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ESQUIMALT · E-2 FIELD GUIDE

Are payments for transition assistance automatically qualifying investment?

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THE DIRECT ANSWER

Review the actual purpose, commitment and treatment of the payment in the full E-2 analysis.

Distinguish purchase consideration and services

A single invoice label does not decide whether every dollar establishes qualifying capital. Trace lawful funds and identify business resources without assuming a universal minimum resolves the case.

Build a dated review file around the acquisition price, start-up invoices, working-capital schedule, escrow terms, source records, and current fee instructions. Prepare a post-closing cash schedule that separates purchase consideration, inventory, lease deposits, payroll reserve, legal fees, immigration costs and money still under the investor's control. Immigration-preparation costs are generally not the same thing as capital invested in the enterprise, but the treatment of a given expense depends on the facts and should be reviewed rather than assumed either way. The investment must be substantial relative to what establishing this enterprise costs, which in a franchise usually means committing essentially the whole of the fee, build-out, equipment and working capital rather than a portion of it. Ask your advisor for an itemized scope covering eligibility review, document assembly, dependent assistance, and later evidence requests, plus what happens financially if the deposit liability changes the deal before closing. Alongside the investment, budget the consular visa charges for a Canadian applicant, the cost of a properly prepared business plan and the professional fees for structuring, and recognise that a low investment total makes the marginality evidence carry more weight.