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APPLICATION ANSWERS · E-2 FIELD GUIDE

Does a family gift automatically qualify as E-2 capital?

Sources checked:

THE DIRECT ANSWER

No. Establish the lawful source and path and the actual qualifying investment, as well as the remaining enterprise and applicant requirements. A genuine gift can be part of the facts assessed, but the family relationship does not make every promise or transfer sufficient. Identify any conditions or repayment obligations truthfully.

Explain what the relative has agreed to do

Distinguish money already transferred from an expected contribution and identify who owns it. Preserve the agreement and relevant financial records. Do not assume that calling a payment a gift establishes risk or commitment to the US business; those questions concern the actual investment arrangement.

An investor who owns the company, hires the staff, manages the cash, signs the lease and answers for the losses is developing and directing the enterprise even though a brand agreement dictates signage, systems and prices. Negotiate a diligence window into the term sheet so the subscription can be reviewed before it becomes binding, and set explicit checkpoints inside it: documents received, nationality of ownership confirmed, control rights assessed, funding route agreed. An operating company with staff, premises and lawful unregulated revenue tells a different story from a shell awaiting approval, and the difference shows in records nobody has to characterize: bank statements, payroll runs, supply contracts, a signed lease.