Examine the actual security. Debt secured by enterprise assets is not qualifying E-2 investment capital; personally secured or unsecured funds can require a different assessment.
Follow each funding obligation
Record the borrower, creditor, collateral and use of proceeds. Do not relabel enterprise-secured borrowing as personal funds simply because the investor signed the agreement.
Budget the acquisition or start-up cost, equipment, inventory, leasehold, payroll, professional charges, insurance, operating cushion, personal living reserves, and government fees separately. For a share purchase the relevant cost is the price for the business as a whole, established by the seller's financial statements, the equipment schedule and the negotiated agreement, plus any working capital the buyer must add. Where money sits in escrow or under a contract with revocation or refund conditions, the effect on committed, at-risk capital depends on the specific wording and needs legal review; refundable deposits are not automatically qualifying or automatically excluded. Substantiality is measured against the total cost of purchasing the business, and the investor's committed funds must be a large enough share of that cost to show serious commitment and a realistic chance of running it successfully.