CAPITAL INVESTMENT REQUIREMENTS

An EB-5 investor must invest the required amount of capital (at least US $500,000) in a new commercial enterprise that will create full-time positions for at least 10 qualif​ying employees. ​ However, the investor should pay attention to some capital requirements to avoid risks during the EB-5 procedure.

Capital Investment Requirements

Capital means cash, equipment, inventory, other tangible property, cash equivalents and indebtedness secured by assets owned by the alien entrepreneur, provided that the alien entrepreneur is personally and primarily liable and that the assets of the new commercial enterprise upon which the petition is based are not used to secure any of the indebtedness. All capital shall be valued at fair-market value in United States dollars. Assets acquired, directly or indirectly, by unlawful means (such as criminal activities) shall not be considered capital for the purposes of section 203(b)(5) of the Act.

Note: The immigrant investor must establish that he or she is the legal owner of the capital invested.

Required minimum investments are:

  • $500,000 if the investment is located within a regional center, also known as Targeted Employment Area (High Unemployment or Rural Area).
  • $1,000,000 if the investment is not located within a regional center, and the investor directly run the business.

Source of Funds

Investors are required to prove their source of funds when joining EB-5. Based on the source of funds, the EB-5 investors are asked for the following documents:

Business documents:

  • Type of business
  • The role of investors
  • Appraisal
  • Revenue

Issued loan documents

  • Evidences show that the company has loan agreements and that the company has transferred money into the personal bank account of the EB-5 investor.

Document on salary and/or employment dividends

  • Tax refunds
  • Account statements
  • Labor contract and payment history

Investment or securities

  • Securities certificate
  • Account statements

Real estate documents

  • Type of property
  • Rental income
  • Price
  • Appraisal

Other sources

  • Family gifts
  • Heritage
  • Divorce or settlement of property
  • Recovery from lawsuits
  • Gifts for sponsors

The investors might not provide evidences that have no relevant to their capital investment. These documents must be translated into English before being submitted to USCIS.

With such useful information about capital investment requirements, RSCC hopes that you find it simple when processing your EB-5 application. If any questions, please do not hesitate to contact us.

(Source: USCIS)

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