Using A Loan For Your E2 Investor Visa





If you’re considering applying for an E2 investor visa, you may have questions about how funding your investment through a loan will impact the overall investment amount. In this blog post, we will delve into these questions and provide you with essential information to help you navigate this step of the E2 visa application smoothly.


Understanding the Regulations:


To comprehend whether a loan can be utilized as part of your investment amount, it is crucial to examine the relevant regulations found at 22 CFR §41.51(b)(1); 9 FAM 402.9-6(B). According to the regulations, the concept of investment involves placing funds or capital assets at risk in the commercial sense with the expectation of generating a financial return. Nonprofit organizations are not eligible for E2 investor status Passive investments are also not eligible for E2 consideration.


Determining Loan Eligibility:


To determine whether a loan can be considered towards your investment, the regulations provide specific criteria. Let’s explore these criteria to gain a clear understanding:


1. Indebtedness Secured by Business Assets:


Mortgage debt or commercial loans secured by the assets of the enterprise cannot be counted towards the investment amount[1]. When the business itself is used as collateral, any funds obtained through loans or mortgages will not be deemed at risk, even if personal assets are also used as collateral.


2. Indebtedness Collateralized by Personal Assets:


Only indebtedness collateralized by the applicant’s personal assets, such as a second mortgage on a home, or an unsecured loan can be included in the overall investment amount. In these cases, the applicant assumes the complete or partial loss of funds in the event of business failure.


Assuming the risk of complete or partial loss of funds, however, does not mean that an investor is required to blindly fund the business without any assurance of E2 approval. In some cases, the funds and assets used to secure the investment can be placed in an escrow account for release or transfer upon condition of E2 visa issuance[2].


Practical Examples:


To illustrate these points further, let’s consider two examples:


Example 1:

Suppose a business costs $100,000, and the investor has $50,000 in cash and $50,000 in equity in their personal home. They obtain a loan secured by their personal assets and invest the total $100,000 in purchasing the business. In this scenario, the full $100,000 amount is considered part of the investment, as the loan is secured by the investor’s personal assets.


Example 2:

The same business costs $100,000, and the investor has $50,000 in cash but no personal assets to leverage, so they seek a $50,000 loan from a bank. However, the bank requires the business itself to serve as collateral for the loan. In this case, only the $50,000 cash investment will be considered at risk, while the $50,000 loan secured by the business will not be counted toward the overall investment amount.


Importance of Investment Amount and Proportionality:


The amount of the qualifying funds invested into the business as weighed against the total cost of such an enterprise, as well as the percentage of investment in relation to the cost of the business are both considerations the adjudicating officer will assess when reviewing the E2 application.


1. Substantiality of Investment Amount:

The total investment amount plays a significant role in determining whether the E2 investment is deemed substantial.


2. Proportionality:

Another vital consideration is the proportionality of the investment amount to the overall cost of the business. The investment should align proportionally with the business’s total cost to strengthen your case.


In our examples above, example 1 demonstrates a stronger case of investment as the $100,000 worth of capital or assets aligns with the $100,000 cost of the business, achieving 100% proportionality. In contrast, example 2 exhibits a weaker case with a $50,000 investment and only 50% proportionality.


It is important to note, however, that percentage of investment is still viewed by officers on an inverted sliding scale. In other words, the lower the cost of the business (think of a small flower shop), the higher the percentage of required investment. On the flip side, a $10 million dollar investment into a $100 million dollar business may also qualify for an E2 given the sheer magnitude of the investment, even though the invested amount is just 10% of the cost.




It is crucial to understand the significance of the investment amount and proportionality when preparing your E2 visa application. Loans secured by the business or its assets cannot be considered part of the overall investment amount for an E2 investor visa. However, personal loans and unsecured loans collateralized by personal assets can be considered towards the investment, as well as other funding mechanisms.


We hope this blog post has provided valuable insights into the use of loans for an E2 investor visa. If you have any further questions or found this information helpful, please let us know in the comments section below. Don’t forget to give us a thumbs up if you found this post informative. Thank you for reading, and best of luck with your E2 visa journey!



[1] 9 FAM 402.9-6(B)(c)(1); 62 FR 41138 at 48142 (Sept. 12,1997).

[2] 9 FAM 402.9-6(B)(d)]—

Share this post...

Posted in ,
Ashoori Law
Based on 591 reviews
Jamal Albardwil
I was delighted with my experience. Mr. Ehsan Ashoori Was a professional, and free consultation meant free and informative. And he educated me on what to expect and do, the likely outcomes, and how to achieve it. I would highly highly recommend this... immigration law firm to anyone needing an immigration law firm.I wish I could give them 6 stars.100% more
Sanjeev Bhalla
Ashoori Law is a professional law firm with a great team. We had applied for my daughter's change of status visa and they handled it pretty well and we got the status change without any difficulty. I would strongly recommend them to anyone who... wishes to engage a immigration law firm. They will do a great job as was in our case. I'd like to thank Michael and Sergio as well their entire team for the fantastic work work they did for more
Graem Beddoes
Very grateful for the help and guidance in getting our E2
Carolina Marmolejo
Very proffessional law firm. My husband & I appreciated their attentive, meticulous and detailed work on our case. They always stayed communicated and responsive to us from beginning to end.
Kaveeta Ramnarine
Totally grateful to the Ashoori team for their excellent service. They are very responsive and knowledgeable, they go above and beyond for their clients.Special thank you to Attorneys Rebecca McCarthy and Ehsan Mehri for their continued support in... our more
Shyam Chandrasekharan
I wanted to express my heartfelt thanks for your exceptional guidance and expertise in securing my visa extension approval. Your professionalism, attention to detail, and dedication were instrumental in achieving this success. Your support and clear... communication throughout the process were invaluable. I'm deeply grateful for your outstanding more
Malia Hi’ilani
Ashoori Law is a very knowledgeable and thorough law firm, with a great team. They gave me confidence in my business plan by providing a free discovery call to see if it was worth pursuing. Very personable and available for all of my questions or... concerns throughout the process. I was granted my E2 change of status successfully. I would highly recommend them for all of your immigration more
Israt Jahan
AshooriLaw is a great choice for our case.they response fast and very helpful.
Beth Jinks
Ashoori Law again handled my green card travel document renewal application professionally, and they accurately predicted the processing time. I've tackled similar paperwork alone before, but have now been working with Ashoori for about five years... because they provide peace of mind that everything is handled correctly. Highly more
Chris Lejeune
At first I was hesitant hiring a lawyer from outside Texas that no one I knew personally dealt with however I am glad I did. These guys are very helpful and friendly. Their knowledge of my case and procedures was outstanding. 5 stars all day long.
Yuvraj Singh
I would highly recommend Ashoori law for any kind of immigration services. They are fast, their process is easy and they are professional. I would highly suggest them handle your immigration cases.
Mazen Hanana
Thank you for your amazing services as well as for your prompt response to all my queries.Your professional experience was very helpful in submitting, approving and getting my Re-entry permit
Very great! Love, love, love Ashoori Law and his team. They make you feel like family. This is the team that will definitely get the job done. Very friendly and professional!
Nyoka Bandoo
Very professional and looks out for your best interest at heart!
arsalan pervez
Hello sir u have watsap number
My wife & I recently engaged the services of Ashoori Law for Immigration services, and I must say that I am thoroughly impressed with their expertise and professionalism. From the moment I contacted them, they demonstrated a deep understanding of my... case and provided insightful advice that put me at ease. Their legal team, led by Micheal, displayed an exceptional grasp of the intricacies involved in my situation. The Ashoori Law team not only guided me through the entire legal process but also took the time to answer all my questions in a clear and concise manner. Their attention to detail and dedication to my case truly set them apart. I am pleased with the overall outcome and would recommend Ashoori Law for their top-notch legal more
Before contacting Michael Ashoori's firm, I had spoken to a few Immigration lawyers, NONE was as patient and responsive as Michael. His firm scheduled a call with an Attorney who turned out to be the most efficient and brilliant lawyer ever.... Stephanie DiPietro was simply amazing. The detail in her notes, cover letter and crisp responses to my plentiful enquires mostly done with a smile was always reassuring. I highly recommend this firm as they are worth much more than they more
I had an exceptional experience with Ashoori Law. I hired Ashoori Law Firm to help with my immigration process. They assigned me a dedicated legal assistant, Jeser, and an attorney, Matthew, to guide me through the process. I am truly grateful for... the responsiveness of Jeser and Matthew. They consistently answered all my questions and helped me prepare all the documents for the application. The team's friendliness and remarkable expertise stand out. I highly recommend Ashoori Law to anyone seeking legal services for more
Anas Khan
Michael's firm has been very helpful in processing, filing and taking the Re-entry permit to its successful approval. I needed help as I had to travel due to personal emergency for an extended duration and had a lot of questions with no time to... think. They gave us time and clarified all the questions over call, email giving proper directions. Some of the videos on YouTube posted by Michael also helped me figure out that I could reach out to them to take my application forwardThanks to Matthew, Clara, Milena and all the folks who more
Alyssa Sanders
I highly recommend this lawyer for all immigration needs. They were so extremely patient with my situation and my questions, and definitely legitimately cared about the experience had with them. Immigration can be a very difficult and scary... experience and they definitely offered peace of mind. Very Affordable for the quality of services provided. I would definitely use them again in the future and recommend for immigrantion law needsread more
Fauzia Usman
Thankyou so much Michael Ashoori and your Immigration Attorney Shruti Bali and all team member to help me process me and my family case of E2 Investor Visa. It took Approx. 10 months from Ontario Canada. I Never visit IN person to this Firm,... everything deal and process online. Ashoori Law serve Great Professional Service. Highly more
Sonia Rathour
Ashoori Law Firm has the most loyal Representatives and lawyers who really cares about their client. They always available to answer any question you have regarding your case and always give the best advise for your best.I got so lucky to have... immigration case in their more
Dinesh Perera
I am so glad I chose Ashoori Law for my E2 process. They handled my case professionally from start to finish. My circumstances were somewhat complicated and needed special attention in order to get me across the finish line. I must state that I was... extremely fortunate to have had Shruti as my attorney handling my case. She was always very responsive to all my questions and cleared my doubts in every instance. All documents were very carefully handled by her and checked over and over again prior to submission, which i believe is the key to getting the E2 approved. Thank you Michael, Shruti and the entire team for a professional and successful job more
Next Reviews
Michael Ashoori Headshot

Michael Ashoori, Esq.

President of Ashoori Law

I’m a U.S. immigration lawyer and I help families, professionals, investors, and entrepreneurs get visas, green cards, and citizenship to the United States.

Since starting my law firm, I’ve helped hundreds of people from all over the world with their immigration needs. I’m very passionate, hard-working, and committed to my clients.

Got a question? Send me an email.