IN THIS GUIDE · Ask the seller the questions that decide whether the purchase is an E-2 investment
Start with the E-2 eligibility and application overview
Questions for the seller before the offer
Hypothetical example: a Portugal Cove-St. Philip's master electrician is selling a rental property and using the proceeds to buy a five-employee electrical contracting company in a U.S. state where the owner must hold a contractor's licence. Before signing, the electrician should ask: what exactly is being sold, assets or shares; which employees will stay and on what terms; whether the state licence is held by the seller personally, and if so who will hold it after closing; whether any customer contracts are terminable on change of ownership; and whether the seller will accept a closing conditioned on E-2 issuance. The answers determine whether the enterprise will be real, operating and directable on the day the investor arrives.
Money at risk means money that can be lost
Funds sitting in a Canadian account are not invested, and neither is a refundable deposit. The investor must have committed the funds irrevocably, or committed them subject only to the visa being issued, so that they are exposed to loss if the business fails. Proceeds of a documented property sale, savings and even loans secured on the investor's own assets can qualify; a loan secured on the U.S. business itself is not at risk in the required sense. The file should trace the sale, the transfer into escrow or to the seller, and the escrow agreement's release terms.
Substantial and not marginal
There is no fixed minimum. Substantial is judged in proportion to the total cost of purchasing the established business, so a full-price purchase of a small contracting company is proportionally stronger than a fractional investment in a large one. Marginality is separate: the business must have the present or future capacity, generally within five years, to generate more than enough income to support the investor and family, or to make a significant economic contribution through hiring. Five existing employees and a hiring plan answer that question far better than a projection alone.
Direct it, and remember E-2 does not lead to a green card
The investor must develop and direct the enterprise, which ordinarily means owning at least half or holding operational control. An investor who will hold shares while a U.S. partner holds the state licence and runs the jobs should reconsider the ownership and management structure before closing. An E-2 spouse is employment-authorized incident to status; children may study but not work and age out at 21. E-2 status can be renewed while the enterprise continues to qualify, but it provides no direct path to permanent residence.
Sources reviewed 2026-09-07. This guide covers a preparation focus; it is not an individual eligibility assessment.