Choosing how to fund an E-2 visa business is one of the most important decisions an investor will make, and the source of funds can determine whether a petition succeeds. This guide explains how personal savings, gifts, and loans are treated under the E-2 framework and what documentation will best support an application.

Understanding the E-2 funding rules — the essentials

At the heart of any E-2 application is the requirement that the investment be made in a bona fide enterprise and that the funds be substantial, at risk, and irrevocably committed to the business. The investor must be a national of a qualifying treaty country and must control the investment. While U.S. consulates adjudicate most E-2 applications, immigration adjudicators use the same core principles. For official guidance see the U.S. Department of State’s E-2 page and USCIS information on Treaty Traders and Treaty Investors.

U.S. Department of State — E-2 Investor Visa

USCIS — Treaty Traders and Treaty Investors

Personal savings: the clearest path when documented properly

Using personal savings is often the most straightforward way to fund an E-2 investment. Adjudicators generally prefer funds that the investor personally owns and can document over complex third-party arrangements. The key question is whether the savings were accumulated lawfully and can be traced clearly into the business.

Common acceptable sources of personal savings include salary or bonuses, proceeds from the sale of assets (real estate, stocks), business savings from prior operations, inheritance, and dividends. Whatever the source, the applicant must show an unbroken paper trail from the origin of the funds to the business bank account or to the asset purchase.

Documentation that helps

  • Bank statements showing accumulation and transfers.
  • Employment contracts, pay stubs, and tax returns supporting salary income.
  • Sale documents and closing statements for property or stock sale proceeds.
  • Evidence of funds transferred internationally (wire transfer receipts, SWIFT confirmations).
  • Foreign bank records with certified translations and currency conversion details.

Example: an entrepreneur sells a property in Spain and uses the net proceeds to capitalize a U.S. restaurant. A clear paper trail would include the sale contract, closing statement, foreign bank transfers into a U.S. account, and records showing the use of funds to purchase equipment and leasehold improvements.

Gifts: allowed but closely scrutinized

Gifts can be used to fund an E-2 investment, but immigration officers will scrutinize the transfer to make sure the funds are truly a gift and that the donor had the lawful ability to make the gift. The fundamental concern is whether the investor actually controls and risks those funds in the business.

To be credible as a gift, the transfer should be unconditional and not accompanied by any expectation of repayment or ongoing financial obligation. If the transaction looks like a disguised loan or an expectation of repayment, adjudicators may treat it as debt rather than equity — which can undermine the “at risk” requirement.

Documentation for gifts

  • A signed gift letter from the donor stating that the funds are an unconditional gift with no expectation of repayment.
  • Evidence of the donor’s ability to give (bank statements, tax returns, property sale documents).
  • Proof of transfer (wire receipts, checks, escrow records).
  • Where applicable, evidence of the donor’s relationship to the investor (birth certificates, marriage certificates).
  • If the gift crosses international borders, certified translations and foreign bank records tracing the funds to the donor.

Donors should also be aware of local and U.S. tax implications. For example, in the U.S., large gifts may trigger gift tax filing requirements for the donor. See the IRS guidance on gift taxes for more information.

IRS — Gift Taxes

Loans as an Acceptable Source of E-2 Investment Funds

Loans can serve as an acceptable source of capital for E-2 investment purposes—but only if they meet specific eligibility and risk requirements. The key consideration is whether the funds are personally at risk to the investor and not secured by the E-2 enterprise itself.

To qualify:

  • The loan must be made personally to the E-2 investor, not to the E-2 business entity.

  • The loan may not be secured by the assets of the E-2 enterprise or by the investment itself.

  • The investor must have sole and unconditional responsibility for repayment.

  • The loan proceeds must first be deposited into the investor’s personal bank account, then transferred from that account to the E-2 company’s bank account as a capital contribution.

When properly structured, personal loans demonstrate that the investor’s own assets are committed and at risk, satisfying the “funds at risk” requirement under 9 FAM 402.9-6(B). However, not all loan types qualify equally.

Types of Loans and E-2 Treatment

  1. Commercial Bank Loans
    Acceptable if supported by bona fide documentation and if the investor is personally liable for repayment. Loans secured by personal assets (e.g., a home equity loan) demonstrate genuine risk and are generally acceptable.

  2. Personal Loans from Family or Friends
    Permissible if properly documented with a signed promissory note and evidence of the lender’s financial ability to make the loan. Adjudicators will assess whether the loan is a disguised gift or whether it establishes any dependency inconsistent with E-2 eligibility.

  3. Seller Financing (Seller’s Loans)
    Seller-financed loans generally do not qualify as a valid E-2 investment source. This is because such loans are commercial in nature and typically secured by the very business being purchased. When the acquired enterprise serves as loan collateral, the investor’s personal assets are not at risk, and the investment is not considered irrevocably committed. Therefore, the portion of the purchase price financed through a seller’s loan is normally excluded from the calculation of the investor’s qualifying E-2 investment. Only the portion funded directly by the investor’s personal funds or by a personal loan secured with the investor’s own assets may be counted toward the E-2 investment.

  4. Loans Secured by Investor Assets
    Loans secured by the investor’s personal property—such as real estate, securities, or personal savings—are acceptable, as they place the investor’s assets genuinely at risk. Conversely, loans secured by the business’s assets or the investment itself are not acceptable.

Documentation Requirements

To substantiate a loan as an E-2 investment source, provide:

  • A fully executed loan agreement or promissory note detailing the loan amount, interest rate, repayment terms, and parties involved.

  • Proof of disbursement, such as bank wire or escrow statements.

  • Any collateral or security documentation (e.g., mortgage or UCC filings).

  • Evidence of the lender’s financial capacity to make the loan.

  • Proof of use of funds for business purposes—such as purchase invoices, leases, or payroll.

Example: An investor obtains a $100,000 personal loan from a U.S. bank secured by the investor’s home. The bank disburses funds to the investor’s personal account, which are then transferred to the E-2 company’s account and used to purchase restaurant equipment. Because the investor is personally liable for repayment and has placed personal assets at risk, the loan proceeds qualify as part of the E-2 investment.

Combining sources: personal savings, gifts, and loans together

Most E-2 investments are funded through a combination of personal savings, gifts, and loans. That is acceptable, but each source must be separately documented and the chain of custody of funds must be clear. Mixing sources in a single transfer without explanation is a frequent cause of administrative delay or request for evidence.

Useful practices include maintaining separate supporting files for each source, preparing a source-of-funds narrative that explains how the capital was accumulated and transferred, and ensuring every major deposit has corresponding documentation that ties it to the investment.

Common pitfalls and how to avoid them

  • Insufficient traceability: Sparse or missing documentation for the origin of funds is a leading cause of denials. Keep sale contracts, tax returns, transfer receipts, and lender statements.
  • Funds not irrevocably committed: If funds are still contingent on approval or remain in accounts under conditions, adjudicators may view them as not yet invested. Where possible, transfer funds into a business account or escrow that demonstrates commitment.
  • Loans that remove risk: Excessive collateralization that transfers all commercial risk to a lender can undercut the “at risk” requirement. Balance creditor security with investor exposure.
  • Using funds for personal consumption: Evidence that most of the money was used for investor personal expenses rather than creating or developing the business weakens the application.
  • Inconsistent timelines: Discrepancies between dates on sale documents, transfers, and business expenditures can trigger scrutiny—plan transfers to create a consistent timeline.

Practical tips to strengthen a funding package

  • Prepare a clear source-of-funds memorandum that narrates where the funds came from, how they moved, and how they were invested.
  • Keep contemporaneous records—don’t reconstruct the story long after transfers occur.
  • Use escrow accounts where appropriate to show funds were committed to a purchase or investment.
  • When using loans, ensure loan documents reflect commercially reasonable terms and include evidence of lender capacity.
  • Include a detailed business plan showing the use of funds, projected job creation (if applicable), and milestones—this helps tie capital to bona fide enterprise development.
  • Consult accounting and tax professionals to ensure transfers and sales are documented in a way that meets both immigration and tax reporting obligations.

When to seek legal help

While many applicants assemble successful E-2 packages on their own, complex funding structures—seller financing, cross-border transfers, loans secured by multiple assets, or multi-investor scenarios—warrant early consultation with an experienced E-2 attorney. Legal counsel can help:

  • Assess whether a particular funding structure may raise questions about control or risk.
  • Draft robust gift letters, loan agreements, and source-of-funds statements.
  • Coordinate documentation for consular interviews and prepare responses to potential Requests for Evidence.

Final practical checklist for applicants

  • Can each source of funds be traced from origin to investment? If yes, document it.
  • Are all loan documents authentic and commercially reasonable? If yes, include promissory notes and disbursement evidence.
  • Are gifts supported by donor financial records and a signed gift letter? If yes, include both.
  • Is there a clear business bank account showing funds under the enterprise’s control? If possible, create one early.
  • Is the investment being used to buy assets and build operations rather than to support the investor’s personal expenses? Make the business use explicit.

Deciding how to structure the funding for an E-2 investment affects both the strength of an application and the practical growth of the business. If the investor ensures lawful sourcing, clear documentation, and genuine economic risk, the chances of a smooth adjudication increase substantially. Would it help to review a sample source-of-funds checklist tailored to a specific country of origin or business type?

Please Note: This blog is intended solely for informational purposes and should not be regarded as legal advice. As always, it is advisable to consult with an experienced immigration attorney for personalized guidance based on your specific circumstances.