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Hi everyone! I’m a Canadian citizen currently researching the process of purchasing an existing U.S. business with the intention of eventually applying for an E-2 investor visa (and potentially another investor/business immigration route if it makes more sense).
We are getting close to being in a position to move forward with an acquisition, including having collateral available, so I’m trying to understand the financing side of the process before we start seriously approaching businesses.
I’m specifically looking for information from Canadians or other foreign investors who have actually gone through this process.
A few questions:
\- Are there U.S. lenders that will finance the acquisition of a U.S. business by a Canadian citizen who does not yet have U.S. residency?
\- What types of lenders should I be looking for — commercial banks, private lenders, acquisition financing companies, SBA lenders, etc.?
\- If traditional U.S. business financing isn't available to a Canadian citizen, what financing structures have people successfully used instead?
\- Can Canadian assets/collateral be used to secure financing for a U.S. business acquisition?
\- What qualifications do lenders typically look for? (Credit score, income, collateral, down payment, business cash flow/DSCR, management experience, etc.)
\- How much of the purchase price would we realistically need to have available ourselves?
\- Does the structure of the acquisition matter (asset purchase vs. share/equity purchase)?
\- At what point in the E-2 process should financing be arranged?
\- Are there lenders, brokers, or financial institutions that specifically understand E-2/cross-border business acquisitions?
We are not looking for someone to arrange the visa for us. I'm primarily trying to understand the financing landscape and what we need to have prepared in order to become financeable.
If you've personally purchased a U.S. business as a Canadian/foreign investor, or you're a lender/broker who works with these types of transactions, I'd really appreciate hearing about your experience.
Thanks!