IN THIS GUIDE · Identify the day the funds stop being recoverable
Start with the E-2 eligibility and application overview
Read the escrow terms as the commitment test
Funds that can be returned if the buyer changes their mind are not yet irrevocably committed and at risk. What converts a payment into an investment is the loss of the ability to recall it, which is written in the escrow and cancellation clauses rather than in the purchase price. A conditional escrow that releases only upon issuance of the status is a recognised approach, but the terms matter and should be drafted with the requirement in view. Buying first and reading later leaves the applicant proving commitment from documents drafted for other purposes.
Establish nationality on both sides of the transaction
Canada is a treaty country, but the applicant's citizenship is only half the requirement. The enterprise itself must be at least fifty per cent owned by nationals of the treaty country, so the ownership chain above the U.S. business has to be traced and documented. Where partners, holding companies or family trusts are involved, the nationality of the ultimate owners is what counts. A Selwyn buyer taking in a co-investor should establish that person's nationality before the share split is agreed, because the structure is much harder to correct after closing.
Test substantiality and marginality against this business
Substantiality is proportionate: the amount is weighed against the cost of buying or establishing this particular enterprise, and there is no fixed universal minimum. Marginality asks whether the enterprise has the present or near-future capacity to generate more than a minimal living for the investor and family, or will make a significant economic contribution. A seasonal business raises the question directly, because a summer operation must show what it does across a full year. Projections should be built from the actual operation's records rather than from a template.
Show development and direction from the opening day
The investor must develop and direct the enterprise, which ordinarily means at least fifty per cent ownership or demonstrable operational control. A buyer who intends to install a manager and visit occasionally is describing a passive holding, not a directed enterprise. The evidence is the role itself: who signs, hires, sets prices and decides. It should also be noted that E-2 is a nonimmigrant classification with no direct path to permanent residence, so a household intending to settle permanently is choosing a starting point rather than a destination.
Sources reviewed 2026-09-07. This guide covers a preparation focus; it is not an individual eligibility assessment.