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BEAUMONT · E-2 FIELD GUIDE

Is every prepaid software or hosting charge automatically qualifying E-2 capital?

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THE DIRECT ANSWER

Do not assume every line in a digital-business budget qualifies. Assess the actual lawful funds, commitment, risk and relationship to the enterprise.

Trace what the payment purchased

Read refund, cancellation and delivery terms rather than relying only on the invoice total. E-2 substantiality is relative to the enterprise, with no universal minimum. Separate current official visa fees and private preparation charges from the investment analysis instead of counting every expense toward an assumed fixed threshold.

A dealership with a purchase price, working capital and initial inventory requirement of several hundred thousand dollars would generally expect the buyer to have committed most of that amount, whereas a very large business can qualify with a smaller proportion. Count only what is irrevocable: equipment and computing hardware bought, prepaid rent and deposits that cannot be recovered, software and infrastructure contracts entered, incorporation and professional fees paid, insurance premiums, marketing expenditure and wages committed under employment agreements. Replacement stock, deposits demanded by suppliers who do not yet know the new owner, and the working capital required until receivables begin arriving are three distinct requirements, and a lower purchase price funds none of them by itself.