Top 10 Reasons E-2 Applications Face RFEs and How to Overcome Them

A Treaty Investor visa (E-2) is a nonimmigrant visa for nationals of a country with which the United States maintains a treaty of friendship, commerce, and navigation. The E-2 nonimmigrant classification allows a national of a treaty country to be admitted to the United States when investing a substantial amount of capital in a U.S. business. Certain employees of such a person or of a qualifying organization may also be eligible for this classification.

The E-2 Investor Visa allows an individual to enter and work in the United States based on an investment in a U.S. business. The E-2 visa is valid for three months to five years (depending on the country of origin) and can be extended indefinitely. investing a substantial amount of capital in a U.S. business. Certain employees of such a person or of a qualifying organization may also be eligible for this classification.1 The E-2 Investor Visa allows an individual to enter and work in the United States based on an investment in a U.S. business. The E-2 visa is valid for three months to five years (depending on the country of origin) and can be extended indefinitely.  

The U.S. Citizenship and Immigration Services (USCIS) is responsible for processing immigration and naturalization applications and establishing policies regarding immigration services. USCIS performs many of its duties, namely processing and adjudicating various immigration matters, including applications for work visas, asylum, and citizenship. 

For new startups, the investment must be large enough to start and operate the business. The amount of investment varies depending on the type of business. The investment will not be considered substantial if it is not large enough to capitalize on the venture. The USCIS will use an “Inverted Sliding Scale” to determine whether the investment is substantial in proportion to the overall cost of the enterprise. The E-2 visa investor must have a controlling interest in the business (generally over 50% ownership). 

As part of the required documentation for the USCIS, the Applicant must attach a credible business plan showing that the U.S. business will generate enough money to support the Applicant during their stay in the U.S. along with all his dependents. The business cannot be marginal. 

While the vast majority of visa applications are approved, U.S. law sets out many standards under which a visa application may be denied. If a visa is denied, in most cases, the Applicant is notified of the applicable section of law. The Applicant is also advised by the consular officer (lawyer) if they may apply for a waiver of their ineligibility. Several of the most common reasons for visa ineligibility are explained in the following text.  

Insufficient Investment Amount 

• The Applicant’s investment is deemed insufficient to ensure the success of the business, and therefore, it is not substantial. As a solution, we need to demonstrate a substantial investment relative to the Company’s needs, covering startup costs and operational expenses and demonstrating the Company’s viability. 

There is no limit on how much the Applicant should invest (or spend) in the business when applying for an E-2 visa. However, in practice, it has been shown that this amount should be at least $50,000-$100,000.  

For example, the Applicant wants to open a company in Maryland that will provide comprehensive tailoring and alteration services, catering to the general public. The Applicant is ready to invest $30,000. However, the costs of opening such a business require a much larger investment: 

If the Applicant applies for an E-2 visa based on this company, USCIS will ask a very clear question: “How does the Applicant plan to start a business with only $30,000 when otherwise, for that type of business, it is necessary to invest between $131,000 and $332,000?” USCIS will have doubts that it is not legitimate to start a business with such a small investment. Also, USCIS will not be sure that the Company will immediately have sales to cover sales expenses.  

For this reason, we always first consult with a lawyer to determine if the client can make additional investments. While we have encountered cases where an E-2 visa was granted with smaller investments, it is crucial to present a strong explanation in the plan and be prepared for a Request for Evidence (RFE) or potential denial.  

Marginal Business 

• The Company’s business model is perceived as only providing a living for the Applicant and not contributing to the local economy. As a solution, we need to write a business plan that: 

• Shows a detailed hiring plan for the next five-year period;  

• Contributes to the local economy; and 

• Shows the growth of the Company’s business beyond just the Applicant’s personal income. 

For example, Ms. Jenna Smith is applying for an E2 visa based on her startup business, Jenna’s Design. Jenna’s Design will operate as a Santa Monica-based business offering interior design services. Given that Ms. Smith plans to open a small local business, she plans to hire only one Assistant in Year 3.

USCIS will have an objection because there will be no benefit to the U.S. economy. After all, this is practically self-employment. There is no specific number of employees that would represent the minimum that meets the criteria, but USCIS will always pay attention to whether the Company would benefit in terms of increasing payroll and net income taxes, lowering the unemployment rate, increasing cultural and social benefits, etc. That is why it is good for the client to define a plan for business growth and expansion and have a hiring plan that shows that expansion.  

The Lack of Active Engagement 

• Passive investments (e.g., real estate rental properties) do not qualify for applying for an E-2 visa. As a solution, the Company’s business plan needs to prove active involvement in the day-to-day operations and management of the business. 

For example, the Real Estate Industry is interesting for people who are investing in getting an E-2 visa, but we should be careful that it is not passive. The Applicant wants to open a business in which they will purchase apartments and wait for their price to rise to sell them for a higher price, and that price difference would represent a profit. This is a passive investment, and UCSIS will not approve anything like that. This is why it is important to show through the business plan how the Applicant will participate actively (e.g., the Company buys an apartment, renovates it, and sells it at a higher price). That is why we ask the client or lawyer to clarify the business model and add an added value component. 

Incomplete or Poor Business Plan 

• A vague, unrealistic, or incomplete business plan undermines the application for the E-2 visa. As a solution, the Applicant must submit a comprehensive business plan, including market analysis, revenue projections, and a clear strategy for achieving profitability. 

We have seen incomplete or poor plans that did not pass UCSIS’s criteria.  

For example, frequent problems of incomplete or poor business plans are: 

• A market analysis that is too wide (for a local restaurant in Miami Beach, the market analysis is based on the state of Florida instead of just for the Miami Beach area): 

• Sales projections are huge without any sales assumptions or explanations: 

• There is no detailed description of the business model (after reading the business plan, key questions are still asked, such as who, what, where, when, how, etc.).  

Within our portfolio, we offer an E-2 business plan diagnosis service. This way, we evaluate the plan and suggest changes that would make it better for immigration. This service was designed to help clients assess and strengthen their business plans for immigration purposes. It involves a thorough review of the existing business plan to ensure that it meets the requirements set forth by immigration authorities for E-2 visa approval. 

Based on the review, we provide tailored suggestions to enhance the plan, such as adding more detailed financial projections, refining the business strategy, or strengthening the explanation of the Applicant’s involvement in the business. Our goal is to make the plan more compelling and aligned with immigration expectations.  

Failure to Prove Source of Funds 

• If the Applicant cannot adequately trace or verify where the investment funds originated, we need to provide documentation proving the funds are legitimate and legally obtained (e.g., bank statements, sales agreements, or inheritance records). 

For example, the Applicant states that they invested a total of $5,000,000 into the business from their personal funds.  

Due to the significant amount of money involved, USCIS will question the source of these funds. Therefore, we need to consult with the client to explain and provide evidence of the origin of the funds available for investment. Additionally, we often work with a lawyer who gathers documentation to ensure the alignment of sources. 

Non-Qualifying Business Activity 

• The Company’s business model does not meet the criteria for an E-2 visa (e.g., speculative investments, sole proprietorships without scalability). As a solution, the Applicant needs to ensure the business is an operational, revenue-generating entity or has a clear path to becoming one. 

For example, the Company is a non-profit business and operates as a charitable organization dedicated to promoting Chinese culture in Los Angeles, California. The Company does not generate any revenue but only relies on donations from individuals, corporations, and other foundations. These donations are primarily used to support the Company’s expenses, such as administrative costs (staff salaries, facilities, logistics), as well as marketing and fundraising activities to ensure future donations. 

The Lack of a Real and Operating Enterprise 

• The Company’s business model is not operational or does not demonstrate significant progress toward becoming operational. As a solution, the Applicant must submit evidence like business licenses, lease agreements, contracts, and employee onboarding to show the business is real and active. 

Many lawyers advise their clients to spend at least half of the investment before applying for an E-2 visa, or even more. On the other hand, numerous attorneys say that it is important to establish the Company’s operations, while the majority say that it is important to rent an office immediately. 

The elements in the Summary of Investment table show that the Applicant is already trying to make the business succeed. The most often Already Spent Expenses are: 

• Business Purchase (if obtaining an existing business) – acquiring an existing business will demonstrate the Applicant’s commitment to starting with an established foundation; 

• Rent – securing a suitable location will show the Applicant’s readiness to operate the Company effectively; 

• Renovation – investing in renovations will highlight the Applicant’s effort to enhance the Company’s space for functionality and appeal; 

• Inventory – purchasing inventory will ensure the Company is prepared to meet customer needs from the outset; 

• Professional Fees (legal, accounting, etc.) – engaging legal and accounting services will reflect the Applicant’s focus on compliance and proper financial management; 

• Payroll (if any employees have already been hired) – hiring employees ahead of the Applicant’s E-2 visa approval will showcase his intent to build a capable and efficient team; 

• Insurance, Maintenance, and Utility – covering essential operational costs will indicate the Applicant’s diligence in safeguarding and sustaining the business; 

• Marketing (website, SEO, flyers, ads, etc.) – investing in marketing initiatives will demonstrate the Applicant’s proactive approach to building brand awareness and attracting customers; 

• Furniture and Equipment – procuring furniture and equipment will show the Applicant’s preparation to create a fully operational and welcoming business environment. 

For example:  

That is why we always ask about the Applicant’s actions that have been taken so far, as well as a list of expenses that have already been made.  

Weak Economic Contribution 

• The Company’s business model does not create jobs or contribute to the U.S. economy significantly. As a solution, the business plan needs to emphasize the potential for job creation and provide supporting projections or current employee data.  

For example, the Company will operate as a small business based in Galena, specializing in handmade jewelry for local customers. The Company plans to hire the Applicant (upon the approval of their E-2 visa) and just a few Jewelries responsible for crafting and selling the products. To minimize operating costs, the Company will operate remotely and compensate its employees on a commission-only basis. Its target market will be limited to the local community in Galena, Illinois, to reduce delivery expenses, and it has no plans for expansion. The Company will not supply its materials locally but instead will procure them online from platforms like AliExpress, Temu, and other international suppliers to lower direct costs. 

USCIS will hardly approve an E-2 visa based on this business model. The Company will generate a minimal number of jobs, and since it will not provide payroll, it will not incur payroll taxes. Additionally, the Company’s low revenue will result in a modest net profit, thereby reducing net income tax obligations. Without utilizing local suppliers, the Company will also not contribute to the creation of indirect jobs.  

Therefore, USCIS will question the Company’s contribution to the U.S. economy and will likely deny the Applicant’s E-2 visa. 

Misalignment Between the Applicant and Business 

• The Applicant lacks the skills, experience, or background to successfully run the Company. As a solution, we need to provide evidence of the Applicant’s relevant education, work experience, or training to show their competence. 

That is why it’s important to include a section about the Applicant as part of the Key Management and Personnel in your business plan or answer to an RFE. It’s essential to demonstrate that the Applicant possesses the qualifications, expertise, and relevant experience required to successfully lead and manage the Company.  

Any description of the Key Management and Personnel should include these parts:

Introduction 

We usually begin the section with a brief overview highlighting the Applicant’s qualifications and why they are well-suited to run the Company. We mention the Applicant’s years of experience in the relevant field or industry. We also highlight notable achievements that align with the Company’s goals and state the Applicant’s leadership and management capabilities. 

For example: “Ms. Meisel will assume the role of BellaVets, LLC’s Chief Executive Officer and Veterinarian, overseeing the Company’s future expansion. She will manage BellaVets, LLC’s entire base of operations. Ms. Meisel is a proficient Small Animal Veterinarian with more than six years of experience in small and mixed animal practice. The Applicant’s educational background and extensive professional experience have equipped her with the skills and expertise to lead the Company’s growth and development.” 

Education 

We provide details about the Applicant’s academic background, focusing on qualifications that are directly or indirectly relevant to the business. We include all relevant info, such as earned degree(s) (e.g., Bachelor’s, Master’s, or higher), field of study (e.g., Business Administration, Engineering, etc.), institutions attended, and graduation years. 

For example:  

• In March 2017, Ms. Meisel obtained a Veterinary Medicine Degree from Justus-Liebig University, Germany. 

• From April 2017 to March 2018, the applicant attended part-time postgraduate studies at the same university, but left the program due to a lack of samples. 

• From October 2018 to February 2018, Ms. Meisel attended the Educational Commission for Foreign Veterinary Graduates of the AVMA and successfully completed the program for the approval of equivalency of her German Veterinary Degree to the U.S. DVM.  

• In November 2019, the Applicant passed the NAVLE as a requirement for a Veterinary Medical Licensure in the U.S., and since May 2020, she has had a full license to practice veterinary medicine in Alaska. 

Professional Experience 

Furthermore, we detail the Applicant’s career history, focusing on roles that demonstrate expertise in areas critical to the Company’s business model. For each position, we include the company’s name, job title, and the period that the Applicant worked at this company. We also aim to include the Applicant’s responsibilities, highlighting performed tasks that align with the skills needed to run the Company’s business. Additionally, we showcase results or accomplishments, such as revenue growth, cost reduction, successful projects, or team leadership, if available.  

For example:  

• From June 2017 to January 2018, Ms. Meisel worked as a Mixed Animal Veterinarian at Tieraerztliche Gemeinschaftspraxis Dr. Jochims und Henk, Bad Berleburg, Germany. She was responsible for the following: 

• Working with small animals and large animals, including exotics such as small mammals, birds, and camelids. 

• Conducting in-house blood analyses, cytology, and X-rays for small and large animals. 

• Performing dental procedures on small animals. 

• Performing Routine surgeries on small animals. 

• From January 2018 to December 2019, the Applicant was a Mixed Animal Veterinarian at Barrowside Veterinary Hospital, New Ross, Wexford, Ireland. She was responsible for the following: 

• Working with small and large animals. 

• Conducting in-house blood analyses, x-rays, and pregnancy scans for small and large animals. 

• Performing dental procedures on small animals and horses. 

• Performing routine and emergency surgeries on small and large animals. 

• Since January 2020, Ms. Meisel has been working as a Small Animal Veterinarian at Tierarztpraxis Puvogel, Bergen auf Ruegen, Germany. She is responsible for the following:  

• Working with small animals, including small mammals and birds. 

• Extensive diagnostics (full range of laboratory diagnostics, cytology, endoscopy, x-ray, sonography). 

• Dental procedures. 

• A broad range of soft-tissue surgeries (routine and emergency procedures). 

• Basic orthopedic surgeries, such as amputations and simple osteosynthesis. 

Skills 

We list relevant skills that support the Applicant’s ability to manage the Company effectively, such as leadership and strategic planning, industry-specific knowledge (e.g., IT expertise for tech companies, marketing for consumer-focused businesses), operational skills (e.g., supply chain management, budgeting, financial forecasting), etc. 

Languages 

We mention the Applicant’s proficiency in languages, especially if language skills are an asset in managing the Company or engaging with specific customer bases or partners. 

For example: “Ms. Smith is fluent in Spanish, French, and English. This will allow the Company to establish effective and close collaboration with foreign suppliers and clients.” 

Certifications and Training 

We include professional certifications, workshops, or other training programs the Applicant has completed. This section is particularly important if the Applicant has earned credentials directly related to the Company’s operations, such as business certifications (e.g., MBA, PMP, Six Sigma) and industry-specific licenses or certifications (e.g., IT certifications, legal or accounting qualifications). 

For example: 

• In 2020, Mr. Faraminezhad joined the Cellphone Merchant Association (CPMA). 

• In August 2018 and March 2018, the Applicant obtained Certificates of Activity for Representing a Foreign Company in Iran. 

• In 2017, Mr. Faraminezhad participated in the “Blue Ocean and Creativity Strategies” seminar in Tehran, Iran. 

Awards and Recognitions 

We mention any awards, recognitions, or distinctions the Applicant has received in his career. These will add credibility and demonstrate the Applicant’s competence. 

For example: 

• In February 2018, the Applicant joined the Iranian Impacters Club. 

• In December 2016, Mr. Faraminezhad was recognized at Mobilex 2016/4 – The 16th Exhibition of Mobile Phones & Accessories. 

• In September 2016, the Applicant was honored at CAMEX 2016 – The 13th Exhibition of Camera & Mobile Phones. 

• In February 2016, Mr. Faraminezhad received recognition at MOA MEX – The 12th Exhibition of Music Instrument & Mobile Phones. 

• In February 2015, the Applicant was acknowledged at The 11th General Assembly Iran Furniture & Mobile Market. 

Poor Documentation or Errors in Filing 

• Poor documentation or errors in filling, such as missing, incomplete, or inconsistent documents, in the application will lead to denials. As a solution, the client needs to ensure that all forms are correctly filled out and supported by accurate, verifiable documentation, ideally with the assistance of an experienced immigration attorney. 

The most common mistakes made when filing USCIS documents include: 

• Forgetting a signature – If the Applicant fails to sign a document, USCIS will automatically reject or return the application. 

• Not completely filling out the form – If the Applicant leaves any part of the application blank, his petition may not be approved. 

• Using old forms – The USCIS website contains all the available forms that are ready for download and print. 

• Using colored ink – the Applicant must complete all forms in blank ink and legible writing within the provided spaces. 

• Correcting errors – If the Applicant makes a mistake on the form, they cannot cross out or use correction fluid to fix the answer since the USCIS scanners will not detect it. The Applicant will need to start over with a brand-new application. 

• Forgetting vital information – Each document in the application asks the Applicant for his name, date of birth, and (sometimes) his alien number. Failure to repeat important identifying information may result in the denial of the Applicant’s petition. 

• Making wrong payments – There is a “fee calculator” on the USCIS website to ensure the right payments are made when the Applicant submits his application. 

• Using binders or folders – Immigration officials must easily separate the documents, so do not bind them together. This also includes stapling. The Applicant must use only paper clips. 

• Mixing different applications – If the Applicant is using one envelope to submit two different documents, they need to ensure they are separated by using paper clips or rubber bands. 

• Turning in large files – Unless it is absolutely necessary, the Applicant is not allowed to submit large files. 

• Submitting original documents – the Applicant must turn in only photocopies of important identifying information rather than the originals. 

• Sending the application to the wrong address – Immigration officials may reject or return improperly filed petitions. 

To avoid any of these mistakes, we are able to recommend someone from our list of competent lawyer partners with whom we have been working for years.  

Obtaining an E-2 visa requires detailed preparation, as even minor oversights can lead to denial. The reasons for rejection often stem from insufficient documentation, poorly structured business plans, or failure to meet the visa’s strict requirements. To avoid these difficulties, it is essential for the Applicant to provide a detailed E-2 business plan. That way, the Applicant will ensure that every aspect of the application, from investment details to job creation potential, aligns with immigration standards, significantly increasing the likelihood of approval. A well-prepared application is the foundation for a successful E-2 visa process and a smooth transition to starting or managing a business in the United States. 

Joorney Can Help You Answer Requests for Evidence 

RFEs are a frequent issue for E-2 applicants and answering them properly is key to keeping your application on track and moving forward. This requires an understanding of the underlying issue and how to provide a satisfactory answer for USCIS.  

That’s why Joorney offers RFE response support. We will answer your RFE in a professional and timely manner that helps to resolve the issue and provides immigration authorities with the information they need to proceed. Don’t let a misunderstanding of what USCIS is asking for or an incomplete response potentially ruin your chances of success – learn more about how we can help.