Skip to content
VIEW ROYAL · E-2 FIELD GUIDE

Does the original asking price establish the amount of qualifying investment?

Sources checked:

THE DIRECT ANSWER

The actual commitment and qualifying treatment matter, not merely the advertised figure.

Reconcile price and resources

Identify real payments, obligations and the enterprise obtained. There is no universal E-2 minimum, and a higher advertised price cannot cure unsupported operations or missing authority.

A modest price often reflects something the seller is carrying: restoration obligations in the lease, deferred equipment replacement, unpaid vendor balances, or staff entitlements. The purchase price, equipment bought for the business, lease deposits, inventory, insurance and working capital transferred into the operating account are all part of the investment picture. For a lower-priced business, a higher proportion of the price should be invested, and buying the whole sixty percent stake with the applicant's own committed funds is a strong position. Reconcile the investment schedule to money actually transferred, contracts signed, equipment acquired, deposits exposed to loss and any properly structured escrow. Keep independent commercial diligence in the budget; a payment that is substantial for the household does not, by itself, establish the required investment or confirm that the underlying business is sound. Substantiality is proportional to the total cost of acquiring the enterprise, so a business with land and buildings requires a correspondingly large commitment, and only capital genuinely at risk counts toward it. Where the buyers pay the full purchase price for the going concern, including equipment, inventory, vehicle fleet and goodwill, the investment is close to the total cost and comfortably substantial.