Analysis of Approval and Denial Rates for E2 Visas in 2023
The E2 visa, a non-immigrant pathway enabling entrepreneurs from eligible treaty nations to invest in US enterprises and relocate to the United States along with their staff, has witnessed a notable upswing in popularity in recent times. This article delves deeply into an extensive examination of the endorsement and rejection percentages associated with this business-oriented visa during the current year.
Insight into the E2 Visa
The E2 visa stands as a renewable non-immigrant authorization that bestows qualifying entrepreneurs from treaty-affiliated countries with the opportunity to fund US-based businesses. In contrast to the EB-5 Visa, the E2 visa does not stipulate a specific minimum investment quantum; this figure tends to fluctuate considerably. A sum around $100,000 could meet the criteria for a substantial investment.
One distinctive feature of the E2 visa is its lack of necessity for a predetermined count of American employment opportunities to be generated or maintained. The visa holds the potential for indefinite extensions, contingent on the enterprise’s sustained viability. To pursue a Green Card, it becomes imperative to satisfy the precise prerequisites pertinent to a given immigration route.
Additionally, the E2 visa extends the privilege for the visa holder’s spouse to work within the US, while their children enjoy residence and educational opportunities in the country up until they reach 21 years of age.
Evaluation of Approval and Denial Rates
In the year 2019, the E2 visa approval rate persisted at 89%, showcasing consistency in the face of stricter regulations affecting certain E2 treaty nations. The overall landscape of the E2 visa has thus far remained comparatively stable.
An overview of approval rates spanning 2017 to 2019 reveals the following trends:
During the same timeframe, the E2 visa rejection rate for 2019 stood at 11%. Despite the implementation of more stringent immigration policies, the denial rate did not witness an escalation. This underscores the notable approval rate of the E2 visa when juxtaposed with other non-immigrant visa categories.
Influence of Policy Changes on the E2 Visa
While the approval rate maintained its stature during the previous administration under President Trump, a series of regulatory alterations surfaced across various E2 treaty nations. These shifts predominantly stemmed from modifications introduced by the US Government. Notably, the Department of State was mandated to evaluate all non-immigrant visa reciprocity agreements to ascertain their reciprocity genuineness as per Section 10 of Executive Order 13780.
A few prominent policy changes during the Trump era encompassed:
– France: Reduction of E2 visa validity from 60 months to 25 months.
– Netherlands: Shortening of E2 visa validity from five years to three years, accompanied by an elevation of the visa fee from $0 to $2,228.
– Australia: A staggering 3303.81% upsurge saw E2 fees for Australian nationals rise from $105 to $3,574.
– Israel: E2 visa validity diminished from five years to two years.
– Iran: Exclusion of Iranian citizens from E2 visa eligibility.
Nations with E2 Visa Prevalence in 2019
Japan emerged as the foremost issuer of E2 visas, primarily catering to E2 managers translocated to the US for roles within E2-affiliated businesses. Other countries prominently figuring in E2 visa counts encompassed Germany, which was subsequently supplanted by Canada as the second-highest contributor, and France, witnessing a decline in E2 visa rankings due to truncated validity durations.
E2 Visa Distribution by Continent
Approximately 80% of E2 visas conferred in 2019 emanated from Asian and European sources. Notably, the rate of E2 visa allocation in North America observed an ascent from 12% to 15%, largely underpinned by substantial Canadian contributions.
E2 Visa’s Elevated Approval Rate
In juxtaposition to alternative non-immigrant visas, the E2 visa’s commendable endorsement rate stood at 92% in 2021. The E2 visa’s approval rating exhibited relative stability even amidst heightened immigration strictures experienced under the preceding Trump administration. The approval rate hovered around 89% in 2019 and approximately 88% in 2020. By comparison, the denial rate for non-immigrant visas across the board in FY 2020 outpaced the E2 visa refusal rate by over two-fold.
Preservation of E2 Visa Leadership during the Trump Era
Under President Trump, the E2 visa hierarchy across countries and continents remained largely unchanged. However, noteworthy alterations encompassed escalated fees and reduced validity spans. E2 visa aspirants are well-advised to identify robust enterprises capable of fulfilling renewal prerequisites post the initial validity period.
Scrutinizing E2 Visa Success
The E2 visa classification stands as an alluring conduit for foreign nationals aspiring to venture into the realm of US enterprises. Nonetheless, the pursuit of an E2 visa application does carry substantial financial exposure for aspirants. Given the financial jeopardy inherent in unsuccessful applications, a comprehensive comprehension of E2 visa requisites becomes paramount.
E2 Visa Triumph Rates
Data from the Department of State for 2021 disclosed an E2 visa success rate of 92.51%.
Fiscal Year-wise E2 Visa Overview
The following figures encapsulate E2 visa disbursements, rejections, and total applications for selected fiscal years:
– 2018: Issued – 41,181, Rejected – 13,489, Total – 54,670, Success Rate – 75.33%, Refusal Rate – 24.67%
– 2019: Issued – 43,286, Rejected – 5,115, Total – 48,401, Success Rate – 89.43%, Refusal Rate – 10.57%
– 2020: Issued – 23,493, Rejected – 3,266, Total – 26,759, Success Rate – 87.79%, Refusal Rate – 12.21%
– 2021: Issued – 33,129, Rejected – 2,683, Total – 35,812, Success Rate – 92.51%, Refusal Rate – 7.492%
Instances of refusal are often linked to the lack of professional guidance, rendering applicants more susceptible to falling short in meeting E2 eligibility or evidentiary benchmarks.
Causes for E2 Visa Application Denial
Every E2 visa application, inclusive of the business blueprint and accompanying documents, undergoes scrutiny against eligibility benchmarks. Aspirants should be attentive to the following considerations to mitigate the likelihood of denial:
– Substantial Investment: The magnitude of investment must attain the threshold of being deemed “substantial,” albeit this interpretation varies with the specific enterprise.
– Legitimate Funds: Applicants must furnish conclusive evidence in the stipulated format to substantiate the lawful origin of funds utilized for E2 investments.
– Non-Marginal Enterprise: Applicants need to illustrate that their enterprise is poised to generate ample revenue to sustain both the investor’s family and the broader economic ecosystem through job creation and expansion.
– Personal Financial Commitment: E2 investors should demonstrate their ongoing financial commitment, with investments either already made or held in escrow, ready for deployment in a US business post-visa endorsement. Mere possession of funds in a bank account typically falls short.
– Entrepreneurial Involvement: E2 investors must exhibit their intent and capability to actively partake in the business’s growth and administration.
– Ties to Home Country:
The investor is required to affirm their intention to depart from the US upon the expiry of their E2 visa status, although in practice, extensions can be procured indefinitely, obviating the immediate need for departure.
Recourse in the Event of E2 Visa Application Rejection
Should an E2 visa application meet with refusal, applicants are advised to seek counsel to explore potential avenues, which may encompass an appeal, a fresh E2 application, or an alternative visa category. In many cases, it proves prudent to initiate a fresh application or explore distinct visa options.
In case of resubmission, it’s essential to specifically address the grounds for rejection. This could involve supplementing the visa application with corroborative documents tailored to the visa criteria. Additionally, a thorough review of application forms and supporting documentation, particularly the business plan, becomes imperative. Factual inconsistencies or contradictions can raise apprehensions and impede visa approval.
Exploring Alternative Visa Routes
While the E2 visa path may not align with every aspirant’s circumstances, an E2 visa rejection could prompt consideration of alternative immigration trajectories. The EB5 visa, classified as an immigrant investment visa, or potential H visa categories might be avenues to explore, though the EB5 route might entail protracted processing times.
Investment Prospects for E2 Visa Applicants
Foreign entrepreneurs embarking on E2 visa applications are presented with a diverse array of investment opportunities. The ensuing categories represent typical domains pursued under the E2 visa:
1. Tech Industry Startups: A growing trend among E2 visa applicants is investment in technology startups, leveraging the US’s thriving tech ecosystem offering innovation and growth prospects.
2. Franchises: The E2 visa facilitates exploration of franchise investments, affording access to proven business models with established track records.
3. Real Estate Ventures: E2 visas open doors for foreign investors interested in the vibrant US real estate market.
4. Manufacturing: The manufacturing sector holds promise for E2 visa applicants seeking rewarding investment avenues.
5. Service-Based Enterprises: Encompassing a wide spectrum of industries, service-based businesses also stand as viable investment targets.
E2 Visa Popularity Trajectory
The appeal of E2 visas demonstrated an incremental surge over the four-year span culminating in 2016. This period witnessed a notable upswing from around 35,000 in 2013 to an excess of 44,000 in 2016. Noteworthy leaders in approved E2 visa applications comprised nationals of Japan (13,609) and Germany (4,329). The impressive approval rate exceeding 90% renders the E2 visa category enticing to potential investors.
Outlook under President Biden and Immigration Reform
President Biden’s disposition towards immigration has been characterized by a more positive stance compared to his predecessor, President Trump. However, navigating substantial immigration reform legislation remains a formidable challenge. Thus, the fate of visa categories like H-1B, J-1, and E-2 might not experience drastic transformations.
Constructing a Successful E2 Visa Application
To optimize prospects of a successful E2 visa application, adhering to the following recommendations is prudent:
1. Financial Investment: Applicants must demonstrate an active investment endeavor in progress, with the investment deemed “substantial,” or funds earmarked in escrow for investment should the E2 visa be sanctioned.
2. Enterprise Authenticity: The business venture must operate as a legitimate commercial entity, an active entrepreneurial enterprise, overseen by the investor in a managerial capacity.
3. Non-Marginality Criterion: The business’s projected or current revenue generation should surpass mere subsistence, aiming to support both the investor’s family and stimulate broader economic effects through job creation.
4. Financial Involvement: E2 investors should establish their involvement by showcasing ongoing investment actions. Visa approval typically demands evidence of money invested or held in readiness to invest in an existing US enterprise upon visa issuance. Passive bank account holdings tend to fall short.
5. Managerial Capability: E2 investors must prove their commitment to guiding the enterprise’s development and leadership.
6. Home Country Ties: Investors should declare their intent to eventually depart from the US upon E2 visa status expiration, despite the possibility of indefinite extensions.
Additional Visa Avenues
In tandem with the E2 visa, various other US visa types are available contingent on an individual’s circumstances. Common employment-oriented visas encompass:
– L1 Visa: Suited for intra-company transferees in managerial, executive, or specialized knowledge roles.
– H1B Visa: Catering to specialized occupations necessitating theoretical or technical expertise.
– E2 Visa: Tailored for investors with significant stakes in a US enterprise, along with managerial or essential skills employees. Restricted to specific nationalities.
– O1 Visa: Geared towards individuals showcasing extraordinary talents in fields like arts, sciences, education, business, or athletics.