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Investor Visas

E-2 Source of Funds, Loans, and Escrow: What Counts as Your Investment

By Growth FLPC

Attorney Advertising. Kyle Farmer, attorney, is responsible for this content. Farmer Law PC, Austin, Texas. General information, not legal advice.

Short answer: E-2 investment capital has to be yours to control, at risk in the business, from a lawful source you can document, and actually committed to the enterprise. Borrowed money can count only if the loan is secured by your own personal assets or is an unsecured loan on your personal signature. A loan secured by the business’s assets doesn’t count, even if you also pledge some personal assets. If you don’t want to release the money until the visa is decided, an escrow that releases funds to the business only on approval is a recognized way to show the funds are irrevocably committed.

The rule in one paragraph

The E-2 regulation, 8 CFR 214.2(e)(12), defines an investment as placing capital, including funds and other assets, at risk in the commercial sense with the goal of making a profit. The capital can’t come, directly or indirectly, from criminal activity. You must possess and control it. It must be subject to partial or total loss if the business fails. It must be your unsecured personal business capital or capital secured by personal assets. And money that is being invested, or has been invested, must be irrevocably committed to the enterprise. You carry the burden of showing that commitment.

Where the money can come from

The State Department’s guidance for consular officers, 9 FAM 402.9-6(B), lists acceptable sources: capital assets or funds from savings, gifts, inheritance, contest winnings, loans collateralized by your own personal assets, or other legitimate sources. A few points from the same guidance:

  • The source doesn’t have to be outside the United States.
  • It can’t be the result of illicit activity, and the officer may ask for whatever documents are needed to assess where the funds came from.
  • Inheriting a business isn’t an investment. Inherited money you then invest can be a source of funds, but receiving the business itself doesn’t count.
  • You must show possession and control of the funds and assets you invest.

Showing the path of the money

Expect to document the money from its origin to the U.S. business. The State Department’s suggested checklist and the U.S. Embassy London’s E-2 document list point to the same kinds of records:

  • The original source: proof of a gift or inheritance, closing papers and promissory notes from a property or business sale, lease agreements for rental income, loan documents, or bank vouchers for cashed-in investments
  • A personal net worth statement prepared by a certified accountant
  • Bank records showing each transfer, including evidence that the funds moved to the United States
  • If a parent company is part of the picture, its annual report or audited financial statements

The State Department also notes that unverified and unaudited financial statements based only on information the applicant supplies are normally not enough to establish the nature and status of an enterprise. Independent records carry more weight.

Loans: what counts and what doesn’t

The question is who bears the risk. If the business fails, would you lose the money?

Type of financing Counts toward the investment? Source
Your own savings, sale proceeds, gifts, or inheritance Yes, if lawful, documented, and in your control 9 FAM 402.9-6(B)(b)
Loan secured by your personal assets (for example, a second mortgage on your home) Can count 9 FAM 402.9-6(B)(c)(2); 8 CFR 214.2(e)(12)
Unsecured loan on your personal signature Can count 9 FAM 402.9-6(B)(c)(2)
Mortgage or commercial loan secured by the business’s assets No 9 FAM 402.9-6(B)(c)(1)
Loan secured by the business, plus some personal collateral No 9 FAM 402.9-6(B)(c)(1)

The last row surprises people. The State Department’s example says that if the business is used as collateral, the loan proceeds aren’t at risk “even if some personal assets are also used as collateral.”

Escrow: committing the money before the visa decision

Many investors don’t want to pay for a business before they know whether the E-2 will be approved. The regulation allows “any legal mechanism available, such as the placement of invested funds in escrow pending admission in, or approval of, E classification.” It adds that such a mechanism might also extend personal liability protection to the investor if the E application is denied.

The State Department’s guidance says a purchase conditioned on the E-2 visa can still be an irrevocable investment if the assets are held in escrow for release once the condition is met. The investor must have entered into an agreement and committed the funds. The U.S. Embassy London, for example, asks for a binding escrow agreement, signed and dated by all parties, that explicitly says how the funds will be distributed if the visa is issued and what happens if it isn’t.

Escrow doesn’t fix timing on its own. To be “in the process of investing,” you must be close to starting actual business operations, not just signing contracts that could be broken or scouting for locations. Mere intent to invest, uncommitted funds in a bank account, or prospective arrangements with no present commitment won’t do.

Leases, equipment, inventory, and intellectual property

  • Rent and lease payments count only for the amount devoted to that item in any one month, unless rent was paid in advance. The market value of leased equipment and the annual rent don’t count, because rent is usually paid from the business’s earnings.
  • Equipment and inventory you buy can count. Goods or equipment you ship to the U.S. can count too, if they will be used in an operating business and not for personal purposes.
  • Intellectual property can count to the extent its value can reasonably be determined. If there’s no market value for a patent or copyright, the value of current publishing or manufacturing contracts it generates can be used, and failing that, market-value opinions from qualified people in that field.

How this connects to “substantial”

There’s no set dollar minimum for an E-2. Whether an investment is substantial depends on the proportionality test: how much qualifying money you’ve put in compared with the cost of the business. The State Department says the rules on the character of the funds, primarily personal funds or loans based on personal collateral, are meant to weed out risky undertakings and make sure the investor is committed. So money that doesn’t qualify under the rules above doesn’t help with the proportionality test either. For an overview of the E-2 visa itself, see our E-2 treaty investor visa page.

Records to gather

  • A spreadsheet of every dollar invested or committed so far, with dates
  • Bank statements showing the path from the original source to the U.S. business account or escrow
  • Documents for each source (sale closing papers, gift or inheritance records, tax returns, loan agreements and what secures each loan)
  • The purchase agreement or lease, and any draft escrow agreement
  • Receipts and invoices for equipment, inventory, and build-out

FAQ

Can I use a loan for my E-2 investment?
A loan secured by your own personal assets, or an unsecured loan on your personal signature, can count. A loan secured by the business’s assets can’t, even if you also pledge some personal assets.

Can I use gifted or inherited money?
Yes. The State Department lists gifts and inheritance among acceptable sources, as long as the funds are lawful, in your possession and control, and documented. Inheriting a business itself isn’t an investment.

Does the money have to come from outside the U.S.?
No. The State Department’s guidance says the source of the funds need not be outside the United States.

Is money sitting in my bank account enough?
Generally, no. Uncommitted funds in a bank account aren’t an investment. The money must be at risk and, if it isn’t spent yet, irrevocably committed to the business.

How does escrow work for an E-2?
The funds go into escrow and are released to the business only if the E-2 is approved or you’re admitted in E status. The regulation recognizes this as one way to irrevocably commit the funds.

Do I need to show where the money came from?
Yes. Funds can’t come, directly or indirectly, from criminal activity, and consular officers may ask for whatever documents they need to assess the source.

Sources (checked 2026-10-18; re-checked for this version 2026-10-19)

  • 8 CFR 214.2(e)(12)-(15), eCFR (current as of 10/15/2026) (accessed 2026-10-18): https://www.ecfr.gov/current/title-8/section-214.2
  • 9 FAM 402.9-6(B) (investment, source and control of funds, risk, indebtedness, irrevocable commitment, escrow, leases, equipment, intangibles), 402.9-6(C), 402.9-6(D) (substantial; investor’s commitment) (CT:VISA-2190; 02-17-2026) (accessed 2026-10-18): https://fam.state.gov/fam/09FAM/09FAM040209.html
  • 9 FAM 402.9-11(B), suggested document checklist (source of investment; evidence of investment) (accessed 2026-10-18): same URL
  • INA 101(a)(15)(E)(ii), 8 U.S.C. 1101(a)(15)(E)(ii) (LII text, accessed 2026-10-18): https://www.law.cornell.edu/uscode/text/8/1101
  • USCIS, E-2 Treaty Investors (last reviewed/updated 08/20/2026) (accessed 2026-10-18): https://www.uscis.gov/working-in-the-united-states/temporary-workers/e-2-treaty-investors
  • U.S. Embassy London, Treaty Investor Visa (E-2) document list, Section E (investment, escrow agreement, source of funds, funds moved to the U.S.) (accessed 2026-10-18): https://uk.usembassy.gov/niv-treaty-trader-or-treaty-investor-treaty-trader-visa-e-2/

Attorney Advertising. Kyle Farmer is the attorney responsible for this website. Farmer Law PC’s principal office is in Austin, Texas. Past results do not guarantee a similar outcome. Using this site or contacting us does not create an attorney-client relationship. Please don’t send confidential information until we confirm we can represent you. This article is general information, not legal advice.