IN THIS GUIDE · Seller financing and what it does to the at-risk requirement
Start with the E-2 eligibility and application overview
Borrowed money is not automatically excluded, but its security matters
Funds the investor has borrowed can count where the investor is personally liable and the loan is not secured by the assets of the enterprise being purchased. A seller's note secured only by the resort's own assets typically does not represent capital the investor has placed at risk, because the exposure sits with the business rather than the buyer. The same amount borrowed against personal assets, with the investor personally liable, is treated differently. Bev and Curtis should have the security provisions of the note examined before signing, because a clause chosen for commercial convenience can quietly remove a large part of the qualifying investment. Obtain the loan agreement, security registration and personal guarantee before characterizing borrowed proceeds. The decisive point is where the lender can recover, not the label the parties use for the debt.
Irrevocable commitment means the money is beyond recall
Capital that can be returned if the deal does not proceed has not been committed. Deposits held in an escrow that releases only on approval of a visa application are a familiar structure, and an escrow conditioned on the immigration outcome is generally acceptable, whereas money simply sitting in an account under the buyer's control is not. Expenditures already made in reliance on the purchase, such as equipment ordered, staff hired, permits obtained and a lease signed, help demonstrate commitment because they cannot be undone. The paperwork should show funds moving out of the investor's control into the business. List each payment, its recipient and whether it can be recalled. That schedule distinguishes cash held for a future plan from money that has genuinely been put into the enterprise.
Substantiality is proportional, and marginality is separate
There is no fixed dollar threshold. The investment is weighed against the total cost of purchasing an established enterprise or of establishing a new one, and a small business must therefore show a proportionally larger commitment. Marginality is a distinct requirement: the enterprise must have the present or future capacity to generate more than a minimal living for the investor and family, and a projection covering roughly five years is the ordinary way to show future capacity. A seasonal resort should present its seasonality honestly, with annual figures rather than peak-month figures, because an inflated projection is easier to attack than a modest realistic one. Use operating assumptions that can be tested against contracts, prices and staffing. A separate forecast for household income prevents the business plan from disguising a marginal enterprise as a growth business.
Develop and direct means control, not merely majority ownership
The investor must develop and direct the enterprise, which is ordinarily shown by at least fifty percent ownership or by operational control through a managerial position or other device. Where a minority United States partner remains involved after closing, the shareholders' agreement decides the question: veto rights, reserved matters and board composition can leave a nominal majority owner without control. Nationality is examined at the same time, because at least half of the enterprise's ownership must be held by treaty-country nationals who are not United States permanent residents. Both facts turn on the same documents, so the agreement should be reviewed before it is executed. Read the shareholders' agreement as an operating document, not only an ownership document. Board rights and vetoes can determine who directs the company despite the percentages written on the cover page.
Sources reviewed 2026-09-07. This guide covers a preparation focus; it is not an individual eligibility assessment.