Read the general investor planning overview
Hypothetical example: a West Kelowna landscape contractor is buying a US landscaping and irrigation company whose owner is retiring. The seller offers to finance a portion of the price with a note secured against the company's trucks and equipment. The buyer needs to know what part of the purchase price will count as his investment for E-2 purposes, because debt secured by the enterprise's own assets is excluded, and the answer determines whether the counted amount is substantial relative to the cost of the business.
Split the purchase price by what secures each part
The treaty-investor rules count funds the investor has personally committed and put at risk. Cash from his own savings counts. Money borrowed against his West Kelowna home or other personal assets counts, because he bears the loss personally. A seller note secured by the landscaping company's vehicles, equipment or receivables does not count, because if the business fails the seller's recourse is against the business, not him. The first task is therefore to take the purchase agreement and the proposed note and assign each dollar of the price to one of those categories. If the seller would accept a personal guarantee secured by the buyer's own assets instead, the character of that portion changes and the counted amount rises.
Test the counted amount against the cost of the business
Substantiality has no fixed minimum; it is the counted investment compared with the total cost of purchasing the enterprise under an inverted proportionality test. For an established company the cost is the agreed price, supported by a valuation. If the buyer's qualifying funds cover the entire price, the proportionality showing is straightforward. If seller financing secured by the business covers half or more, there is no bright-line percentage that resolves the case: lower-cost enterprises generally require a higher invested proportion, and the file must analyze the actual purchase cost, the magnitude of the qualifying funds and the buyer's commitment. The comparison should use the real price and financing terms and should show funds already paid or held in qualifying escrow rather than merely promised.
Keep the rest of the E-2 case in view
The financing structure does not change the other requirements. The buyer is a Canadian citizen, so treaty nationality is satisfied provided he holds at least half the company after purchase; a seller who retains a minority stake for a transition period is compatible, a seller who keeps control is not. He must develop and direct the business, which the management plan and his ownership establish. Marginality is addressed by the company's trading history, payroll and projections, which should show income beyond his household's needs. He applies for an E-2 visa at a US consulate before entry, and his spouse, once in E-2 status, is employment-authorized incident to that status. There is no direct path from E-2 to permanent residence.
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.