Marginality is one of the most common reasons an E-2 visa application gets denied. Under U.S. immigration law, a marginal enterprise is a business that does not have the present or future ability to earn more than what the investor needs for basic living expenses.
If a business only covers the investor’s personal costs and shows little potential to grow or hire, it may be considered marginal. The E-2 visa is designed for investments that create measurable economic value in the United States, not simply income for the investor.
To qualify, the business must either:
- Currently generate more than minimal living income, or
- Be capable of doing so within five years from the date E-2 classification begins.
When a business appears marginal
A business may raise marginality concerns if it:
- Pays only the owner’s salary
- Depends on outside funding to remain open
- Has no hiring plan or growth potential
- Cannot meet both personal and operating expenses
The business should support the investor’s cost of living, including housing, food, transportation, and health insurance. It must also pay its own expenses such as rent, payroll, utilities, inventory, insurance, and marketing. A business that cannot do both is often viewed as marginal.
Examples of marginal and non-marginal businesses
Marginal example:
A single-person online consulting firm earns just enough to cover the investor’s rent and personal bills. There are no employees and no plan to expand.
Why it is marginal: It supports only the investor and provides no clear economic benefit to the United States.
Non-marginal example:
A small café employs two baristas and one part-time baker. The investor funds equipment, lease improvements, and marketing. The plan projects steady profit and two more hires within three years.
Why it is not marginal: The café creates U.S. jobs, contributes to local spending, and demonstrates realistic growth potential.
How to Avoid a Marginality-Based Denial
1. Show a path to profitability
Prepare a business plan with credible financial projections. Explain how and when the company will move beyond breakeven. Use reliable data from your industry to support the numbers.
2. Plan to hire U.S. workers
A hiring plan shows that your business will contribute to the U.S. labor market. List job titles, expected start dates, and estimated wages for future employees.
3. Provide supporting documents
If your business is new, include supplier contracts, marketing materials, client letters of intent, or early sales records. These documents show that the business is active and designed for growth.
4. Avoid one-person models
Businesses built around one individual with no plan for expansion are high risk for denial. Choose a structure that allows for future staff and sustainable revenue growth.
Key Point
An E-2 enterprise must do more than cover personal expenses. It must show the ability to operate independently, grow over time, and contribute to the U.S. economy through income and employment. A clear business plan, credible projections, and evidence of economic impact are essential to meeting this standard.
Official Sources
- U.S. Citizenship and Immigration Services (USCIS): E-2 Treaty Investors
- U.S. Department of State (DOS): 9 FAM 402.9 – E-2 Visa Guidance