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APPLICATION ANSWERS · E-2 FIELD GUIDE

Does the business purchase have to close before the E-2 review happens?

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THE DIRECT ANSWER

Have the proposed terms reviewed before making that sequencing decision. Certain qualifying arrangements involve an investment in process or escrow, so it is not accurate to assume every purchase must be fully closed first.

Coordinate the transaction with the applicable procedure

Identify who has the authority to revise closing and release conditions, then confirm the appropriate consular or status process for this applicant specifically. Keep the target opening date separate from an expected government decision, and have any change to ownership, funding, or operations reassessed. Do not make the transaction irreversible purely to fit a generic timeline someone else used.

Coordinate immigration review with the purchase agreement before choosing release conditions. An E-2 investor may be in the process of investing; funds nevertheless must be at risk and irrevocably committed, sometimes through properly structured contingent escrow. A new enterprise need not operate already, provided it will be real and active, while ownership, treaty nationality, direction, substantiality, and nonmarginality remain required. Identify who can amend the contract, what event releases money, and which procedure applies. The common sequencing error is closing unconditionally, only to discover control or nationality terms defeat the case.

Hypothetical example: a Windsor specialty baker negotiates to buy an American wholesale bakery whose seller wants immediate payment, although equipment inspections remain incomplete. She has counsel align escrow release with the applicable review, documents Canadian citizenship and majority ownership, and schedules supplier commitments without claiming the ovens already produce. When the seller proposes broad operating vetoes, she pauses the timetable so operational control can be reassessed rather than allowing a commercial closing date to determine eligibility.