How can I use my company''s revenue as a source of funds? - EB5Investors.com

How can I use my company”s revenue as a source of funds?

I am a 100% owner of a company outside of the U.S. The company has good revenue but generates very little profit and therefore little tax returns. Would an unsecured loan from my company”s gross revenue be a lawful source of funds according to EB-5 law?

Answers

Reza Rahbaran

Reza Rahbaran

Immigration Attorneys
Answered on

The money must belong to the investor. If your company generates very little profit, then an EB-5 visa may not be appropriate for you.

Jeffrey E Campion

Jeffrey E Campion

Immigration Attorneys
Answered on

Hello. I would recommend that instead of a loan, the company declare a dividend to you. That is much cleaner.

William A Stock

William A Stock

Immigration Attorneys
Answered on

No. The money has to belong to the investor, so unless he can distribute the funds to himself (which you generally can''t do with revenue), he is going to have a problem. Even if the company loaned it to him, he would have to show that the company has sufficient assets to make the loan and still meet its liabilities.

Salvatore Picataggio

Salvatore Picataggio

Immigration Attorneys
Answered on

There are methods for company loans to be an acceptable source of investment funds. We would review the entire source of the investment funds for compliance with EB-5 rules and regulations.

Fredrick W Voigtmann

Fredrick W Voigtmann

Immigration Attorneys
Answered on

You have to be careful with using a company loan for your source of funds. USCIS will ask for documents proving that the company has the financial ability to make the loan. If you claim the funds come from gross revenue, then that would have to be reflected in the company's financial statements and the funds would have to be clearly identified in the company's bank statements. USCIS will want an explanation as to how the loan amount can exceed company profits, or your share in in the company. It would need to be clear how the loan is secured if it is in excess of your interest in the company (i.e. percent ownership of the profits). It might be possible, but you should consult with an experienced EB-5 immigration attorney on this matter. We can give you legal advice and perhaps come up with other options for your source of funds.

Lana Kurilova-Rich

Lana Kurilova-Rich

Immigration Attorneys
Answered on

Probably not because it sounds like your company cannot afford to loan you this much, since its net profit is marginal. If you could show that you saved up over the years from your own earnings, that would be acceptable, but you would have to show years of bank statements to show gradual savings.

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