Skip to content
BROSSARD · E-2 FIELD GUIDE

Can a prepaid service contract establish the investor’s E-2 capital contribution?

Sources checked:

THE DIRECT ANSWER

Not by itself. Explain the legal and commercial character of the customer payment and distinguish it from the investor’s qualifying contribution. It may support evidence of demand and available business cash, but those are different questions from whether the investor has placed substantial capital at risk in the enterprise.

Follow the rights and obligations attached to the money

Identify whether the payer receives services, repayment rights or an ownership interest under the actual documents. Have advisers review any ambiguous arrangement. Do not presume money in the operating account all has the same immigration treatment. The investor’s source and commitment records should remain understandable even when customer deposits are excluded from that calculation.

Rebuild the investment schedule in two columns: amounts already irrevocably committed to the enterprise, and amounts whose treatment depends on the new security package. The plan should show credible revenues, expenses, staffing phases and how the operation can provide more than a minimal living for the investor's family or make another significant economic contribution. What does not count is anything the buyer could still get back: a deposit that the franchisor returns if the visa is refused, money held in the buyer's own account for future expenses, or a loan the buyer is not personally liable for. E-2 requires treaty-country nationality for both the investor and the enterprise; Canada qualifies, and in this scenario the Canadian citizen must own at least 50 percent of the enterprise or otherwise possess operational control.