Questions and Answers > EB-5 Investments

How is it possible to finance an EB-5 investment?

I am looking to buy a business in the U.S. The owner wants to sell it for $550,000 with real estate and agreed to finance with $150,000 cash down, and the rest within 10 years. Does this sound like something that is eligible for EB-5 or does the investment have to be made all at once?

Answers

• Reza Rahbaran

  Immigration Attorney

  Answered on March 5, 2014

  EB-5 regulations do not require the funds to be invested all at once. However, the investment of $400,000 within 10 years may deem your business purchase not EB-5 eligible.

• Shahzad Q Qadri

  RC Creator

  Answered on January 31, 2014

  This probably will not qualify because the investment is secured by the business property and the length of time of the loan.

• A Olusanjo Omoniyi

  Immigration Attorney

  Answered on December 31, 2013

  This investment idea is not eligible for EB-5 investment program. Generally, while the EB-5 investment needs not be made all at once, it must be done within 2 years rather than the 10 years in this proposal. Last but not the least; it is advisable that you talk to an EB-5 immigration attorney before you proceed further on your negotiations on this deal.

• Lynne Feldman

  Immigration Attorney

  Answered on December 30, 2013

  The financing cannot be secured by the business and $500,000 will not work for EB-5 unless the business is an a TEA (Targeted Employment Area as designated by the state (generally high unemployment or rural area)).

• Jinhee Wilde

  Immigration Attorney

  Answered on December 30, 2013

  The investment has to be made within 2 years in order to qualify for EB-5 as the rule requires that you have made the full investment or are actively in process of making the investment. However, if you are taking out a loan secured by you, i.e., that you are obligated to pay, that may be sufficient depending on the terms of the loan, which needs to be reviewed carefully. My chief concern in your situation is whether the business you are purchasing is located in a Targeted Area of Employment to qualify for $500,000 investment exception rather than $ 1 million investment, which is the rule. Also, you should carefully document your income and assets so that you could prove that the investment funds were obtained in legal means.

• Fredrick W Voigtmann

  Immigration Attorney

  Answered on December 30, 2013

  This will not work for EB-5. You need to invest all at once or be in the process of making a qualifying investment that does not include any debt secured by the assets of the new commercial enterprise itself. In practical terms, you have to invest all at once.

• Salvatore Picataggio

  Immigration Attorney

  Answered on December 30, 2013

  The law and policies state that you must have invested or be in the process of investing to be eligible for the EB-5 program, but 10 years may be too long of a timeline to be considered "in the process." Retaining experienced EB-5 counsel, like our law firm, will help you create an approvable immigration plan through the EB-5 program.

• Ed Beshara

  Immigration Attorney

  Answered on December 30, 2013

  The full investment of $500,000 has to be either in escrow or already committed to the job creating entity and/or new commercial enterprise at the time of filing the I-526 petition.

• Kripa Upadhyay

  Immigration Attorney

  Answered on December 30, 2013

  The EB-5 program requires that the entire investment (either $500,000 if in TEA area or $1 million, if not) be invested within 2 years; however, USCIS prefers to see that the amount has been fully invested at the time of the initial application with USCIS. The above scenario which envisions an investment spread out over a 10 year period would most likely not qualify for the EB-5 program.

• Stephen Berman

  Immigration Attorney

  Answered on December 30, 2013

  All at once. This arrangement you suggest is a way to avoid ever investing. It will not work.