A substantial investment for the E-2 visa is defined by a proportionality test rather than a fixed dollar amount. The investment is determined as sufficient if it ensures the business’s success. The U.S. Department of State’s regulations state that an investment must be:

• Significant relative to the total cost of the business – This means that a higher-cost business would require a larger investment, and the opposite would be true of a smaller business. Generally, an investment of $100,000-$150,000 is considered substantial, but lower amounts have been approved in some cases.

• Sufficient to ensure business viability – this indicates that the investment should be large enough that the business is likely to succeed and not merely a speculative venture. 

• Irrevocably committed – To meet this requirement, the investor must place their funds at risk, meaning the money is already spent on business expenses, inventory, equipment, or leases. Passive investments (such as stocks or undeveloped land) do not qualify.

Ultimately, the investment must show that the business can generate more than just a minimal income for the investor and their family.