What costs can be counted in a direct EB-5 investment? - EB5Investors.com

What costs can be counted in a direct EB-5 investment?

If I make a direct EB-5 investment, will wages I pay to employees count towards the investment requirement – as they are nonrecoverable? For example, I only have $1 million to invest and will need to pay employees once the business is up and running and before it turns a profit. I need to know if I can count that money spent on payroll towards my investment.

Answers

Salvatore Picataggio

Salvatore Picataggio

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Answered on

Payroll may be able to be counted. Working with a good EB-5 professional team will get all of the sources and uses of funds prepared for an approvable I-526 Petition.

A Olusanjo Omoniyi

A Olusanjo Omoniyi

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Generally, the operational expenses, particularly salaries to employees under the EB-5 investment, would count as part of your investment.

Julia Roussinova

Julia Roussinova

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Generally, wages to qualifying employees under the EB-5 program are counted toward the EB-5 investment. Employees cannot include the EB-5 investor or his/her immediate relatives or certain other non-qualified individuals. Your investment must go toward job creation activities.

Charles Foster

Charles Foster

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Yes, a reasonable portion of the investment could be used in conjunction with the payment of salaries given the fact that any active investment requires employees. The minimum investment is $500,000, but only if you are located in a Targeted Economic Area (TEA) and you have to show that you have at least 10 U.S. workers and obviously their salaries must be paid along with any other reasonable payments for salaries, which could be paid out of the investment amount.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

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Answered on

Payment of wages to eligible employees, meaning to U.S. workers other than the investor and his immediate family with the requisite lawful status, can be counted towards the investment if infused correctly and in accordance with the business plan, such that there is a direct connection between the investment and the job creation. It is not about payment of wages - it is about the investment creating new jobs, or in the rare case of a troubled business, saving jobs.

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