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How can an investor use E-2 funds for an EB-5 investment?

I am currently an E-2 visa holder. I invested around $1.3 million when applying for the E-2 Treaty program. How can I use these funds for a direct EB-5 investment? I plan to develop the investment business plan to comply with EB-5 standards.

Answers

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    Answered on

    The current investment in E-2 cannot simply be transferred or converted to the EB-5 investment. As an existing business, which apparently seems to be doing well, the only feasible option is to further expand the business. Under such a circumstance, you will have to write a Matter of Ho compliant business plan, invest at least $500,000 or $1 million in the business, create at least 10 new jobs and take other steps in compliance with EB-5 requirements. Advisably, consult an EB-5 attorney before proceeding further on your plan. Thanks.

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    Answered on

    Yes, E-2 funds/investments can be used in applying for EB-5, provided all required elements of EB-5 processing are present (i.e., requisite job creation, lawful source of funds, funds are at-risk, etc.).

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    Answered on

    It is certainly possible to convert from an E-2 to an EB-5 visa. Careful planning is required because the EB-5 visa requirements are significantly different from the E-2 visa requirements. Generally, the investment must be used to create at least 10 full-time permanent jobs (at least 35 hours a week) and you cannot use retained earnings in the E-2 business as the EB-5 funds unless retained earnings have been distributed to you and reinvested after payment of tax on distributions. It is very important that you engage the services of an experienced EB-5 immigration attorney to prepare your case.

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    Answered on

    The entire investment you have made towards the E-2 company can be counted towards your EB-5 case, especially if you can show that this investment resulted in job creation.

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    Answered on

    You need to work with a corporate and securities lawyer with EB-5 experience to make the business side documents EB-5-ready. Then, you should work with an EB-5 immigration lawyer to prepare your I-526 Petition packet. Although you would have shown the legal source of the funds at the E-2 stage, the SOF tracking for EB-5 is much more detailed. Thus, you need an experienced EB-5 lawyer to help you succeed.

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    Answered on

    This is doable provided you can comply with all the EB-5 requirements. It does not matter that the funds were invested in the past if you can show a lawful source of funds, money put into the projects, 10 jobs created, etc.

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    Answered on

    All that money can be used for an EB-5 investment if it was placed at-risk and you have appropriate documentation showing such. You will also have to show the source of funds (where you got the money from), which will be a much more extensive exercise than the SOF work you did for the E2 application.

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    Answered on

    An E2 investment can be converted into an EB5 petition if the initial funds with which you invested when you filed the E2 application can be lawfully sourced. EB5 Source and Path of Funds rules are stricter than those for E2, but it is worth assessing your initial investment for EB5 eligibility. You may not need to have a business plan if your business has already reached a certain level of maturity. Either way, you will need to retain an attorney to assess the case.

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    Answered on

    It may be possible that your E-2 investment may also qualify under the EB-5 program if it otherwise meets the requirements for the EB-5 investor program. You would have to show that your original E-2 investment not only met the minimum $1 million investment, but that it also created the 10+ jobs for U.S. workers, as well.

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