EB-5 investor visa is a pathway to secure a green card that ultimately leads to permanent residency in the USA. This is a popular way of obtaining citizenship among businessmen and people with excellent financial stability.
The State offers this program for entrepreneurs, investors, and people wanting to start a business there, but for quality, investing at least USD 1,050,000 is mandatory. If you wish to invest in a US business located in a rural or developed sector, the minimum investment amount is USD 800,000.
In addition to the investment, the business should create at least ten full-time employment opportunities for the US workforce. Non-profit and real estate investment enterprises are not qualified for the program. It is because the country wants commercial businesses to drive the economy.
Now that you know the EB-5 visa and its requirements briefly (please get in touch with an eb 5 immigration lawyer to understand the exact requirements as per your profile), let us look into some questions that a lot of people have but only a few ask about this visa.
What do lawful sources of funds for an EB-5 visa refer to?
One major requirement of the EB-5 visa is that the amount invested should be lawfully obtained. It clearly indicates that the money should be legal, and to prove it, you will have to submit necessary documents showcasing the sources of your fund, including tax returns and bank statements.
A few examples of lawful sources of money are:
- Inheritance
- Loan against equity in properties/real estate
- Money earned from employment
- Money from property sale
- Gift
- Money from business sales
Please note that if the authorities are suspicious about the source of funds or you are caught engaging in illegal conduct to arrange finances, your appeal will be rejected. Moreover, you might have to face additional consequences.
Is it Mandatory for me to Invest Money, or Can I Invest Something Else That Adds Value?
According to the EB-5 regulations, investors should invest capital in the business, and capital can include inventory, cash, cash equivalents, equipment, proceeds from a loan, and other tangible properties.
So, the investment criteria do not depend solely on cash. However, please note that if you are investing money from a loan, the loan must be secured by your assets.
One more thing to remember is that if you invest anything apart from cash, it will be valued as per its fair market value.
If I Purchase a Business With Ten Employees, Will That be Counted as the Creation of Ten Full-Time Opportunities (One Requirement of The EB-5 Visa)?
You can purchase a business with existing employees, but as per the EB-5 visa program, it will not be counted as the creation of employment. It means that you must create a minimum of ten new employment opportunities irrespective of whether you purchase or start a business. However, the government might provide an exception in some cases for troubled businesses.
The term troubled business indicates that the business (should be at least two years old) has undergone a net loss of about 20% of the net worth continuously for one or two years prior to the date the applicant filed Form I-526. In this case, the investor can consider that they are saving existing ten employment against the same number they were required to create. However, it is important to prove that you can keep these jobs in existence for a minimum of two years.
Please note that if a troubled business does not have ten employees in total, you will have to create opportunities as per the US citizenship by investment criteria for the remaining number to reach ten.
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