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FOR ENTREPRENEURS · CHAMPLAINChamplain

Your ambition.Your enterprise.

A hypothetical Trois-Rivières investor is buying one activity from a larger U.S. seller. The transaction may exclude staff, records or rights used by the seller’s other activities. Explain what becomes an independently operable enterprise rather than assuming the seller’s consolidated results describe the business being acquired. The decision is not merely what is purchased; it is whether the buyer can show an operating enterprise, a qualifying investment and a workable transition on the records available. For E-2, the investment must be irrevocably committed; it must also remain exposed to commercial risk.

Talk about E-2
PurposeDevelop and direct a business
InvestmentSubstantial and at risk
Fixed minimumNo universal dollar threshold
01

Define the acquired operation

Read included and excluded assets alongside service, employment and transition arrangements. Identify who will perform work after closing and which rights the investor can actually use. A seller’s total revenue is not automatically the acquired activity’s revenue. Explain allocations and uncertainty without inventing a precise standalone history that the records do not support. Prepare an opening-day schedule that identifies each asset, contract and person needed to deliver the service. It tests whether an excluded item is a manageable transition issue or a missing part of the enterprise.

02

Establish the E-2 conditions for the actual enterprise

The applicant and enterprise must have qualifying treaty nationality; the applicant must develop and direct the business. Investment must be substantial, committed and at risk in a real operating enterprise. Nonmarginality considers capacity for more than a minimal living for the investor and family or a significant economic contribution under the applicable standard. No universal purchase minimum establishes these conditions. A first review should trace nationality, control, source and commitment separately. The resulting file should show why funds are genuinely exposed to the enterprise and why the investor will direct it, rather than simply listing a purchase price.

03

Make the transition costs visible

Identify temporary seller services, replacement systems and obligations that arise after closing. Assess the investment treatment of payments from their actual terms, including any escrow or return rights. A forecast should explain when the buyer assumes each function, not simply reproduce the seller’s business plan. Keep available funds distinct from capital committed to the proposed enterprise. Use a transition calendar to test when seller support ends and who assumes each essential function. This is often more decision-useful than a broad revenue forecast because it identifies the operational dependency that could derail the plan.

04

Document treaty ownership and lawful funding

The enterprise generally must be at least 50% owned by nationals of the relevant treaty country. Trace ownership through the actual entities and establish the lawful source and path of the investment funds. The applicant’s passport and a transfer receipt alone may leave enterprise nationality or funding history unexplained. Ownership tracing should identify each intervening entity, its nationality and the record supporting control. A bank transfer may establish movement of money without resolving who owns or controls the enterprise after closing.

SOURCES FOR THIS GUIDE

Sources reviewed 2026-09-07. This guide covers a preparation focus; it is not an individual eligibility assessment.

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