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How is working capital counted in EB-5 investment?

In case of a direct EB-5 investment, how is the total investment amount ascertained by USCIS? Does working capital count towards the $500,000/$1 Million threshold? If so, how is this determined by USCIS? What if one keeps investing personal funds to fund the entire first year of operating expenses?

Answers

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    Roberto Ortiz

    Immigration Attorney
    Answered on

    The most important requirement is that the investment ($500,000.00/$1 million) create 10 full time jobs. You need to be careful that the investment is easily distinguished from any other capital or funds in order to demonstrate that the monies used to create the jobs is coming from the investor and not the business.

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    Lei Jiang

    Immigration Attorney
    Answered on

    If one person keeps putting funds in a project, these funds are part of the working capital.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    Working capital contributions from your personal funds should count toward the required investment. A business plan must reflect how the capital will be invested and expended toward the requisite job creation and when the jobs will be created. Your business plan must comply with certain EB-5 program requirements. Please do not hesitate to contact our office should you need further assistance.

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    Working capital counts towards your EB-5 investment. All funds invested must be personal, however they must then enter the account of the commercial enterprise and be utilized from there. It is not necessary to have spent all your investment funds at the time you file your I-526, you need only show that you are in the process of investing. In practice this means all your funds should be in the account of the new commercial enterprise and a significant amount should have been spent or committed to be spent. Direct investments require the assistance of a seasoned EB-5 practitioner.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    Personal investments that are contributed towards job creation can be counted, provided it is not investment being made from retained earnings of the enterprise that is being invested into.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    The capital must be at risk and it must be spent or committed to be spent on job-creating purposes. Working capital that is necessary to pay the operating expenses of the new commercial enterprise should count toward the investment. The key will be your business plan and the projections contained therein. The business plan must be credible and feasible and show exactly how the capital will be spent and it must show when the employees will be hired. Investment of personal funds to pay the operating expenses should count toward the investment amount.

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    Ed Beshara

    Immigration Attorney
    Answered on

    The EB-5 investment requirement is based upon the investor''s personal investment funds and cannot be derived from retained earnings. A good business plan can show the investor has invested or is in the process of investing to support an I-526 petition which will most likely be approved.

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    Philip H Teplen

    Immigration Attorney
    Answered on

    All working capital contributions are counted to the process of investment toward the $500,000/$1,000,000. You need to show all transfers to document the process, I can gladly help in specific representation to the USCIS.

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    Clem Turner

    Securities Attorney
    Answered on

    Working capital is not typically counted as part of an EB-5 investment. In order to get your EB-5 Visa, you are required to have invested your $500,000 (assuming the Project is in a TEA) in advance of filing your I-526 Petition. You will need a solid paper trail for the source of your EB-5 funds, as well. Thus, utilizing working capital of the business would be difficult to do.

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