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What is considered eligible capital for an EB-5 investment?

I am looking to start a U.S. tech company. I am Canadian and currently working in the United States under a TN visa. I have developed a prototype for $700,000, which is the basis of the tech company. Can a prototype be considered as part of the necessary capital investment for the EB-5 visa? If so, how would it be valued? Would it be considered as inventory, physical asset, or gift? Can the licensing agreements or patents associated with that prototype also have a value that can be used for the EB-5 contribution?

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    Answered on

    That can be considered value for an EB-5 investment as long as its valuation can be confirmed. However, your issue will not be the capital''s eligibility, but the job creation. In other words, for your EB-5 to work, you would have to demonstrate that your business can meet the 10 job requirement.

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    Answered on

    For EB-5 purposes, the definition of requisite minimum "capital" invested does not mean only cash. The word "capital" is defined broadly in the regulations to take into account the many different ways in which an individual can make a contribution of financial value to a business. The regulation defines "capital" as follows: "Capital means cash, equipment, inventory, other tangible property, cash equivalents, and indebtedness secured by assets owned by the alien entrepreneur [immigrant investor], provided that the alien entrepreneur [immigrant investor] 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. Assets acquired, directly or indirectly, by unlawful means (such as criminal activities) shall not be considered capital for the purposes of section 203(b)(5) of the Act."

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    Answered on

    Thank you for your EB-5 visa/immigration law question. You must make direct investments with respect to an EB-5 related application. Please contact an attorney to discuss further, as the answer here has many variables.

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