Investment Amount and Source of Money in E-2

“How much money is required for E-2?” The answer to the question cannot be given without looking at what the business is. There is no fixed dollar threshold applied to all applications in the regulation. The investment must be significant compared to the actual cost of the business, be at commercial risk, and its legal source must be disclosed. ¹

The budget examples in this guide are for illustrative purposes only. It is not an assessment that a certain amount is sufficient for approval or that a particular business will be profitable.

Do not separate the investment amount from the total cost of the business

The cost of establishing or acquiring a business is important in assessing the proportionality of the investment. In a lower cost business a greater share of the total cost can be expected to be tied up. The same $80,000 doesn't mean the same for a small service business as it does for a much more expensive manufacturing facility. ¹

Therefore, instead of just showing the total in the bank account, it should be explained what the job requires. The purchase price, initial expenses and resources to continue the activity can be separated. It should be clear which amount is actually spent, which is bindingly committed, and which is available reserve. ¹

Money spent and money waiting are not the same

In E-2, the investment must be under commercial risk and tied to the business. Money sitting in the account but not yet properly committed to the business does not, on its own, meet the investment requirement. A promise to send money in the future does not replace the current investment. ¹

In documenting expenses, the payment receipt can be matched with the relevant contract or invoice. It should be understood how an equipment payment relates to the business, which period the lease payment covers, or which assets the purchase amount belongs to. This is not a mandatory table format, but a method of making evidence traceable.

Show the source chain from start to finish

The source statement must show how the money belongs to the investor and how it was obtained lawfully. Income and savings records if savings are used; If there is a real estate sale, sales and payment documents; If there is a gift, records explaining the actual transfer and source can be evaluated. ¹

If money moved through different banks or currencies, each movement must be linked. A transfer from one account to another does not by itself reveal the initial source of the money. Arranging the documents chronologically and explaining the differences in amounts makes it easier to understand the source. ¹

What changes when a loan is used?

Debt financing is not evaluated the same way in all cases. There is a difference between a resource where the investor assumes personal risk and which is based on appropriate personal collateral, and a debt which is secured by the business's own assets. The debt agreement and collateral structure should be clearly examined. ¹

The mere appearance of the loan in the name of the investor may not be sufficient explanation; It actually matters which asset is at risk and how the fund is tied to the business. Therefore, the financing model should be evaluated from both commercial and immigration aspects before transferring money. ¹

Does an escrow account completely eliminate investment risk?

Arrangements such as an escrow account may be considered during the purchase or transfer. However, simply keeping the money with a third party does not automatically meet the E-2 investment requirement. The binding nature of the transaction, withdrawal conditions and the actual commitment of funds should be examined. ¹

While the search for commercial assurance is understandable, it should not be assumed that an E-2 investment can be made without assuming any real risk. The immigration and commercial consequences of the contract to be used require separate evaluation. It is not enough to copy a generic internet sample directly into the contract.

Separate working capital from personal living budget

The resources required to run the business and the family's personal moving and living expenses are not the same item. When explaining the investment's contribution to the business, personal housing or daily living expenses should not automatically be counted as a business investment. The actual nature of the expenditure is important. ¹

The family's living budget should be planned separately. The E-2 marginality review also includes a broader assessment of capacity than simply an estimate of income to cover the family's expenses. The expected economic contribution of the business should be associated with the realistic activity plan. ¹

Preparing a strong file without exaggerating the numbers

It is not correct to count the same payment twice to create a seemingly higher investment amount, to represent a personal expense as a business expense, or to write off the estimated amount as an actual expense. Totals on file must be consistent with bank, contract and accounting records. ²

A resource-use table can be prepared before the application: The initial source of the fund, its transfer to the investor, its transfer to the USA and its use in the business. When these four stages are open, “how much have I invested?” In addition to the question "Which money was tied to which risk and to which work?" The question is also answered. ¹