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How can I invest the required EB-5 capital through installments?

I want to know if, in the direct investment model, investors can put $500,000 in the project through installments. How can I invest in one part of the project when submitting the I-526 and invest the rest after the case is approved by USCIS?

Answers

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    Dale Schwartz

    Immigration Attorney
    Answered on

    You can put the money in installments. But you will have to show that you have the money and/or assets when you file the I-526. We suggest to clients that they put in a hunk of the money up front, and have a business plan that shows they will be putting in more money within two years of approval of the I-526. Also, show that the additional funds will lead to the hiring of additional employees (until you have 10 or more U.S. employees). A good immigration lawyer should be able to assist you with this.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    It is not possible to make an installment investment after I-526 is approved because EB-5 funds must be at-risk. In a direct investment case, it is possible to properly structure installments with a commitment of funds. Engage the services of an experienced EB-5 immigration attorney to prepare your I-526 petition. In a regional center project case it is not possible to invest in installments. Generally, it will require that you invest the full amount to be deposited in an escrow account. However, these days, with lengthy delays in I-526 processing, most projects cannot afford to hold funds in escrow for two years and the funds get released for project development upon investment or shortly thereafter.

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    Phuong Le

    Immigration Attorney
    Answered on

    That's acceptable because you can submit your I-526 petition with a commitment or intent to invest. This is sometimes common especially for investors who have one last step they need to clear up before filing (such as closing on a home equity line of credit). An explanation and proof of eventual full commitment will have to be submitted at a later stage as well.

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    Charles Foster

    Immigration Attorney
    Answered on

    Should you make a direct EB-5 investment based upon a $500,000 investment in a targeted employment area creating 10 full-time jobs for U.S. workers, you would not necessarily have to invest all of the funds on day one. You would have to show that you have the $500,000 available, show a lawful source of funds and that you have made the additional investment. Remember when an EB-5 petition on Form I-526 is filed, in most cases, including regional center cases, it is always based upon a promise to invest. Clearly, you must make the entire investment at the earliest date and certainly before you file your I-829 petition to remove conditions showing that the 10 full-time jobs were in fact created and the funds fully invested in the new enterprise.

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    Michael A Harris, Esq

    Immigration Attorney
    Answered on

    You cannot, unfortunately, and all of your $500,000 must be committed at the time of filing your I-526 petition. You can have your funds placed in escrow subject to the approval of your I-526 petition, however.

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    Belma Chinchoy

    Immigration Attorney
    Answered on

    Yes, you can. Your attorney will guide you.

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    Stephen Berman

    Immigration Attorney
    Answered on

    No, it is not permissible to wait until after an approval before completing the investment.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    This is not possible; you can't file the I-526 until fully invested.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    These days, particularly after USCIS has published its new adjudication rule on Sept. 11, it would be almost impossible to get your I-526 approved without having had your entire investment funds placed at-risk at the time of adjudication.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    While I have heard of cases approved, most have been denied. The regulations say in the process of investing it is permissible but, in reality, immigration wants to see the full amount of capital invested as of the time of filing. Best not to take a chance.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    You cannot delay the investment until after the case is approved.

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    Robin J Gray

    Immigration Attorney
    Answered on

    You cannot pay as you suggest in your question. You have to invest the entire $500,000 and it must be at-risk prior to submission of the I-526 and approval by USCIS.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Technically, an investor must have "invested or be in the process of investing." Now, that seems to indicate that installments would be accepted, but in practice, I have not seen such an arrangement work. Usually, investors put the entire $500,000 into escrow, which can be held there until filing or approval. USCIS has accepted that as "in the process of investing: and probably would accept part of the funds being released upon filing and the rest upon approval, as long as you can authenticate the entire amount and put the entire amount into escrow before fining the I-526 petition.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    You must have invested the full minimum requisite capital (i.e., $500,000 for a business located in a TEA or $1 million if not located in TEA) before you can file the I-526 petition. You can invest in installments, but you ca not file the petition until the full minimum amount has been invested in the business.

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