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What are the age and financial requirements for EB-5 investors?

What are the basic requirements for a person who wants to make an EB-5 investment and receive a U.S. visa? In particular, is there an age limit and a required financial capacity?

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    John J Downey

    Immigration Attorney
    Answered on

    There are no statutory age requirements; however, if a minor is the investor there will be constraints on their ability to contract. This would be on a state by state basis depending on where the investment is located. Financially, you should be an "accredited investor" under SEC rules.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    While the EB-5 law and regulations do not contain any such requirements, basic contract law and other legal principles require that the investor be at least 18 years of age or legally able to sign binding legal contracts/agreements. In most cases, this means the investor should be at least 18 years of age. As for financial capacity, the EB-5 law does not have any specific requirements, just that the invested capital was lawfully obtained. The SEC allows certain exemptions for issuers who have not registered their securities offerings with the SEC. One of those exemptions requires that the issuer offer securities only to accredited investors. n accredited investor is one who has at least $1 million in personal assets (together with his/her spouse) or has at least $200,000 in annual income in the preceding two years (or $300,000 combined with the spouse).

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    Julia Roussinova

    Immigration Attorney
    Answered on

    The legal age to execute a contract under state law in most U.S. states is 18. It is possible to have a child as young as 16 to be legally eligible to sign a contract. There are no other age limitations as long as a person is legally competent to sign a contract under applicable state law. A prospective EB-5 investor has to possess at least $500,000 (under current law) for EB-5 investment in a regional center project or directly into a new commercial enterprise either in a Targeted Employment Area or rural area. Otherwise, the minimum investment amount is $1 million (under current law). Investment funds may come from different lawful source of funds, including gifts, inheritance, salary or wages, distributions or dividends from a business, sale of real or other property, loans secured by collateral personally owned by an investor, etc.

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    Marisa Casablanca

    Immigration Attorney
    Answered on

    An EB-5 investor must prove that they qualify as an investor. They must have a net worth of $1 million dollars. At this point there is no age requirement.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    The investor should be of legal age to execute a contract in the state where the investment is made.

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    Kyle Barella

    Immigration Attorney
    Answered on

    An EB5 investor should be 18 years old and have a minimum of $500,000 to invest. There is no need to prove a source of funds greater than $500,000. The investor can even be gifted the money from a parent regardless of the investor's net worth. Keep in mind that EB-5 regional center projects may have their own net worth requirements.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    There is no age requirement or limit to participate in EB-5. Also, generally the financial requirement for an EB-5 petition is that an investor must invest a minimum of $500,000 if the investment is in a Targeted Employment Area (TEA) or rural area, and $1 million if the investment is in an urban area - with the fact that you will need to add management and attorney fees which may be as much as $50,000-70,000. Advisably, consult an EB-5 attorney before proceeding on your EB-5 plan.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    The new bill H.R. 5992 sets 18 as the minimum age. However, many regional centers are accepting minors under 18. 18 is the current legal age for most states to ensure a contract is not voidable, but many have made strong arguments under UTMA and foreign choice of law provisions whereby the subscription agreement is binding for children as young as 16.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    It comes down to the ability to enter into contracts, which in most U.S. states, is 18 years of age. We would recommend being 18 or older as an investor.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    This is something to discuss with your investment immigration attorney. Generally, if you are residing in the United States, you must be an Accredited Investor under SEC Regulation D with an income of $200,000 annually for an individual or $300,000 for a couple, or assets in excess of $1 million, not including your personal residence. You must also demonstrate that this is a suitable investment for your current financial situation. If you are a foreign national not residing in the United States and the entire transaction takes place outside of the United States, there are no specific financial requirements beyond the question of suitability. Again do discuss this with your attorney or your broker dealer before making any investment decision.

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