EB-5 Immigrant Investors: Must Make a Capital Investment

When Must the Investment Actually Be Made?

Although the statute says you must be “in the process of investing,” the USCIS rule is that you must invest the entire capital amount before the EB-5 petition is filed with the USCIS.

Capital is defined by regulations as:

• Cash and its equivalent
• Inventory
• Equipment
• Other tangible property

Making a loan to the commercial enterprise would not count as making a capital investment. However, capital may be a debt that is secured by your assets provided that you are primarily and personally liable for the debt and that you own the assets.

What Can I Use for Capital to Make My Investment?

The capital you invest must have been acquired legally. This rule was created mainly for the purpose of preventing drug smugglers and the other criminals from using illegally obtained money to get a US green card. Therefore, the USCIS wants to know how you acquired the capital. Your petition should document precisely how you obtained the capital, and it should include tax returns showing that have paid all the required taxes. Funds or asset that you received as a gift can be complicated since you would have to document how the donor obtained the funds or assets and show whether required taxes were paid. Money from gifts, trusts, inheritances, and other means can make things very tricky since the money must be traced all the way back in history with full documentation.

How Do I Show That the Investment Would Benefit the US Economy?

To qualify as a capital investment, it must be shown that your investment will “benefit the US economy.” You will probably have already met this requirement just by meeting the other EB-5 requirements for job creation and capital investment. But the statute specifically states that the benefit requirement is distinct from the other requirements and is to be considered independently. Simply making a showing that the business provides the US market with goods or services should be satisfactory to meet this requirement.

If you have questions regarding the EB-5 immigrant investor's visa category, please contact our immigration attorneys or call The Law Firm of Shihab & Associates at the nearest office close to you to consult with an experienced immigration attorney. We have offices located in Columbus Ohio, Cleveland Ohio, Southfield Michigan and Washington, D.C.

Understanding the EB-5 Visa Process: Your Pathway to Permanent Residency

Navigating the complexities of the EB-5 Visa process can be daunting, but our experienced team at The Law Firm of Shihab & Associates is here to guide you every step of the way. With our in-depth knowledge of immigration law and the EB-5 program, we can help you understand the requirements, timelines, and potential challenges you may face.

Here’s what you can expect when working with us:

• Personalized Guidance: We take the time to understand your unique circumstances and investment goals, tailoring our advice to fit your needs.
• Comprehensive Application Support: From preparing your application to gathering necessary documentation, we ensure that every detail is meticulously handled.
• Expertise in Regional Centers: We can connect you with reputable EB-5 regional centers, helping you make informed decisions about your investment opportunities.
• Ongoing Communication: You will receive regular updates on your application status, and we are always available to address your questions or concerns.

Frequently Asked Questions (FAQs) About EB-5 Investment Requirements

1. When Must the Investment Actually Be Made?
Although the statute requires you to be “in the process of investing,” the USCIS rule stipulates that you must invest the entire capital amount before your EB-5 petition is filed. This means that the full investment must be made and documented prior to filing your application for permanent residency.

2. What Can I Use for Capital to Make My Investment?
Capital can be cash or its equivalent, inventory, equipment, or other tangible property. However, capital used for your investment must be legally acquired. The USCIS requires detailed documentation proving the lawful origin of the capital. If your funds come from gifts, trusts, or inheritances, it is essential to provide a clear paper trail tracing the source of the money, including proof that taxes have been paid on the assets. Loans are not eligible unless you are personally liable for the debt and own the collateral.

3. How Do I Show That the Investment Would Benefit the U.S. Economy?
To qualify as a valid investment under the EB-5 program, you must demonstrate that your investment will benefit the U.S. economy. Generally, if your investment creates jobs and meets other EB-5 criteria, it will automatically fulfill this requirement. The statute specifies that showing the business provides goods or services to the U.S. market is sufficient for proving the economic benefit.

4. Can I Invest in Any Business for the EB-5 Program?
While you are free to invest in most commercial enterprises, to qualify for the EB-5 program, your investment must create or preserve at least 10 full-time jobs for U.S. workers. Typically, investments made through Regional Centers are designed to meet this job creation requirement.

5. What Happens If My EB-5 Petition is Denied?
If your EB-5 petition is denied, you will be given the opportunity to address any issues or provide additional documentation. It is important to work closely with an experienced immigration attorney to avoid common pitfalls that may lead to delays or denials.

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Call us at tel:(888) 915-5057 or fill out the form below to get started on your EB-5 journey!