Business Plan for E2 Visa
Visa to America’s team of consultants have been responsible for creating over 2000+ business plans during the past thirty-one years. The business plan, although unique to each person, contains common elements that are as equally important. Today we are going to share key points and some differences between a business plan, strategic business plan, and the E-2 business plan format.
A business plan is written to secure a loan. Loan officers and underwriters review it, generally, focusing on the financial aspects of the business that requires specific sets of key financials (e.g., leverage ratio, loan to value ratio and debt service coverage ratio) that give loan officers and underwriters an idea of the financial health of your business and your ability to successfully repay the loan.
A strategic business plan focuses primarily on different business goals (short/medium/long term), detailing strategies and tactics for the entire leadership/management team and a plan of action on how to achieve them. It would also include a breakdown of roles and responsibilities within the organization that incorporates a schedule for review, holding the owner accountable for following the plan. These details, although essential to a successful business plan, would not interest a loan officer or an equity investor.
The purpose of an immigration visa business plan is to show the USCIS officer evaluating your application that the business in which you are investing either has or will be able to satisfy the criterion by which each visa is approved. Each major U.S. business visa category, including E-2, EB-5 & L-1, are governed by different crucial criterion. Whoever writes the business plan must make it crystal clear to the USCIS officer that the business satisfies the criterion of the visa for which you are applying.
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The Format of an E-2 Visa Business Plan is Different
An E-2 visa business plan has the same sections found in other business plans such as an executive summary, business description (including a history of the business to date and an overview of the products and/or services it offers), market analysis, industry analysis, competitor analysis, management & personnel summary, strategy and implementation planning and financial analysis. But where if differs from business plans is the razor-sharp focus placed on the applicant, their background, and the future role the applicant will play in the business.
The E-2 business plan must convince the USCIS officer that the potential U.S. economic contribution and the business growth outlined in the business plan is based one-hundred percent on the approval of the E2 visa, the creation of jobs in the U.S. and the generation of tax revenue are all highly unlikely without the applicant’s direct involvement in day-to-day business operation in the United States.
Specific E-2 Visa Criterion
Like a business plan, specific sections must be dedicated to showing how the business will meet the E-2 visa criterion.
Business Description – The business plan will need to show that the business is a “bona fide” enterprise, that it operates using a permissible corporate structure, and that the applicant owns at least 50% of the business. It must also outline specifically how, in the context of the personnel and management plan for the business, they intend to “direct” and “develop” the business once they arrive in the United States. E-2 visa holders are approved because they are directing and developing the business.
Personnel & Management Summary – This section of the business plan must clearly show the business’ potential to create jobs.The business plan must also show the immigration status of both current and future employees. Meaning it must support the applicant, their immediate family, and two employees to satisfy the “marginality” requirement, which we will discuss next.
Financial Analysis – There are several points within the financial analysis of an E-2 visa business plan, traditional business plans don’t mention. Not only will this section provide financial projections like any other business plan, but it must also detail how the business will achieve sufficient success and profitability to support you (the investor), your dependents and employees, and create new jobs for the duration of the E-2 visa. There is a fine line between showing an optimistic future for your business to an USCIS officer and producing solid realistic projections. Reason being numbers from the initial business plan will be reviewed, as part of a renewal application, once the initial period of the E-2 visa is over. Meanwhile, the financial section will also need to show that a “substantial” amount of capital has been and will continue to be invested into the business. A substantial investment is determined by the proportion of funds being invested compared to the total cost to develop the business to the point of being operational. No minimum investment amount is specified in the regulations, but the investment must be “at-risk” and dedicated to the development and growth of the U.S. enterprise. Often, the majority of the required investment funds have already been invested or otherwise “irrevocably committed” at the time of application and this must be detailed in the plan and must match the information submitted exactly as part of the visa application.
Since an E-2 visa petition has very strict requirements, the E-2 immigration visa business plan should be written by a professional who is familiar with business immigration rules and regulations as well as the legal business guidelines of the United States.
A well-written business plan is how you will provide USCIS with all the information they need to conclude that your E-2 Visa petition meets the criteria for approval.
Besides that, it is very important that you go to the right place where you will get support you need throughout the entire process. The good news is that Visa to America has all the answers to all your questions and will provide you with that support.
Visa to America walks clients through the E2 Visa process every day. If you are thinking of moving to the U.S. to invest in a business and create a wonderful new life for you and your family, call Visa to America today! Our experienced E-2 Visa experts are standing by, ready to assist you!