What is required for filing an I-526 in an EB-5 direct investment?

With a direct investment, you must show your capital is at risk as of the time of filing of I-526 and the business plan must demonstrate how the EB-5 funds will be spent to create the requisite 10 full-time jobs.

While generally you can show yourself in the process of investing, it is much better to have fully invested the requisite amount at the time you filed the I-526.

You can invest in several increments in the new business for a direct EB-5 case. However, you need to have made the entire EB-5 investment in the direct EB-5 project at the time of filing the I-526 petition. You can transfer your EB-5 investment to the bank account of the new commercial enterprise. For a direct EB-5 case, the I-526 petition would include the business plan, documents concerning the new commercial enterprise, and documents showing that you made the EB-5 investment.

At the time you file a direct EB-5 investor petition on Form I-526, you must have the minimum investment of $500,000 or $1 million. There is no specific account that you need to transfer it to, although at the very least the funds should be transferred to an account in your name prior to filing your I-526 petition. The funds must be available at the time you file your petition. Typically you would have a detailed business plan and the CIS recognizes it may take several months or longer in order to start the implementation of your plan.

At the time of filing I-526 you must demonstrate that the full requisite capital is invested and at risk. This means the funds must be out of your hands and invested in the business. This can include purchase of inventory, lease, business expense, amount in payroll account, business operation account, etc.

In a direct investment, you need to have all of your investment at risk by the time you file the I-526 with immigration. The $500,000 can be in the form of cash, a loan or even equipment used in the business, such as construction equipment. You have to show where the money is invested in the business and how it is invested, i.e. bank accounts, securities, etc. The business plan must also be submitted with your filing. The business plan must show how you plan to create 10 jobs within two years after your I-526 is approved and before you file to remove your conditional permanent residency status. As a direct investor, you can start your company and open a bank account, but you would need to hire a manager to run your company, pending the approval of your I-526 petition. If your money is already invested in the business, it would be prudent to have the business up and running with a manager while the I-526 is pending.

The EB-5 program is seeking to attract individuals from other countries who are willing to put their capital at risk in the United States, with the hope of a return on their investment to help create U.S. jobs. Note that 8 C.F.R. 204.6(j)(2) provides that "the petitioner has invested or is actively in the process of investing the required amount of capital" to be eligible. This means you do not need to have the full investment amount invested when you file the I-526, but the business plan should show how and when the business will accept the additional infusion of investment to operate or grow.

Yes, you can gradually invest the funds as long as funding makes sense with the business plan. You can begin operations a few months after filing. However, you need to identify the location of your business prior to filing.