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ELNORA · E-2 FIELD GUIDE

Does having enough money available establish the E-2 investment condition?

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THE DIRECT ANSWER

No. Identify the actual substantial lawful capital committed at risk to the enterprise. An available balance is not automatically invested capital.

Read the commitment rather than the purchasing power

There is no universal fixed minimum. The real transaction and business costs matter, along with treaty ownership, directing authority and the operating enterprise.

The consular standard asks whether the applicant is in a position to develop and direct the enterprise, and treats ownership of at least fifty percent, or operational control through a managerial position or other corporate device, as ordinarily sufficient. An investor who owns the company, hires the staff, manages the cash, signs the lease and answers for the losses is developing and directing the enterprise even though a brand agreement dictates signage, systems and prices. A new enterprise can qualify if it will be real and active, and it must not be marginal, generally showing capacity beyond a minimal living or significant economic impact within five years after normal business activity begins. The enterprise must be at least 50 percent owned by Canadian nationals and the investor must develop and direct it, so a 40 percent minority stake under a U.S. majority owner fails the ownership and control requirement before anything else is examined.