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What restrictions are there on investing in a family EB-5 project?

My uncle in the United States wants to gift me money for the EB-5 visa. My brother also has a company in the United States. Can I use the money from my uncle to invest in my brother's EB-5 project? Are there restrictions on making an EB-5 investment into a family member's project?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    The business must meet the requirements under the EB-5 program and create at least 10 full-time jobs per investor. There are no restrictions investing in a family-type business enterprise. Your uncle must be able to demonstrate the lawful source of funds he intends to gift you. If the business is not located in a rural area or targeted employment area, the minimum investment threshold is $1 million rather than $500,000.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    As long as the gift is made to you first, and then you use it for an investment, that should be acceptable. The project needs to comply with all USCIS rules and regulations regarding the EB-5 process.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    There are not restrictions on investing in a family project, but it is critical to make sure that the investment results in the requisite number of jobs.

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    Xiaosheng Huang

    Immigration Attorney
    Answered on

    It is shaky to use the gift money from your uncle as the EB-5 investment. But you can use the gift money from your brother. You can invest your EB-5 investment into any company in the United States; however, there are a lot of requirements for the company to be invested in. It is very complex and the company needs to be evaluated.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    Although there is no disbarment to your idea, be on notice that investment in a family business carries with it a presumption of cloudy relationship which will result in higher scrutiny. Simply stated, your application will be judged just like any other and may even draw intense examination. In other words, the USCIS will scrutinize your investment to ensure that it meets all the three major goals of EB-5,(i.e. the source of fund is legal, the investment can/will produce a minimum of 10 jobs as expected just like any arms-length investment, and the investment must be either $500,000 or $1 million depending on the geographical area of whether the investment is in a rural or urban area respectively). All these issues will be taken into account prior to approval of your application. Advisably, get in contact with an EB-5 attorney to ensure proper guidance.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    As long as the money is not secured by your investment in your brother's company it should be OK. There are restrictions on loans though.

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    John J Downey

    Immigration Attorney
    Answered on

    No restrictions per se, but you cannot have family members of the investor counted as employees for the 10 person new employment requirement.

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    Ian E Scott

    Immigration Attorney
    Answered on

    What you have described below should not be an issue as long as the investment is made in the business and used to create 10 full-time jobs. The family relationship may raise significant questions though, so you should seek counsel.

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