EB-5 Investment Visa Requirements

Question: I am going to invest $1,000,000 of the foreign investment for the EB-5 Investment Visa. I am not sure if I invested correctly for the needs of the EB-5 investment visa. Can you help? What is authorized under current immigration laws? Answer: The rules define ‘investing’ to mean contributing capital. The EB-5 investment visa defines a debt financing agreement between you and the new business enterprise in which the foreigner acts only as a creditor and does not constitute a capital contribution. As a result, you cannot determine the capital investment required if the ‘investment’ is in the form of a loan to the business. For example, a capital contribution in exchange for a note, bond, convertible debt, levy, or any other debt agreement between you and the business enterprise is not a qualified investment. The guidelines define capital to include: (one) cash; (two) money equivalents (such as certificates of deposit, treasury bills, or other instruments that can be easily converted into money); (3) equipment; (4) inventory; (five) other real estate; and (6) debt secured by assets owned by the foreigner, for example, a promissory note made by you and payable to the business corporation (provided you are personally and immediately liable and the assets on the EB-5 Investment Visa co. are used to guarantee the debt). In deciding whether the official minimum level of capital has been invested, the capital contributed to the new corporation must be valued at its fair value in US dollars.

Question: Are there other needs besides showing that you invested the money for the EB-5 investment visa? Answer: Yes. You can also establish that the required amount of capital has been put at risk to the point of generating a return on that capital. The mere intention to invest or possible investment agreements that do not imply a present commitment will not be sufficient to establish that you are actively in the investment process. A real commitment of the required amount of capital is needed as: (one) the deposit of money in the business accounts of the company; (two) the purchase of assets for use in the US Corporation; (three) the transfer of assets from abroad for use by the commercial company; (4) the transfer of money to the trading company in exchange for shares; and (five) a loan, mortgage agreement, promissory note, security agreement, or other evidence of the investor’s loan that is secured by your assets, in addition to those of the new business enterprise, and for which you are personally responsible. The investment visa will eventually be able to obtain the green card for you, your spouse and unmarried children. The EB-5 Investment Visa is one of the best ways to obtain residency in the US A loan obtained by a company, securitized by the assets of the company, does not constitute an investment of?capital? Just as the rules say. Also, your personal guarantee on the company’s debt does not transform that debt into personal debt. If the company’s assets guarantee the debt, a creditor has the right to proceed against the company and take possession of the company’s assets in the event of default, even if you personally guarantee the loan. Therefore, your capital is not personally ‘at risk’ under such an arrangement. However, if done correctly, this is a great way to get a green card. You cannot receive guaranteed payments from a new business corporation if you owe money to the business under the EB-5 investment visa.

An agreement under which a new business corporation guarantees an annual return on capital, regardless of whether the company is making a profit, is, in fact, identical to a bond or other debt agreement in which the company agrees to pay installment payments. loans on the capital lent to you (although you may suffer a loss of the borrowed funds should the business fail, the risk you incur in such cases is no different than that incurred by a bondholder or any other commercial creditor). Similarly, a note with a large final balloon payment combined with the option to sell your interest in the business at a fixed price and guaranteed returns on your cash outlays does not meet the “at risk” component in the regulations by the same reasons. . therefore, it is important to ensure that the investment is appropriate and at risk. The EB-5 investment visa has some strict requirements, but if they are properly documented, then you should be able to get an EB-5 investment visa for yourself and your family.