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MAPLE HILLS · E-2 FIELD GUIDE

Should every projected unit budget be counted as invested capital?

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THE DIRECT ANSWER

No. The qualifying treatment depends on real commitment, risk and use, not simply a total of future forecasts.

Separate expansion estimates from current funds

Identify actual payments and obligations. There is no fixed E-2 dollar amount that makes unsupported future spending equivalent to invested capital.

Write down the purchase or startup budget item by item, covering premises, equipment, inventory, licences, initial payroll and working capital, and mark which items are already paid, contracted, or merely intended. Corporate formation or acquisition costs, legal review of the governing documents, a business plan, accounting work on the source of funds, and the working capital the enterprise needs. The purchase price held in escrow on visa-conditioned terms, funds already spent on equipment or inventory for the business, and working capital transferred to the business account and committed to operations all count. In a franchise the total cost includes the initial fee, the build-out, equipment, opening inventory and working capital, and those figures are usually available from the franchisor's disclosure material. A lower price is not automatically disqualifying, but money refundable at the investor’s discretion is not counted; a visa-contingent purchase can still qualify when the funds are held in escrow for release upon visa issuance. The investment must be substantial in relation to the total cost of purchasing or establishing this particular enterprise, so a modest business requires a proportionally high commitment rather than a large absolute sum.