Obtaining an E-2 Investor Visa involves meticulous assessment beyond just the financial investment. A critical factor in determining eligibility for this visa is the enterprise’s ‘marginal’ requirement. We discuss this requirement under the E-2 Investor visa here.
Defining ‘Marginal Enterprise’ in E-2 Visa Terms
The U.S. Foreign Affairs Manual (FAM) defines what constitutes a ‘marginal’ enterprise for E-2 visa purposes. Per the FAM, a marginal enterprise is:
“[An] enterprise that does not have the present or future capacity to generate enough income to provide more than a minimal living for the treaty investor and their family. An enterprise that cannot generate such income but has a present or future capacity to make a significant economic contribution is not a marginal enterprise. The projected future capacity should generally be realizable within five years from the date the applicant commences normal business activity of the enterprise.” (9 FAM 402.9-6(E))
This definition highlights that simply investing in a venture isn’t enough. The investment must showcase the potential to grow beyond providing a minimal living to the investor and their family.
Criteria to Avoid Being a ‘Marginal’ Enterprise
Investments that solely focus on residential or vacation properties or land or those aimed only at generating income for the investor do not meet E-2 Visa requirements. Generally, an enterprise should demonstrate the capacity to create employment opportunities. It should ideally generate jobs for at least three workers, showing a tangible contribution to the U.S. economy beyond supporting the investor’s family.
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