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Capital Investment Requirement
USINFO | 2014-01-03 14:23
Investment Amount
The normal amount of the investment required to apply for a green card through investment is one million dollars ($1,000,000), however the investment can be reduced to half million dollars ($500,000) if invested in a “targeted employment area”. A targeted employment area is a “rural area” or other “designated area” where the unemployment rate equals 150 percent or more of the national average.
The capital doesn’t need to be invested all at same time, or all at the time of application. The investment can be made partially over a certain period of time. The USCIS requires that the investor will prove his ability to invest and the availability of the investment capital, and a legal commitment to the required capital. Just a plan to invest won’t be enough to be able to apply, but again the capital can be invested partially. The USCIS will require evidence that the investor has invested or is in the process of investing the amount required.
Targeted Employment Area (High Unemployment or Rural Area)
As previously discussed the minimum qualifying investment made in a Targeted Employment Area is $500,000. There are two types of targeted employment areas:
(1) High-unemployment areas experiencing at least 150 percent of the national unemployment rate.
(2) Rural areas in the United States outside a metropolitan statistical area (as designated by the Office of Management and Budget OMB) or outside the boundary of any city or town having a population of 20,000 or more according to the decennial census.
Capital at Risk Requirement
The capital invested must be at risk in order to comply with the green card investor program requirements. The investor’s capital, including funds and other assets, has to be at risk in the commercial enterprise with the objective of generating a profit. To be eligible to receive a green card as an investor, there can not be an Indemnity policy with a redemption agreement or a guaranteed buy-back arrangement for the alien investor’s investment in the commercial enterprise. If the USCIS makes a determination as to whether a specific indemnity policy in the investment agreement is contrary to the statutory and regulatory requirements then the application can be denied.
The funds used by the investor must be the investor’s own personal funds, not a loan to the business, and not a secured financial instrument secured by the assets of the business. Loans to the investor can be included in the required investment amount as long as such loans are secured by the investor directly using his personal assets or other ways to secure the debt. The key element here is that the U.S. enterprise or the assets of the enterprise can not be used as a guarantee to a loan given to the investor to be used to complete the required amount of investment. Basically the investor should have a risk when making this investment, but the business itself should not be at risk for the investor’s capital being invested in the business.
Form of Investment
The investment can be in the form of cash, assets, inventory, other tangible property calculated at a fair market value, cash equivalents, or 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. The investment cash or assets must have been acquired by lawful means to be eligible to apply for the EB-5 program. The investment capital cannot be borrowed, any loan, promissory note, mortgage, or other debt arrangement secured by the assets of the newly created enterprise does not constitute an investment. Likewise, any loan or debt arrangement between the entrepreneur and the newly created enterprise does not constitute an investment.
The normal amount of the investment required to apply for a green card through investment is one million dollars ($1,000,000), however the investment can be reduced to half million dollars ($500,000) if invested in a “targeted employment area”. A targeted employment area is a “rural area” or other “designated area” where the unemployment rate equals 150 percent or more of the national average.
The capital doesn’t need to be invested all at same time, or all at the time of application. The investment can be made partially over a certain period of time. The USCIS requires that the investor will prove his ability to invest and the availability of the investment capital, and a legal commitment to the required capital. Just a plan to invest won’t be enough to be able to apply, but again the capital can be invested partially. The USCIS will require evidence that the investor has invested or is in the process of investing the amount required.
Targeted Employment Area (High Unemployment or Rural Area)
As previously discussed the minimum qualifying investment made in a Targeted Employment Area is $500,000. There are two types of targeted employment areas:
(1) High-unemployment areas experiencing at least 150 percent of the national unemployment rate.
(2) Rural areas in the United States outside a metropolitan statistical area (as designated by the Office of Management and Budget OMB) or outside the boundary of any city or town having a population of 20,000 or more according to the decennial census.
Capital at Risk Requirement
The capital invested must be at risk in order to comply with the green card investor program requirements. The investor’s capital, including funds and other assets, has to be at risk in the commercial enterprise with the objective of generating a profit. To be eligible to receive a green card as an investor, there can not be an Indemnity policy with a redemption agreement or a guaranteed buy-back arrangement for the alien investor’s investment in the commercial enterprise. If the USCIS makes a determination as to whether a specific indemnity policy in the investment agreement is contrary to the statutory and regulatory requirements then the application can be denied.
The funds used by the investor must be the investor’s own personal funds, not a loan to the business, and not a secured financial instrument secured by the assets of the business. Loans to the investor can be included in the required investment amount as long as such loans are secured by the investor directly using his personal assets or other ways to secure the debt. The key element here is that the U.S. enterprise or the assets of the enterprise can not be used as a guarantee to a loan given to the investor to be used to complete the required amount of investment. Basically the investor should have a risk when making this investment, but the business itself should not be at risk for the investor’s capital being invested in the business.
Form of Investment
The investment can be in the form of cash, assets, inventory, other tangible property calculated at a fair market value, cash equivalents, or 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. The investment cash or assets must have been acquired by lawful means to be eligible to apply for the EB-5 program. The investment capital cannot be borrowed, any loan, promissory note, mortgage, or other debt arrangement secured by the assets of the newly created enterprise does not constitute an investment. Likewise, any loan or debt arrangement between the entrepreneur and the newly created enterprise does not constitute an investment.
