Strategies for Avoiding E-2 Visa Denial Due to Marginality

Marginality is a common reason for E-2 visa denials. A business that only supports the investor’s basic living needs, without room to grow or hire, is considered marginal under U.S. immigration law. To qualify, the business must have the capacity to create real economic value in the United States. The regulation (8 CFR 214.2(e)) requires the business to have either a present or future ability to generate more than minimal living income. This means the investment should fund a business that does more than just cover the owner’s salary. Your business should be able to support your personal cost of living in the United States. This includes rent or mortgage, food, transportation, health insurance, and other essential expenses. If the business cannot support these basic needs without outside income, it may be considered marginal. Equally important, your business must cover its own operational costs. That includes rent or lease payments, payroll for U.S. employees, utilities, inventory, insurance, licensing fees, and marketing. A business that cannot meet its own expenses without ongoing outside support raises serious concerns.

Strategies to Avoid a Marginality-Based Denial

1. Show a path to profitability

Your business plan must present a realistic timeline for generating profit. Financial projections should show how the business will move beyond breakeven. Use industry data and reasonable assumptions to support your forecast.

2. Plan for hiring U.S. workers

A hiring plan helps prove the business has economic impact. Even if you start small, include clear timelines and job roles you expect to fill within the first few years. This demonstrates intent to contribute to the labor market.

3. Include supporting documents

If your business is new, add supplier contracts, pre-launch marketing plans, or client letters of intent. These help prove the business is active and structured for growth.

4. Avoid one-person models with no scale

Sole-proprietor operations with no growth potential often appear marginal. Choose a model that allows for staff, expansion, and long-term revenue growth. Meeting the E-2 standard means showing that your business will do more than just support you. It should operate, grow, and generate value beyond your personal income.