What are the most common problems that EB-5 visa applicants face during the application process?
From the applicant''s perspective: proof of the legal source of funds. From the job creating entity: the issue is proof of job creation.
First and foremost, do your DUE DILIGENCE on potential projects. Check the track record of the Project''s principals and really analyze the project''s claims in the Business Plan and PPM. There are professionals that you can get to help you. From your point a view, once you have selected a project, make sure you have a clean source of funds. This is one of the primary reasons potential investors are denied an EB-5 Visa.
The most common problems we''ve seen in connection with I-526 petition process are documenting the lawful source of funds and/or path of funds. The most common problems in connection with I-829 petition is job creation/maintenance issues.
Proving investor''s legal source of funds has been very challenging in these days, especially when the investor cannot provide his/her tax returns or the tax returns cannot reflect his/her truthful income level. In some counties, the transactions still heavily rely on cash. Anything out of the bank system may be very hard to explain. My firm offers free evaluation on investor?s source of funds, let me know if I can help. Another major problem is the job creation methodology. It''s really out of the control of the investor.
Central issues for EB-5 cases include documenting the legal source of the funds, the path of the funds, and sufficient job creation by the job creating entity.
The source and path of money must be clear.
Either problems with the investment itself or being able to adequately document the source of the funds put at risk.
One of the main requirements for the foreign national investor is supplying information and documentation to prove the lawful source and authentication of the personal investment funds.
Most common in is failure to source the funds.
Overcoming source of funds issues. USCIS applies a more strict evidence standard than allowed by law.
I am not sure of the distinction between the two questions you have posed. In any event, in the I-526 petition process, investors sometimes find that they are unable to submit sufficient documentary evidence supporting their claimed source(s) of investment funds. The other challenge is also a documentary one - providing evidence showing the path of EB-5 funds from the investor to either the escrow account created to hold funds for a Project or the Project itself. USCIS can be demanding where evidential documents are concerned - however, an experienced and knowledgeable immigration attorney may be able provide creative alternatives to bolstering an investor''s lawful source of funds and the path of those funds. Please let us know if you have any additional questions. You may also call our firm to speak to one of our very knowledgeable attorneys.
Two biggest challenges that I-526 applicants face are: proving job creation methodology and detailed tracking of every dollar for the investment source of funds. If the I-526 petition was prepared correctly by the immigration counsel, the most frequent denials recently have been due to proving job creations methodology, which is the business side of the regional center projects.
There are two most common problems that many EB-5 investors face: one is how to choose a capital investment project; and the other is how to prepare documents showing the lawful source of fund.
I hope all is well. The biggest problem for EB-5 applicant depending on the country is to demonstrate the source of funds. If you have any questions, please do not hesitate to contact me. Thank you.
Generally the hardest problem for most investors is showing the paper trail on where their money was earned as many countries do not require the extensive tax and other paperwork to show where the investor?s money came from ? sale of property, doing well in business, many years of salary, gift from a family member, sale of a business, etc.
Investors need to do the due diligence and make sure the program selected is likely to be successful down the road. As for the application, investors should follow the advice of immigration attorney and provide the documentation for the fund. Best.
Inability to demonstrate investment capital comes from lawful source of funds.
Typically, issues of legality of funds are reviewed very carefully and present the largest burden. I will be happy to address individual issues.
One issue that we see is that the source of the investment capital is not easily traceable to the investor.
Some common problems are as follows: Lawful source of funds proof issues, job creation methodology not reasonable, business plan not credible, feasible or comprehensive enough.
The most common problem that we have seen is a lack of coordinated and complete information relating to the classification. It seems like everyone has varying opinions and indeed this may be due to inconsistency from government directives. Due diligence is key.
Are you asking about common problems that investors face in filing the I-526? If so, we commonly see issues relating to evidence of the Source of Funds used to enable the EB-5 investment.
The two areas of pain that we have witnessed amongst our clients are: 1. Proving the lineage of the money and where it originally came from, as well as 2. Hiring the required 10 workers for the particular line of business. Additionally, there is the same problem our Es and Ls face: they have ambitious plans for a business, spend a lot on it and either: a. Only bring a bit of money for maintenance, operations, advertising, and other risks, as well as b. Do not know what they are doing in that line of business, don''t hire consultants or others to help them, and then have to spend a lot of time and money learning the basics.
The most common issue is ensuring that you can properly document the source of funds.
All clients have challenges unique to their personal situation. However, some EB-5 visa applicants may find it challenging to obtain documents for proving the lawful source of their funds, especially if they live in jurisdictions that are not financially mature. For further information please contact Rahbaran & Associates.
Establishing with documentation the source of investment funds.
Proving their source of funds.
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