US E-2 Investor Visa: Source of Funds

The E-2 investor must own and control the invested capital and funds. The investor must also have acquired those funds from lawful sources, such as personal savings, investment income, gifts or inheritances. The funds don't have to come from outside the United States: money earned inside the US can be used for an E-2 investment. Inheriting a business, however, does not qualify you for an E-2 visa.

Certain types of loans can count as E-2 investment funds. In general, loans secured by the investor's personal assets, such as a second mortgage on a home, or unsecured loans, such as a loan made on the investor's personal signature, can be included in the investment.

Loans such as mortgage debt or commercial loans secured by the assets of the E-2 business, however, cannot be counted toward the investment. For example, if the business the applicant is investing in is used as collateral, the proceeds of the resulting loan or mortgage cannot count toward the E-2 investment, even if some personal funds are also used.

In short, only funds that put the investor's personal assets on the line qualify: personal funds, other unencumbered assets, a mortgage secured by the investor's personal property, or a similar personal liability. A reasonable amount of cash held in a business account for routine business expenses can be counted as investment funds. So the investor doesn't have to spend every dollar for the full amount to count toward the total investment.

The funds and assets to be invested must actually be committed to the investment, and that commitment must be real and irrevocable. For example, the purchase of a business that qualifies for E-2 status in every respect can be made conditional on the visa being issued. Despite the condition, this would still be a firm commitment if the assets for the purchase are held in an escrow account that is only released or transferred once the condition is met.

The business must also be up and running or about to start actual operations, not merely at the stage of signing contracts or looking for suitable locations and property. A mere intention to invest, uncommitted funds sitting in a bank account, or even prospective investment agreements with no present commitment do not meet the E-2 requirements. To find out how much you need to invest, see our page on the investment amount; the process is explained on our page about the application process. For an overview of all requirements, visit the main E-2 investor visa page.

In short

• The E-2 investor must own and control the invested capital and have acquired it from lawful sources, such as savings, investment income, gifts or inheritances.
• Loans count if they are secured by your personal assets or made on your signature, but not loans secured by the assets of the E-2 business.
• The commitment must be real and irrevocable, and the business must be operating or about to start; money just sitting in an account is not enough.

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