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Questions & Answers

What can be counted towards the $1 million investment requirement?

If the new commercial enterprise requires a physical location for business operation, can the money used to acquire the real property count towards the $1 million requirement? For example, the NCE is a residential elderly care business. Can the money used to purchase the residential homes and subsequent renovation count towards the $1 million requirement?

Answers

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    Yevgeny Samokhleb

    Immigration Attorney
    Answered on

    EB-5 funds may be used toward the purchase of real estate for a project, as long as you can still prove the creation of 10 jobs from your investment.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    As long as the investment is in an active, for-profit business, the money used to purchase real property can be counted as part of the EB-5 investment. The full amount of capital must be at risk and it must be used for job creating purposes. According to the USCIS policy memorandum of May 30, 2013, the immigrant''s investment can be used for purchasing land as long as the new commercial enterprise creates the required number of full-time jobs for U.S. workers. It will be vital in your case to have a comprehensive, credible, and feasible business plan showing the nexus or connection between the investment funds and the job creation.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    The uses of funds can be hard costs or soft costs. Please note that USCIS policy has not been favorable to land acquisition, as it may not count the jobs created by such acquisition toward the 10 direct jobs needed.

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    John J Downey

    Immigration Attorney
    Answered on

    Yes, but the cost of the land may not be used as part of the investment.

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    Ed Beshara

    Immigration Attorney
    Answered on

    The facts you state imply that this is a direct investment into the the NCE which is also the job creating entity. The personal investment funds can be used to purchase real estate, used for renovations, and operations. Please remember there has to be a nexus between the use of the investment funds and the creation of ten new full time jobs for each investor.

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    Oliver Huiyue Qiu

    Immigration Attorney
    Answered on

    It depends. If all of the $1 million investment goes into the purchase of the property and renovation, then remains as equity in the NCE, it may or may not qualify as an "at risk" investment. USCIS could consider it a disguise of investment in real estate, which is a prohibited investment vehicle for EB-5 purposes. It is possible, but careful planning is required.

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    Ian E Scott

    Immigration Attorney
    Answered on

    Any legitimate business expenditure (including the purchase of real property that directly relates to the business) can be counted towards the investment amount for an EB-5 Visa.

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    Wilka Toppins

    Immigration Attorney
    Answered on

    Yes. Capital is defined as "capital means cash, equipment, inventory, other tangible property, cash equivalents and indebtedness secured by assets owned by the alien entrepreneur, provided that the alien entrepreneur is personally and primarily liable and that the assets of the new commercial enterprise upon which the petition is based are not used to secure any of the indebtedness. All capital shall be valued at fair-market value in United States dollars."

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    Dale Schwartz

    Immigration Attorney
    Answered on

    The answer is YES you can count the real estate money.

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    Stephen Berman

    Immigration Attorney
    Answered on

    Yes, money used to purchase property can be included in the amount of an investment.

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