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Can EB-5 be sponsored by a family member?

1) I would like to know if my dad can sponsor me for the EB-5, as in put my name as main investor of the EB-5 project but when we are able to exit the EB-5 project, he gets back the monetary returns. 2) What actually happens if unfortunately the main investor passes on. What will happen to the principle investment (if and when we can get it back after getting our conditions removed and exiting from the EB-5 project)? Will the $500,000 (or whatever amount is left) be given to the main investor''s spouse, the sponsor or can the main investor will it to whomever he wants to? Does this investment count as an asset or equity?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    It may be best to structure the EB-5 investment as a gift from your father to you. Your father must be able to provide documentation as to the lawful source of these funds. You can invest in equity type of investment or a loan based investment. Business documentation with an investment project will govern the exist strategy and how you receive your investment capital back. If an investor were to die before the return of capital, his or her heirs are entitled to receive the funds either by way of Will or via intestate succession statute (if no Will was executed).

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    Mahsa Aliaskari

    Immigration Attorney
    Answered on

    If the goal is for only you to obtain legal permanent residence, then you would need to invest your own personal funds. The funds can come in the form of a gift to you, but someone else cannot make the investment on your behalf. The specifics of what happens to the funds will be dictated by the terms of the deal and that would be a separate question from the immigration implications.

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    Your father can gift you the investment funds, and you are then free to choose to invest the funds into an EB-5 project. His source of funds would be used for the petition. In case of a death, the will determines the beneficiary or in absence of a will intestacy rules will determine the flow of the funds to the next of kin. Your investment is both an asset and equity.

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    Philip H Teplen

    Immigration Attorney
    Answered on

    You will be the main investor and the money is treated as a gift. What you elect to do privately with your father is a separate matter.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    You can receive a gift from your father for the funds to be invested by you. Your father must provide proof that he lawfully obtained that capital and he must legally give the money to you for you to invest it. The arrangement you make with the EB-5 regional center or project can be negotiated, but probably it is best for you to receive any returns from the investment. Then you can pay your father back. If the main investor passes away, the case could be affected. If it happens before the I-526 is approved, then a refilling with a new petitioner probably would be required. If it happens after the green card is issued and before filing of the I-829 petition to remove the condition, a spouse may be able to take over the investment and still get the I-829 approved. It depends upon the situation. The investment is an equity investment, whether the use of the funds is to purchase equity in the job creating enterprise or to loan funds to the job creating enterprise.

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    Clem Turner

    Securities Attorney
    Answered on

    Your dad can gift you the $500,000 necessary for the investment, so long as he has a clean source of funds. However, you will be the holder of record of the Interest in the EB5 investment. You may be able to transfer the economic benefits to him after the 829 is adjudicated, but that will depend on the Partnership Agreement and the willingness of the General Partner. If the main investor passes, the Interest becomes property of his estate and it can be willed to a beneficiary or flow to the next of kin if there is no will. The EB5 Interest is both an asset and a security. Upon the death of an asset holder, it has the fair market value of its economic benefit.

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    Lei Jiang

    Immigration Attorney
    Answered on

    You have to be the investor if you want to get EB5 visa. If the main investor passes away, normally his family members can get the investment.

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    Margo Chernysheva

    Immigration Attorney
    Answered on

    The way to use family money is to have your father gift you the money. At that point the money is yours to use in whatever way you would like to use it. As to your second question: since the money is yours, you will decide what to do with it.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    Your dad can gift you the money for the investment. Upon you exiting you can choose to do what you want with the money, including giving it to your father. If the primary investor passes on, but was married, his spouse will be the owner of the investment, more likely than not will receive the disbursement.

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    Mona Shah

    Immigration Attorney
    Answered on

    Your father can be the main investor. You would be included as a dependent IF you are under 21.

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    Robert West

    Immigration Attorney
    Answered on

    This is possible but can be complicated depending on the country you are from. Personally, I have done a case like this before.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    I have had father and son be co-investor and then father assigning all the rights of the investment to the son by an executed power of attorney. Also, the investment is part of your assets as in any investment and could be assigned. However, since you are supposed to have the investment active until I-829 removal of condition, you need to hold it until then.

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    Joseph Best

    Immigration Attorney
    Answered on

    1. No - The investor is the petitioner. That is a clear legal requirement. If your father wants to provide you with the funds to invest then this can happen, but that also creates some additional issues that we''d have to deal with. The same person investing is the same person who petitions for the EB5 immigrant visa. 2. Folks need to be really clear about this. This is an investment.

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    Roberto Ortiz

    Immigration Attorney
    Answered on

    The best alternative will be for your father to gift you the money. Your father cannot act as a sponsor so that he can then receive the monies in return after you have received your Permanent Residency.

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    Ed Beshara

    Immigration Attorney
    Answered on

    The Investor can receive a gift from the parent and use these gifted funds as the personal investment funds required for the EB5 project. If the investor sells their interest in the New Commercial Enterprise at fair market value and receives an amount, then it is up to the investor who subsequently receives this amount. If the investor dies then the investor''s will directs the entitled proceeds to the surviving spouse or relative. The initial investment can be in an equity or loan model.

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    Ali Farahmand

    Immigration Attorney
    Answered on

    The answer to your question is YES. You can be sponsored by your father or any other family member. The way the case is processed is by having the family member gift you the investment amount and then the case is filed under your name and you will get the benefit of the legal residence status. Once the case is processed and finished, then you would receive the funds back from the Regional Center and you can make arrangements with your family member for the return of the funds. If during this process the family member dies, then this matter should be resolved through his will. He can will this amount to anyone he likes but remember that it has been categorized as a gift without any conditions in order to qualify you for the EB-5 case.

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    Jeffrey E Campion

    Immigration Attorney
    Answered on

    Your father can give you a gift and then you can invest the money. Re the return of the money to him, that would be an issue of what you decided to do with the money. Your second question is an estate and trust issue, not an immigration issue so it would be governed by your will and trust. It is an asset you have and you are an equity investor in the partnership or entity.

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