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Hypothetical example: a Selwyn charter and outfitting operator agrees to buy a fuel dock and marine service shop in the United States, financing part of the purchase and holding part in escrow. Deciding which of those dollars count, and on what date they count, is most of the E-2 investment analysis.
At risk means capable of being lost
Capital qualifies when it is irrevocably committed to the enterprise and subject to partial or total loss if the business fails. Funds the buyer can still recall do not meet that description, which is why escrow terms are examined so closely. A conditional escrow that releases upon a defined event can work, provided the drafting reflects the purpose and the applicant can identify the operative clause. Money spent on the business — equipment, inventory, leasehold improvements, deposits that cannot be recovered — is generally easier to characterise than money merely earmarked, because the expenditure has already occurred and cannot be undone.
Borrowed funds depend on what secures them
Financing is not automatically excluded, but the security determines the answer. Where the applicant borrows against personal assets and is personally liable, the funds can generally be treated as the investor's own capital at risk, because the investor bears the loss. Where the loan is secured by the assets of the enterprise being acquired, it does not count as the investor's qualifying investment, since the risk sits with the business rather than with the investor. A Selwyn buyer structuring a purchase should therefore settle the financing structure with this distinction in view, because the same amount of money can qualify or not depending entirely on how it was raised.
Substantial and non-marginal are separate questions
Substantiality is proportionate: the investment is weighed against what it costs to buy or establish this enterprise, and there is no universal minimum figure. Marginality is a different test about the enterprise's capacity to produce more than a minimal living for the investor and family, presently or within a reasonable period, or to make a significant economic contribution. A well-funded purchase of a business that cannot support a household still has to answer the second question. Both are assessed on the real operation, so the file should rest on the enterprise's own records and realistic projections rather than on a generic plan.
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.