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How can EB-5 investors allocate their capital in a direct investment?

If I invest in a trucking company, must the funds be used to purchase physical assets such as trucks, or can they be used for the training of truck drivers? To fulfill the job creating requirements, must the employees be U.S. citizens or can they be green card or work visa holders?

Answers

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    In a direct investment in a trucking company, the training of drivers appears to be an integral part of setting up and operating a trucking business. So, any expenses on the training and recruitment of drivers can be justified particularly if it is part of the fund used to create jobs. With regard to the EB-5 job creation requirement, your assumption is correct. An employer can hire anybody who is authorized to work in the US such as citizens, permanent residents and non-immigrants with employment visas.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    Allocation of funds must be for the operation of the business. So, it can be anything from payroll to purchasing inventory to training. In order for the 10 job creation to count for EB-5 purposes, the individuals hired must be U.S. citizens or green card holders.

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    If you make a direct EB-5 investment in a trucking company, then funds could be used to purchase physical assets such as trucks or to provide training for truck drivers. To meet job-creating requirements, the employees of the new U.S. business must have legal status in the United States.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    You have to show how your funds directly created the jobs and this is ordinarily done through a comprehensive business plan. Generally, you can count U.S. citizens, permanent residents, asylees, and refugees but not nonimmigrants.

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    Phuong Le

    Immigration Attorney
    Answered on

    It will be allocated according to your business plan and can be used for any business expense, regardless of whether it creates jobs, though 10 full-time jobs must still be created. Jobs only qualify if they are legally permitted to work in the U.S., including all three examples you list count unless it is the investor or their immediate family members.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    You can have a mix of uses of funds, between assets and operations. Jobs must be for U.S. citizens or permanent residents only, and be full-time positions as well.

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    Belma Chinchoy

    Immigration Attorney
    Answered on

    Yes. Funds can be allocated to all business expenses. Eligible employees are all immigrants. Work visa holders are excluded.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    The employees may be permanent residents or citizens. Most activities related to the running of the business that you indicate would be acceptable uses of the funds as they seem to be in furtherance of the project.

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