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Hypothetical example: a Canadian citizen in Centre Wellington buying sixty percent of a US electrical services company must show treaty nationality for the investor and at least fifty percent of the enterprise, funds irrevocably committed and at risk, a substantial investment in a real non-marginal enterprise, and ownership or operational control sufficient to develop and direct it. An escrow that releases on visa issuance and returns funds on refusal is one accepted means of showing commitment. E-2 provides no direct path to permanent residence, and the official requirements should be checked before money moves.
Draft the escrow with one condition only
Officers accept funds held in escrow as committed when release is conditioned solely on visa issuance, because at that point the investor cannot recover the money for any other reason. Additional conditions, such as the buyer's satisfaction with due diligence or a financing contingency, undermine irrevocability. The agreement should name the escrow agent, state the amount, identify the seller as the recipient on issuance, and provide for return to the buyer only if the visa is refused. Include the fully signed purchase and shareholder agreements as exhibits. Keep the deposit confirmation from the escrow agent, because the officer will want to see that the money actually arrived, not merely that an agreement was signed.
Trace the funds from the Canadian business to the escrow
The lawful-source requirement is met by showing where the money came from and how it reached the escrow. For a contractor, that usually means corporate financial statements showing retained earnings, a dividend or shareholder loan resolution moving funds to the individual, personal bank statements receiving them, and the wire to the escrow agent. If part of the price is borrowed, the loan must be secured by the applicant's own assets, such as a Canadian home, not by the assets of the US company being bought. Tax returns for the relevant years should be included. Gaps of a few days are fine; unexplained deposits from third parties are not. Prepare a one-page schedule that lists each transfer with date, amount and supporting document.
Use the seller's records to prove substantiality and a real business
Substantiality is judged proportionally against the cost of the enterprise, so the purchase agreement, an equipment valuation and the seller's financial statements set the denominator. Buying sixty percent with fully committed funds is strong; a small deposit against a large price is weak. Marginality is answered by payroll registers showing employees other than the owner and by revenue history showing income beyond a family's living needs. Ask the seller for three years of statements and tax returns, current payroll, the lease, licences and insurance, and a summary of customers. Read the shareholder agreement for control clauses, and confirm that state contractor licensing can continue under the new ownership from closing day, since a business that cannot legally work is difficult to call operating.
What else is on your mind?
Is there one minimum investment that guarantees E-2 eligibility?Is holding money or owning an asset enough for E-2?Editorial source review: 2026-09-07. General preparation guidance, not an individual assessment.