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THOROLD · E-2 FIELD GUIDE

Does a cheaper revised deal necessarily make E-2 easier?

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THE DIRECT ANSWER

No. The actual investment, cost, commitment and business capacity need reassessment. A smaller price can also mean the enterprise receives fewer necessary assets.

Compare the businesses being acquired

Do not assume the original revenue and staffing plan still describes a materially reduced acquisition.

Nonmarginality concerns capacity beyond a minimal living for the investor and family or significant economic contribution; projected capacity should generally be realized within five years of normal business activity. The investment must be substantial in proportion to the total cost of acquiring or establishing the business, and irrevocably committed and at risk, which normally means an agreement conditioned on the decision with money held in escrow. Create an eligibility table covering treaty nationality of investor and enterprise, ownership or control, lawful funding, irrevocable commitment, operations, and nonmarginality. Treaty nationality rests on citizenship, which a naturalized Canadian already holds, and the business elements — substantial capital at risk, a real operating enterprise, non-marginality, genuine development and direction — can be built now. The category looks for a real, active commercial enterprise rather than a passive holding, so ownership that produces rent without meaningful business operations generally falls short.