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How can I do direct EB-5 with a VC type investment as a gift if its in a TEA?

I have few years of work experience and I would like to use the EB-5 program. My family has been in VC/PE for over 10 years and I wanted to know if I can basically do a VC/PE type investment (gift) as long as it meets the TEA requirements and will create 10 jobs? What would be the criteria to meet for this?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    Properly traced gifted funds can be used for EB-5 investment if the gifted funds originate from a lawful source. Direct EB-5 investment requires creation of a new commercial enterprise that will use EB-5 funds to create at least 10 full-time positions (at least 35 working hours/week). A comprehensive EB-5 business plan will also be required for the petition.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    There are very strict rules for the structure of the EB-5 and in terms of the new commercial enterprise that has to be created. The investment must clearly show how the investment in the NCE creates the jobs in a wholly owned job creating entity. The VC/PE framework does not easily lend itself to direct EB-5, especially since the investment must be in a limited partnership generally and the investor must play at least an active role in management, or if a limited partnership, in policy development.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    You must show funds were lawfully sourced and your funds, not that of the company.

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    Phuong Le

    Immigration Attorney
    Answered on

    Yes, we have done just this type of investment in the past. The most important aspect besides tracing the VC/PE money of your family (essentially, the "seed" money you are using for the investment) is the type of business you intend to create. Note that it cannot be speculative or a blind portfolio. You have to actually identify the business, draw up a budget/funding sources, and lay out a hiring plan with the expected number of employees. If you are prepared to do all that, it is doable.

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    Raymond Lahoud

    Immigration Attorney
    Answered on

    Yes, investment funds can be gifted funds as long as the gift can be sourced back to show lawfully acquired.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    This looks like a "personal investment funds" question. For EB-5, the funds used for the investment must be "personal" to the investor. I would love to discuss how this gift will work, but we would need to go back in time to see if the gift was earned from lawful sources as well.