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NORTH DUMFRIES · E-2 FIELD GUIDE

Does seller financing count because it appears in the purchase agreement?

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THE DIRECT ANSWER

Not automatically. Examine the actual borrower, security and commitment. The financing label does not establish qualifying E-2 capital.

Read the obligation itself

Identify whether enterprise assets secure the debt and how funds are supplied. Avoid treating a deferred balance as cash already invested simply because it contributes to the headline price.

Other E-2 elements sit beside this one: treaty nationality based on citizenship rather than Canadian residence, at least fifty percent treaty ownership of the enterprise, genuine development and direction by the investor, substantial capital committed and at risk, and a real operating commercial enterprise. If the revised plan can no longer support more than a minimal living for the household, discuss whether a significant economic contribution is demonstrable, or whether the territory itself should change before capital becomes irrevocable. Property the investor leases or that a supplier owns can support daily operations without its market value becoming qualifying capital, although lease or rent payments may be counted within the limits in the official guidance. An established business helps with the real-and-operating and non-marginal questions, but nationality, irrevocable commitment of funds, substantiality and the investor's ability to develop and direct still have to be shown on their own facts.