I understand that EB-5 requires an investment of $1 million or $500k (TEA). Is this a one time investment that must occur before filing, or can this take place as a cumulative investment. And can this investment amount be divvied across multiple companies?
In a direct investment, the $1 million dollars may be invested in installments, but you must prove that you are in the process of investing the required capital. It is possible for the investor to invest in a single holding company that will divide the investment. However, the job creation requirement must be within the commercial enterprise.
The rule is that the investor invest or be in the process of investing the required capital. Installments are therefore permissive IF done correctly and IF fully disclosed to USCIS. Practically however, it is best to fully invest prior to filing the I-526 application. In regards to spreading your investment (hedging your bets, if you will), this may be permissive if done in the context of a direct EB-5 deal. You would still need to tie the investments to a single new commercial enterprise, but these are complicated issues and should be discussed with appropriate counsel.
Short answer is no. If he does it through his own person. In his individual persona can only invest in one project, but it appears that you can do it through a holding company of sorts. An immigrant investor who is not associated with a regional center may deploy capital into a portfolio of businesses, so long as all capital is deployed through a single commercial enterprise and all jobs are created within that commercial enterprise. For example, in an area in which the minimum investment amount is $1,000,000, the investor can satisfy the statute if the commercial enterprise deploys $600,000 toward one business that it wholly owns, and $400,000 toward another business that it wholly owns. See 8 C.F.R. 204.6(e).
The fund must be in U.S. before the filing of I-526 and it must come from you, not from multiple companies.
The full requisite minimum investment amount (either $500K for TEA or $1million) must be invested before the EB-5 Immigrant Investor Petition can be filed.
It must be one "commercial enterprise," but this can be defined as including more than one project if done properly. The funds must be fully invested in the commercial enterprise at the time the I-829 is filed. We usually recommend the $1,000,000 ($500,000 for TEA) be invested prior to I-526 is filed although it does not all need to be spent by the commercial enterprise at that time. It should be committed with no other restriction than possibly an escrow agreement that the money be refunded if the I-526 is not approved.
Investors must have invested in the new commercial enterprise or be in the process of investing in the new commercial enterprise. Therefore, the investment can be made in installments. While splitting the investment across multiple entities may raise issues with the required job creation, portfolios of businesses may be acceptable. We recommend retaining experienced EB5 counsel to assist you with your EB5 immigration goals.
The law does not require a one-time investment; it requires that the investor has invested or is in the process of investing the required amount of capital. In practical terms, however, it makes sense to show USCIS that ALL of the capital has been committed to the NCE. Otherwise, it is extremely likely that the USCIS will issue a request for evidence on this issue. You can invest in multiple businesses, but they must be wholly-owned by the New Commercial Enterprise (NCE). Again, this is acceptable in theory, but it is difficult to demonstrate in reality. There could be situation where an investor or group of investors invest their lawfully-obtained capital into a single NCE, which is a holding company for other businesses. As long as these businesses are wholly-owned by the NCE, then the job creation could be tied sufficiently to the NCE as a result of the investment. Such a structure should qualify for EB-5 consideration.
Although the law says that you can be in the process of investment, from a practical perspective, I would always suggest our clients make a one-time investment before filing. The debate on the use of the promissory note is kind of confusing. The strict interpretation makes the use of the promissory note almost impractical. When you divide the investment among different companies, how you count the number of jobs will be a main issue. Make sure that all the companies will be 100% controlled by the new commercial enterprise. Your scenario is very complicated, I suggest you consult an experienced EB-5 attorney.
While you could invest your funds in installments as long as you complete your investment before I-829 application gets filed, it will depend on the business you invest as to whether they would accept this. Most Regional Centers will not allow this as they need to get the investment funds quickly to invest in the project to go forward. Your EB-5 investment must be in one business enterprise, not several to be aggregated.
It cannot really be divided. You need to show you created 10 jobs. You would need to invest the full amount to get the visa.
The question calls for an analysis by an experienced EB-5 attorney. It is advisable to have the personal investment funds in escrow before the filing of the I-526 petition. The business plan may indicate the period of time of the investment funds will be dispersed to the New Commercial enterprise. In a direct investment structure the personal investment funds may be dispersed amongst various companies at the same time.
The entire investment amount must be invested before you can file the I-526 petition. And, the investment does need to be in one enterprise or business and not spread over multiple businesses.
