IN THIS GUIDE · Whether an inn run by a hired manager still counts as directed by the E-2 investor
Start with the E-2 eligibility and application overview
Developing and directing with a manager in place
The consular guidance looks for the investor to be in a position to develop and direct the enterprise, which ownership of at least half, or operational control through a managerial position or other corporate device, ordinarily shows. Retaining the existing manager is common and acceptable when the couple hold the decision-making authority: pricing, staffing, capital spending, supplier contracts and the manager's own employment. Put that authority in the operating agreement and the manager's employment contract, and describe the couple's actual duties honestly. A file in which the manager signs everything and the couple appear only as owners reads as passive investment, which E-2 does not cover.
Trace the sale proceeds and commit them
Proceeds from selling the Harrison Hot Springs bed-and-breakfast are a lawful source, shown by the sale agreement, the closing statement, mortgage discharge and the couple's tax returns. The money then has to be irrevocably committed: placed in escrow under an agreement that releases it to the seller on E-2 approval, or spent on the purchase. Funds still sitting in a Canadian account, however earmarked, are not an investment. Any loan should be on the couple's personal liability and secured by their own assets rather than the inn's.
Substantial for this inn, and more than a living
Substantiality compares the at-risk amount with the total cost of buying and operating the inn; a small property fully funded by the couple presents well. Marginality asks whether the inn can generate more than a minimal living for them, now or within five years, shown by staff beyond the household—the manager, housekeeping and restaurant employees—and a projection built from the seller's actual books. An inn whose entire margin is the owners' wages is marginal even if the couple work hard in it. Build the cost picture from the transaction outward: purchase price, closing costs, equipment, initial inventory, permits, payroll runway, and opening expenses. Then mark which amounts are actually committed, which are merely projected, and which remain available to the investor. The key records are signed contracts, escrow instructions, invoices, wire confirmations, and a cash-flow model tied to the same numbers. An application can become internally inconsistent when its business plan relies on renovation or working-capital figures that the banking trail never shows were committed.
Nationality, family and what E-2 does not give
Both investors must be Canadian citizens for their ownership to count as treaty ownership. The E-2 spouse is employment-authorized incident to status and may work in the inn or elsewhere; children may study until twenty-one but not work. E-2 status is renewable while the inn operates and offers no direct route to permanent residence.
Sources reviewed 2026-09-07. This guide covers a preparation focus; it is not an individual eligibility assessment.