E-2 source of funds: how to document a lawful, traceable path

Adjudicators want to connect each dollar from a lawful origin to the business account, with no gaps. If the applicant says funds came from savings, the file should show the income that built those savings. If from a property sale, it should show the sale, the proceeds, and the transfer.

Cash without a paper trail is the classic problem. Money that cannot be tied to a documented, lawful source generally cannot be counted toward the investment.

Match each source to its evidence. Pair a narrative explaining the path with the underlying records.

• Employment income / savings — pay records, employment letters, and bank statements showing accumulation over time.
• Sale of property — the deed or sale agreement, closing statement, and proof the proceeds reached the applicant’s account.
• Sale of a business or shares — the purchase agreement, valuation, and transfer of proceeds.
• Gift — a gift letter, the donor’s proof of lawful source, and the transfer record.
• Loan — the loan agreement and collateral; note that loans secured by the enterprise’s own assets do not count as at-risk investor capital.
• Inheritance / dividends — the will or estate documents, or dividend records, plus the transfer trail.

Show the money moving. Wire confirmations, bank statements on both ends, and dated transfers connect the personal funds to the business account and then to the actual spending — equipment, lease deposits, inventory.

Currency conversions and intermediary accounts should be documented too, so a transfer through a third country or an exchange house does not read as an unexplained gap.

Source of funds and "at risk" are linked. It is not enough that the money is lawful and traceable; it must be committed to the enterprise and exposed to loss. Funds parked in an account, or held in escrow with an easy exit, are weaker than capital already spent on the business.

An escrow tied irrevocably to the visa approval can work, but the agreement must show the commitment is real and the funds will be released into the business.

The strongest packages reconcile: the total investment in the business plan equals the sum of the documented transfers, which equals the use-of-funds breakdown. When those three numbers match, the officer’s job is easy. When they drift apart, the file invites questions.