Proportionality Test
E-2 visa · Reinvent NY glossary
The proportionality test determines whether the investment amount is 'substantial' relative to the total cost of the business. For low-cost businesses ($100,000 or less), investors typically need to commit 80-100% of the total cost. For mid-range businesses ($100,000-$500,000), 60-80% is common. For larger enterprises ($500,000+), 50% or more may suffice. A $150,000 investment in a $200,000 business (75%) has a strong case. A $150,000 investment in a $2 million franchise (7.5%) would likely be denied.
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