services firm with over thirty years of experience dealing with visa applications. For more information and advice, please contact us on 0344 991 9222 or at london@workpermit.com(link sends e-mail)