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How can we invest $1 million in portions and qualify for EB-5?

We are in the U.S. and want to apply for EB-5. We have added $1 million in a business account and have the plan to set up a holding parent company, which will have two fully owned subsidiary companies (fast food, massage spa). Our plan is to invest 50 percent to 60 percent of these funds in buying equipment, furniture, signing a land lease, etc., then file the I-526 first. The rest of the 30 percent to 40 percent will be spent in both businesses as running capital and ongoing business growth, new equipment purchases, etc. Is this plan acceptable for filing I-526?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    It appears you have invested $1 million in an EB-5 commercial enterprise. To determine if your I-526 will be approvable will depend on how the EB-5 commercial enterprise is structured and how the EB-5 business plan is written. It is highly advisable to have an experienced team who will include at least an EB-5 business plan writer, an EB-5 immigration attorney and business attorney to ensure you have a compliant EB-5 business structure and your I-526 is competently prepared.

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    You should invest the required minimum amount ($500,000 if in a TEA or $1 million if not in a TEA ) prior to filing the I-526 petition.

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    Belma Chinchoy

    Immigration Attorney
    Answered on

    Yes, this is fine. Has to be structured in a particular way. Do not transfer any funds prior to discussing this with an immigration attorney.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    Since you already have invested $1 million, whether your I-526 will be successful depends on how the company is structured and how the business plan was written. I would advise you to work with an EB-5 business/corporate lawyer and an experienced EB-5 business plan writer to get the EB-5-compliant documentation done. Finally, you should work with an EB-5 immigration lawyer to document the legal source of funds and tracking for an I-526 petition to be prepared and filed. In order for a successful EB-5 case, it takes a village.

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    Hoang Tu

    Immigration Attorney
    Answered on

    Yes, you also need a detailed business plan on how the funds will be used, how many employees you will have in five years and who is your competition in the newly developed enterprise. Once you have the funds in the account and the business plan, you can submit your I-526.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    The money must be invested to qualify for I-526 filing.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    It sounds like you are setting up a new commercial enterprise with wholly owned job-creating entities. Depending on the details of the structure, that may be acceptable. Properly documenting the path of use of funds will be essential, which will require the assistance of an EB-5 attorney.

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    Charles Foster

    Immigration Attorney
    Answered on

    Given the fact that you have $1 million to invest and you will invest 50 percent to 60 percent of the funds for equipment, furniture and a land lease, and the balance for business growth, etc., you should be able to meet the minimum investment requirement. You should first determine whether or not your enterprise will be located in a targeted employment area. That way, you would only have to meet the $500,000 minimum investment amount.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    You need to have an experienced team. Adding investment into an existing business may trigger different rules to qualify. Where possible, we advise to start a brand new commercial enterprise. While you can invest in portions, we recommend you only apply when you have irrevocably committed the requisite capital amount.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    Yes, it should be acceptable. However, make sure this is well-defined in your business plan. Advisably, contact an EB-5 attorney to plan this type of direct investment.

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