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Do I have to invest the total amount at once?

I''m planning to invest in a new business related to sports and entertainment. At the beginning, I would invest around $300,000. I would not create 10 full time jobs right away, but I would give a lot of business to other companies in the area. Then, if the project does well, I would create more jobs and be able to invest more money later. How can I make this business model work for EB-5? What would I need to do?

Answers

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    Shahzad Q Qadri

    RC Creator
    Answered on

    You do need to invest 100 percent to be eligible for the EB-5. It appears that you will be investing in a direct EB-5 project and not a regional center; as such, you cannot rely upon the indirect job creations.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    While the regulations state that the investor must have invested or be in the process of investing, generally investors are placing the entire $500,000 into an escrow account to be released upon a certain set of conditions (like I-526 approval). USCIS may not consider your method to meet the invested capital or at risk requirements.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    Based on these facts, this business model won''t work for EB-5. In order to fulfill EB-5 requirements, your investment must be either at least $500,000 for investment in rural area or $1 million in the urban area. Also, the investment cannot be partial; it must be made upon filing of your Form I-526, Immigrant Petition by Alien Entrepreneur. Further, this investment is at risk. There is no exception for any cautious approach by which you can watch "if the project does well" before investing the remainder of required amount. Moreover, a minimum 10 full-time jobs are supposed to be created within a two-year period. You need to contact an EB-5 attorney who can help put your EB-5 plan together and re-shape it. As of now, going forward, you need to reorganize your ideas so as to allow you to meet the EB-5 goals and secure your immigrant visa.

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    Philip H Teplen

    Immigration Attorney
    Answered on

    The ten jobs need to be created within two years. I suggest that we speak.

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    Farah Abbas

    Immigration Attorney
    Answered on

    It will be very important for you to contact an experienced EB-5 immigration attorney throughout this process. That being said, you do not necessarily have to invest the total amount at one time. However, when filing the I-526 petition, you should show that by that time you have invested the total amount ($1,000,000, or the reduced amount of $500,000 if in a TEA). Please note that if you are not investing in a regional center, then you will have to show direct employment of 10 full-time U.S. workers.

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    Karen-Lee Pollak

    Immigration Attorney
    Answered on

    This will not work. You must create 10 jobs within the statutory two year period, and must show the full amount at risk. Also, the amount is only $500,000 if you are in a rural area or a targeted unemployment area. Perhaps you qualify for an E-2 visa?

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    Ed Beshara

    Immigration Attorney
    Answered on

    The required EB-5 personal investment funds have to be placed in escrow and committed to the project at the time of filing the investors I-526 petition. The attached business plan will state how the funds will be committed and how the required 10 full time jobs will be created over the two year period of conditional permanent residency.

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    Matthew T Galati

    Immigration Attorney
    Answered on

    The statute and the regulations allow an investor to have invested the requisite capital or be in the process of investing. See http://www.uscis.gov/working-united-states/permanent-workers/employment-based-immigration-fifth-preference-eb-5/eb-5-immigrant-investor-process. However, the situation you discuss appears to be quite complicated too complicated to discuss and advise over e-mail and I encourage you to speak with an experienced immigration attorney to ensure that your model is EB-5 compliant.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    You need to invest everything before you submit the I-526 petition. The law allows for an investor to be "in the process of investing," but in practical terms, USCIS will not approve the petition unless and until the full amount actually is committed to the new commercial enterprise. You can put some or all of the funds in escrow pending the approval of the petition, but it depends a lot on your business plan and how credible and feasible it is. Also, USCIS will require meaningful business activity. You should consult with an experienced EB-5 attorney, such as myself, who can advise you and represent you in this matter.

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