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How can a gift to a U.S. business qualify as an EB-5 investment?

I am a U.S. citizen and my non-U.S. citizen friend wants to pursue an EB-5 visa by investing in my business. I am in the process of forming that business with plans of becoming a franchisee. The franchisor is not keen on this particular way of financing our initial investment and wants owner equity or traditional lending arrangements. My non-U.S. citizen friend would be willing to "gift" this money to my business. Will this type of investment be sufficient for EB-5 visa purposes? Can the investment in a U.S. business be a gift to the business?

Answers

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    Answered on

    The gift of funds must come from a legal source of funds and be given to an EB-5 investor, who will in turn make an investment of funds into a business (new commercial enterprise) which must create at least 10 full-time jobs in order for an EB-5 investor to qualify under the EB-5 program.

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    Answered on

    It must actually be an investment put at risk of loss and allowing for the opportunity for gain. Investment documentation will be required as well. A gift as you describe does not sound like it would be accepted.

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    Answered on

    A gift can qualify - but the gift must be to the primary applicant and the source of the gifted funds must be shown to be lawful.

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    Answered on

    The gift must be to the investor who can invest in a business that must create the jobs.

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    Answered on

    I am not sure I understand the details, but the investment would have to be in a commercial enterprise if the non-U.S. citizen wants a green card from the investment.

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