Does Your E-2 Business Need to Be Open Before You Apply?

At risk and irrevocably committed

An E-2 investment means placing money “at risk in the commercial sense” in the hope of a return (9 FAM 402.9-6). The commitment must be real and irrevocable. Typical evidence:

• a signed commercial lease and the deposit paid;
• equipment, furniture and inventory bought, with invoices;
• build-out or renovation contracts and payments;
• a franchise agreement with the fee paid;
• a purchase agreement for an existing business, with funds in escrow.

How close to opening is close enough?

The rules say you must be “close to the start of actual business operations, not simply in the stage of signing contracts (which may be broken) or scouting for suitable locations.” A useful checklist before the interview:

• company formed, EIN obtained and business bank account open;
• location secured and licenses applied for;
• main equipment bought or ordered;
• suppliers, website and marketing in place;
• a hiring plan with realistic dates.

Money in the bank: why idle cash is weak

Some working capital in the business account is normal and expected. But a large balance with little spending suggests the money is not really committed. The rules say an E-2 business cannot be “a paper organization or an idle speculative investment.”

In 2026, advisers report that officers pay special attention to businesses that are well funded but not operating. The fix is to spend on what the business needs before the interview and keep the records. Our capital calculator shows what share of your investment is already spent or committed.

E-2 escrow: protecting your money if the visa is refused

Because the money must be at risk before the visa is issued, investors worry about losing it if the answer is no. The rules allow a solution: funds can be placed in escrow, released to the seller only when the visa is issued. If the visa is refused, the money comes back.

Escrow is most common when buying an existing business or a franchise. The purchase agreement is signed, the money goes to an escrow agent, and the only remaining condition is the visa. For a new business, most costs such as the lease, equipment and build-out usually have to be paid directly.

Buying an existing business vs. starting new

Buying gives you revenue, staff and a track record from day one, which helps with the marginality test, and escrow can protect the purchase price. You will need due diligence, the seller’s financial records and a clear valuation.

Starting new costs less up front, but you must prove the business is ready to open and will grow. Either way, the source of every dollar must be documented; see our source of funds page.

E-2 requirements, one page each

Each E-2 requirement has its own page with plain-language answers, official sources and the documents you will need.

Frequently asked questions