Do not treat anticipated revenue as completed investment capital.
Separate forecasts from commitments
Trace actual qualifying funds and their use, and identify financing security and charges. A strong sales forecast does not establish every investment requirement. Hypothetical example: a Canadian owner of a mobile dog-grooming company is purchasing a U.S.
salon, two vans, insurance, initial inventory, and a leasehold renovation. Make a use-of-funds table that separates the acquisition price, operating equipment, inventory, deposits, payroll reserve, professional fees, government charges, and personal living money. The decision is whether the qualifying funds are proportionate to the real cost of buying or establishing this specific business, not whether an arbitrary dollar figure has been reached.
There is no universal E-2 minimum. Trace each committed amount to a binding obligation or expenditure and identify whether it can be recovered if the application is refused. A contingent escrow arrangement may be useful, but its terms must demonstrate the necessary exposure to loss.
Do not add a projected first-year revenue stream to the investment total. For borrowed money, identify the security; debt secured by enterprise assets is treated differently from debt secured by the investor’s personal assets. The first financial review should also test whether the enterprise’s plan supports nonmarginality through credible staffing, revenue, and operating assumptions.
Keep the budget internally consistent with leases, purchase agreements, invoices, and the business plan. A mistake occurs when personal relocation expenses or consultant invoices are presented as capital in the business. Confirm official fees separately and update them close to filing.
The amount matters only in the context of the actual enterprise and its risk.