Also referred to as the “golden visa,” the EB-5 classification allows eligible foreign investors willing to put down the required amount of capital to be admitted to the United States with their families (a spouse and unmarried children under 21).
Considering the higher “price tag” associated with this visa, identifying eligible sources of funding is crucial for successful applicants. In this article, you will discover feasible EB-5 funding sources.
What is the EB-5 Immigrant Investor Program? – The Basics
Administered by the United States Citizenship and Immigration Services (USCIS), the EB-5 Program has two primary requirements. First, the applicant must make the necessary investment in a commercial enterprise based in the United States.
Additionally, USCIS requires the applicant’s investment to create or preserve ten permanent full-time jobs for American workers.
If you decide to invest in a business not located within a regional center, only full-time positions created directly through the investment will be counted. For businesses located within a regional center, the investment can directly or indirectly create full-time positions.
Since March 15, 2022, the minimum amount of investment required by USCIS from EB-5 applicants is $1,050,000. If the applicant decides to invest in a Targeted Employment Area (TEA), it is possible to invest $800,000.
In either case, the investment cap is significantly higher than most visas, especially if compared with other categories focused on foreign investors.
How Do I Get EB-5 Funding? – Full Walkthrough
The USCIS defines the term “capital” as “cash and all real, personal, or mixed tangible assets owned and controlled by the immigrant investor.” The amount of investment will be valued at fair-market value in US dollars.
Additionally, USCIS specifies that “the definition of capital does not include:
- Assets acquired, directly or indirectly, by unlawful means (such as criminal activities)
- Capital invested in exchange for a note, bond, convertible debt, obligation, or any other debt arrangement between the immigrant investor and the new commercial enterprise
- Capital invested with a guaranteed rate of return on the amount invested, or
- Capital invested that is subject to any agreement between the immigrant investor and the new commercial enterprise that provides the immigrant investor with a contractual right to repayment, except that the new commercial enterprise may have a buy back option that may be exercised solely at the discretion of the new commercial enterprise”
All investors must show that they legally own the capital invested. Eligible sources of EB-5 funding include earnings from employment, real estate assets, proceeds from business ventures, and control or substantial control in business ventures located in or outside the United States.
Other feasible sources include stocks, securities, assets obtained through inheritance, gifts, divorce, and legal proceedings. The last category includes proceeds from alimony and civil lawsuits. In certain circumstances, USCIS may accept a promissory note as part of the amount of capital invested.
Loans are also permissible funding sources under specific conditions. For example, unsecured loans have not been accepted by USCIS in the last few years.
Do You Want to Obtain an EB-5 Investor Visa? – Immediately Seek Expert Legal Guidance
A well-versed legal advisor in US immigration and business law, Attorney Romy B. Jurado willingly wants to help you succeed. Contact us today by calling (305) 921-0976 or emailing Romy@juradolawfirm.com for an individual consultation.