IN THIS GUIDE · Assess the operating business, the investor and the commitment as separate questions
Explain nationality and decision rights
Identify the investor's treaty nationality and the enterprise's ownership structure. Show the agreements establishing the applicant's ability to develop and direct the business, including any retained rights of a seller, co-owner or lender. Canadian permanent residence does not establish Canadian nationality. A share percentage is relevant but must be read together with the actual control arrangements it comes with. The applicant must hold the relevant treaty nationality, and generally at least 50% of the enterprise must be owned by nationals of that treaty country. Development and direction may be established through 50% ownership or operational control through a managerial position or other corporate device.
Trace the source and commitment of funds
Create a dated path from the lawful source to the investment, identifying transfers, currency conversions and agreements along the way. Personal unsecured loans may qualify; borrowing secured by the enterprise's own assets is treated differently. Hypothetical example: an Ottawa purchaser has a loan secured against several personal and business assets together. Review the complete security documents rather than relying on the word personal appearing in a summary term sheet. Borrowing secured by the enterprise’s assets is not qualifying investment on that basis. Future nonmarginal capacity should generally be realizable within five years of normal business activity. Personal unsecured borrowing or borrowing secured by the investor’s own non-enterprise assets may qualify; enterprise-asset security excludes the debt even when personal collateral also secures it.
Read escrow and business costs together
The FAM recognizes qualifying investment-in-process and escrow arrangements, including certain visa-contingent purchases. Identify the release, refund and cancellation conditions before any payment is made. Substantiality is assessed relative to the cost of the specific business; there is no universal E-2 minimum dollar figure that replaces that analysis. Distinguish money being discussed, money committed under signed terms, and amounts already spent. Qualifying funds must be committed and placed at risk, not simply held available for a possible purchase.
Show a real enterprise beyond the applicant's household
The business must satisfy the non-marginality requirement. Explain its operating activity, resources and supported financial expectations rather than relying on unexplained growth projections. Distinguish historical results from a forecast, especially after a recent change of ownership. Canadian citizens generally require an E visa for this route, so confirm the applicable consular instructions rather than assuming another category's port-of-entry process applies. The applicant must intend to depart when E status ends. Nonmarginality requires capacity beyond minimal living for the investor and family or the applicable significant economic contribution; support future capacity rather than merely projecting revenue.
Sources reviewed 2026-09-07. This guide covers a preparation focus; it is not an individual eligibility assessment.