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What is the best option to make up for a deficit of funds?

I''m a citizen of Russia. I am looking to purchase a business worth $1,000,000 which would qualify for EB-5 visa. I have $400,000 of my own funds and can prove that it originated from a lawful source of funds. I can borrow the remaining amount of $600,000 from my friend who is American and can prove that the funds were obtained from lawful source of funds. The other options is to borrow the money from my cousin who is a citizen of Ukraine, who has a very good credit history and can take a loan of $600,000 from a bank for me. Which option is better?

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    The option is yours, but the loan must be secured by your personal assets and not by the EB-5 project. You should also be able to verify the value of your assets from an independent source.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    The invested funds must come from a lawful source and that source, including the path and flow of the funds, must be fully documented. It is not possible to choose which option is better unless and until you have made certain which option can be better documented and proven. The investor has the burden of establishing that the funds were lawfully obtained by a preponderance of the evidence ("more likely than not, or probably so"). If you receive a portion of the funds as gift, the source of funds of the donor must be documented also. You should consult with an experienced EB-5 immigration attorney who can advise you on such matters. F

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    Rachel Lew

    Immigration Attorney
    Answered on

    For the EB-5 application, a qualified investor should be a natural person who, either individually or jointly with his/or her spouse, has a minimum net worth of $500,000, or a minimum net worth of $250,000, and, during the last taxable year had, and during the current year expects to have, a minimum gross income of $100,000 (net worth shall be determined exclusive of home, home furnishings and automobiles) . In addition, the investor is defined as an "accredited investor" as defined in Regulation D, that is: 1) Any natural person whose individual net worth or joint net worth with that person''s spouse, at the time of purchase exceeds $1,000,000; 2) Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person''s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level inside current year; If you satisfy these basic requirements and can pledge collateral for the third party loan and repay the loan by the time I-829 petition is filed, the loan can qualify as capital for Eb-5 purposes.

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    Lei Jiang

    Immigration Attorney
    Answered on

    The fund has to be your own. It''s okay to borrow, but the collateral assets should be yours. Just from your limited description, I do not think either one is good. Besides, you have to be an accredited investor.

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    Ebiho Ahonkhai

    Immigration Attorney
    Answered on

    We represent investors who have acquired a portion and, in some cases, all, of their EB-5 qualifying funds from third parties. Because you anticipate that such funds will be contributed by loan, it is important to seek the advice of EB-5 immigration counsel to ensure that the loan terms are adequately documented and that the loan is sufficiently collateralized by you, the investor. Further, you will need to demonstrate that you earned sufficient income to acquire the assets (personal property or real property) used to collateralize such loan (known as a secured loan). If the loan is not sufficiently collateralized, the provision of funds to the investor could be construed as a gift by USCIS.

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    Ying Lu

    Immigration Attorney
    Answered on

    Either way is fine. But if I were you, I may go through the bank loan option if the loan is based on credit only.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    Based on your facts, the main issue at stake here really is a question of choice between two good options. As long as either of the two sources can prove that its fund is from lawful source, feel free to go with either of the two. However, make sure that whichever source of fund you choose you can provide full documentation that the fund comes from a lawful source. In accomplishing the documentation, take the following two factors into consideration: 1) ask and confirm that the source of each of both funds meets the laws of their respective countries, American or Ukrainian respectively, and 2) try to determine which of both countries can allow faster release of fund for your investment. Also, you should consider if both the full documentation and the fund itself can be done in timely manner. This may be necessary if the business you want to invest in happens to require funding as soon as possible. If you need further information on how to apply for the EB-5 visa, please feel to contact our office.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    It doesn''t matter as long as you can show the loan would be secured only by your personal assets and not by the project you are investing in.

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    Edward Litwin

    Immigration Attorney
    Answered on

    Probably neither of the options that you suggest will work. You have to prove that it is YOUR money AT RISK. Unfortunately, USCIS will probably conclude that it is NOT your money at risk but the person''s money who you borrowed from, and will find that you have not "invested" a million dollars. Unless the collateral for your loan is your own property. If you have more questions about this, please call my office or another immigration attorney''s office, to clear this matter up.

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    Anthony Korda

    Immigration Attorney
    Answered on

    Either option will be acceptable to USCIS provided (1) the lender can prove that the source of funds is lawful (2) the loan is secured on assets held by you and (3) you can prove that you acquired the assets lawfully and (4) that the assets are sufficient collateral for the loan.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    As long as you can authenticate (retaining EB-5 counsel like our law firm will help!) each dollar used for the investment, you should be able to prepare an approvable petition. Your investment must be from your personal funds and placed at risk, so we would carefully review the loans you are taking for compliance. If you can review the location of the project and determine that it is in a targeted employment area (or within a group of contiguous census tracts that qualifies), then you would only need to invest $500,000.

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    Margo Chernysheva

    Immigration Attorney
    Answered on

    Loans are allowed but they have to be backed up by your assets and you have to prove that asset value is qualified for the amount of loan you are taking. Especially since your assets maybe in Russia, it maybe easier and better to sell those assets and you can sell them to a person in the U.S. or outside as long as you can document sale/purchase agreement and show money going from their account into yours (in the U.S. or abroad). The other way is to have someone gift you the remaining funds. They have to pay any/all required tax on the gift and so do you. You should consult experienced immigration attorney and tax attorney on how to do this correctly. I will be more than happy to assist in your case. We speak Russian.

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    A Mina Tran

    Immigration Attorney
    Answered on

    Either would be fine, but loan for investment capital requires it to be secured either with real estate or some other hard asset. Please make sure that your hard asset''s value can be verified by an independent source.

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