E-2 Visa Glossary: 60 Terms Explained in Plain English

This glossary explains the E-2 terms you will meet in the Foreign Affairs Manual (9 FAM 402.9), the regulations at 8 CFR 214.2(e), USCIS forms and your attorney’s letters. Each definition is short and plain; where we have a full guide, the entry links to it. Terms are grouped alphabetically, with numbered sections such as 221(g) at the end.

A to B

Admission. Permission from Customs and Border Protection (CBP) to enter the U.S. in a given status. E-2 travelers are admitted for up to two years per entry, regardless of how long the visa is valid. See E-2 travel rules.

Aging out. When a child of an E-2 investor turns 21, the child loses derivative E-2 status and needs his or her own status, often F-1. See E-2 children aging out.

AMIGOS Act. A 2022 law (part of Public Law 117-263) that, from December 23, 2022, requires anyone who obtained treaty citizenship through a financial investment, and was not previously in E status, to have been domiciled in that country for at least three continuous years before applying. It targets citizenship-by-investment routes.

Annotation. Text the consular officer prints on the visa. For E-2 visas it usually names the enterprise, and for family members it names the principal investor and the relationship.

At risk. The investment must be subject to partial or total loss if the business fails. Loans secured by the business’s own assets are not at risk; loans secured by your personal assets can be.

Business plan. A document describing the enterprise, market, hiring plan and five-year financial projections. It is not required by statute, but in practice consulates expect one. See E-2 business plan requirements.

B-1/B-2 visitor. A visitor visa (or ESTA entry) used for short trips such as scouting locations or meeting sellers. Visitors cannot work in or run the business.

C to D

CBI (citizenship by investment). A second citizenship obtained by investing in or donating to a country’s program, for example in some Caribbean states. For E-2 purposes it triggers the AMIGOS Act three-year domicile requirement. See E-2 through Grenada.

Change of status. Switching to E-2 from another nonimmigrant status without leaving the U.S., by filing Form I-129 with USCIS. Travel later requires an E-2 visa from a consulate. See E-2 change of status.

Commercial enterprise. The business in which the investor invests. It must be a real, active, for-profit undertaking that produces goods or services, not a passive holding.

Company registration. Some consulates let an E-2 company register its documents once so that later employee applications refer to the same file. Procedures vary by post.

Consular processing. Applying for the E-2 visa at a U.S. embassy or consulate abroad, with an interview. Since September 6, 2025, applicants generally must apply in their country of nationality or legal residence. See E-2 application process.

Control. The investor’s power to develop and direct the business, usually through at least 50% ownership, 50/50 negative control, or operational control through a management role.

Derivative. A spouse or unmarried child under 21 who receives E-2 status through the principal. Derivatives do not need to be nationals of the treaty country. See E-2 spouse and children.

Develop and direct. The statutory test that the investor is coming to run the business, not just to fund it. It applies to the investor, not to employees.

DS-160. The online nonimmigrant visa application every E-2 applicant completes. For the principal investor, the E-specific questions are built into it. See E-2 forms.

DS-156E. The treaty trader and investor application form. It is still required for E-2 executives, managers and essential employees, while principal investors answer those questions in the DS-160. See DS-156E.

Dual intent. Permission to seek a green card while in a temporary status. The E-2 is not a dual-intent visa, although an unequivocal intent to depart when status ends is normally enough. See E-2 dual intent.

Dual national. Someone with two citizenships. A dual national chooses which treaty nationality to use for the E-2, and the business and E-2 employees must share it.

E

E-1 (treaty trader). The sister visa for nationals engaged in substantial trade principally between the U.S. and their treaty country. See E-1 vs E-2.

E-2 (treaty investor). A nonimmigrant visa for a treaty national who has invested, or is actively investing, a substantial amount in a U.S. business that he or she will develop and direct. Also used for qualifying employees of that business. See the E-2 visa guide.

E-2 employee. An executive, supervisor or essential employee of an E-2 company who has the same treaty nationality as the company. See E-2 employees.

E-2S. The I-94 admission class for the spouse of an E-2 principal, used since January 30, 2022. It is acceptable evidence of work authorization for Form I-9. See E-2 spouse work authorization.

E-2Y. The I-94 admission class for dependent children of an E-2 principal. Children with E-2Y may study but are not authorized to work.

EAD. An Employment Authorization Document (Form I-765). E-2 spouses no longer need one to work, but may apply for one as optional proof.

Escrow. An arrangement where purchase funds are held by a third party and released when a condition, such as visa issuance, is met. Under the FAM, funds held in escrow under a binding purchase agreement can count as irrevocably committed.

Essential employee. An employee with special skills needed for the business’s efficient operation, judged case by case. Ordinary skilled workers can qualify for start-up or training periods.

Executive or supervisory employee. An employee whose principal function is managing the business or a major part of it, not routine work.

F to I

FAM (Foreign Affairs Manual). The State Department’s official guidance to consular officers. The E-2 chapter is 9 FAM 402.9, last revised February 17, 2026.

Fifty percent rule. At least 50% of the business must be owned by nationals of the treaty country. Shares held by U.S. permanent residents do not count. See E-2 ownership rules.

Form I-129. The USCIS petition used for an E-2 change of status or extension inside the U.S. See E-2 forms.

Form I-539. The USCIS application family members use to change or extend their own status alongside the principal’s I-129.

I-94. The arrival and departure record that shows your class of admission and the date your authorized stay ends. The I-94 date, not the visa expiration date, controls how long you may stay.

INA 101(a)(15)(E)(ii). The section of the Immigration and Nationality Act that creates the E-2 classification.

Intent to depart. E-2 applicants must intend to leave the U.S. when their status ends. They do not need to keep a home abroad.

Investment. Placing capital at risk in a commercial sense to generate a return. Inheriting a business does not count as an investment.

Irrevocably committed. The funds are already spent on or legally bound to the business, not just available in a bank account. See E-2 minimum investment.

L to P

LPR (lawful permanent resident). A green card holder. An LPR cannot be an E-2 investor, and shares owned by LPRs do not count toward treaty ownership.

Marginal enterprise. A business that lacks the present or future capacity to generate more than a minimal living for the investor and family. Future capacity should be realizable within five years of starting operations. See E-2 denial reasons.

MRV fee. The nonrefundable visa application fee, $315 for each E visa applicant. See E-2 visa cost.

Negative control. Under the FAM, two equal 50/50 partners with full management rights each have control, because neither can act without the other. With three or more equal partners, none has control through ownership alone.

Passive investment. Holding assets such as undeveloped land, idle real estate or stocks without running an active business. Passive investments do not qualify. See E-2 and real estate.

Path of funds. The documented trail showing how money moved from its source to the U.S. business. See E-2 source of funds.

Premium processing. A USCIS service that guarantees action on an E-2 Form I-129 within 15 business days, for a fee of $2,965 for requests postmarked on or after March 1, 2026. See E-2 processing time.

Principal investor. The treaty national who invests and develops and directs the business, as opposed to employees and family members.

Proportionality test. The FAM method for judging whether an investment is substantial: compare the investment with the total cost of buying or establishing the business, on an inverted sliding scale.

R to S

Real and operating. The enterprise must be an active business, not a paper company. Physical office space is not strictly required, but the business must be running or close to starting operations.

Reciprocity. The schedule, set nationality by nationality, that fixes E visa validity (from three months to five years), number of entries and any reciprocity fee.

Renewal. Applying for a new E-2 visa or a USCIS extension. There is no limit on the number of renewals while the business qualifies. See E-2 renewal.

RFE (request for evidence). A USCIS notice asking for more documents before deciding an I-129.

Source of funds. Evidence that the investment came from a lawful source such as savings, gifts, inheritance, property sales or personal loans. Funds do not need to come from abroad.

Substantial. An amount that is significant relative to the cost of the business, enough to ensure its successful operation and to support the investor’s commitment. There is no fixed minimum.

Substantive change. A fundamental change to the E-2 company, such as a merger, acquisition, sale of the business or a change in ownership that affects treaty nationality. It requires a new USCIS approval or a new visa. See E-2 substantive change.

T to V

Treaty country. A country with a treaty of commerce and navigation, or a qualifying investment treaty or law, with the U.S. that provides E-2 status. See E-2 treaty countries.

Treaty national. A citizen of a treaty country. Residence or a long-term visa from that country is not enough.

Visa. The foil in your passport that allows you to request admission. It can expire while you remain lawfully in the U.S. on a valid I-94.

Visa Integrity Fee. A $250 fee created by Public Law 119-21 in July 2025. Implementation has been uneven, so confirm with your embassy whether it currently applies.

Numbers and sections

214(b). The section of immigration law that presumes visa applicants are intending immigrants unless they show otherwise. It also applies to E-2 family members.

221(g). A temporary refusal used when the consular officer needs more documents or administrative processing. Once the requested items are provided, the case can usually proceed without a new application.

8 CFR 214.2(e). The federal regulation that governs E status inside the U.S., including admission, extensions and substantive change.

Next steps

If you have read this far, the next step is to test the terms against your own case. Try the E-2 eligibility checker, estimate a proportional investment with the investment calculator, or book a consultation to talk through your business.