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APPLICATION ANSWERS · E-2 FIELD GUIDE

Does losing an exclusive territory automatically defeat E-2?

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THE DIRECT ANSWER

No automatic conclusion follows from that fact alone. Explain the enterprise under the actual nonexclusive terms and assess all applicable requirements.

Update the operating case rather than the label

Describe competition assumptions, supply rights, customer plans and financial projections supported by the new agreement. The business must be real, operating and non-marginal, with substantial at-risk investment and qualifying development and direction. An old forecast based on exclusivity should not be presented as current evidence merely because its numbers look stronger.

A first review should test nationality, ownership, funds, business reality, and the applicant’s operational role separately. The enterprise generally needs qualifying treaty-national ownership, while the applicant must be positioned to develop and direct it. Funds must be committed beyond personal control and exposed to commercial loss; the business must be more than marginal. Hypothetical example: a commercial drone mapping founder has transferred money to a business account but has not signed equipment orders or a lease. Bank balance alone does not settle whether the capital is genuinely committed. The file should identify which contracts are binding, what can be refunded, and how the business will actually operate. If an outside investor controls the decisions or the venture remains a concept, those facts need resolution before an E-2 application is built. There is no direct E-2 path to permanent residence, so avoid presenting temporary business plans as a guaranteed immigration outcome.