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APPLICATION ANSWERS · E-2 FIELD GUIDE

Can several lawful sources fund one E-2 investment?

Sources checked:

THE DIRECT ANSWER

The actual components can be assessed together, but each relevant source and path needs an understandable record.

Preserve the individual histories

Consolidation does not explain how the money was obtained. Distinguish completed proceeds, borrowing and funds that remain contingent.

E-2 also requires treaty nationality for the investor and enterprise, lawful source and path, capital irrevocably committed and at risk, an amount substantial relative to the cost of buying or establishing the business, and a real operating enterprise that is more than marginal. Funds borrowed against the investor's own assets can form part of a qualifying E-2 investment; amounts secured only by the assets of the United States enterprise generally are not treated as the investor's capital at risk. A lawful software-resale business is not disqualified merely because it resells access; it must still meet the E-2 business, investment, nationality and develop-and-direct requirements. The remaining tests, committed capital, substantiality, a real non-marginal business and lawful funds, are decided by the purchase documents and financial records, not by the percentage. The investment must be substantial in relation to the total cost of the enterprise, so the relevant comparison is between what has been committed and what the business actually costs to establish or acquire, rather than an absolute figure.