| Question: I'm going to invest $1,000,000 from the | | | | by the commercial corporation; ( four ) the |
| foreign investment for the EB-5 investment Visa. I am | | | | transference of monies to the commercial enterprise in |
| not sure if I correctly invested for needs of the EB-5 | | | | exchange for shares of stock; and ( five ) a loan, |
| Investment Visa. Can you help? What is authorized | | | | mortgage agreement, promissory note, security |
| under current immigration laws? Answer: the rules | | | | agreement, or other evidence of the investor?s |
| define 'invest' to mean the contribution of capital. The | | | | borrowing which is secured by your assets, apart from |
| EB-5 Investment Visa defines a debt financing | | | | those of the new commercial enterprise, and for which |
| arrangement between you and the new commercial | | | | you are personally responsible. The investment visa will |
| concern in which the alien is acting only as a creditor | | | | eventually be able to get you, your spouse and |
| doesn't constitute a contribution of capital. As a result, | | | | unmarried children the green card. The EB-5 |
| you can't determine the requisite investment of capital | | | | Investment Visa is one of the nicest ways to obtain |
| if the 'investment' is made in the shape of a loan to the | | | | residency in the U.S. A loan obtained by a company, |
| company. As an example, a contribution of capital in | | | | securitized by assets of the company, does not |
| exchange for a note, bond, convertible debt, duty, or | | | | constitute an investment of?capital? As outlined by the |
| any other debt arrangement between you and the | | | | rules. In addition, your personal guarantee on the |
| commercial enterprise isn't a qualifying investment. The | | | | business?s debt doesn't transform such debt into |
| guidelines define capital to include: ( one ) cash; ( two ) | | | | personal debt. If the assets of the enterprise are |
| money equivalents ( such as certificates of deposit, | | | | securing the debt, a creditor has got the right to |
| treasury bonds, or other instruments that can be | | | | proceed against the company and take ownership of |
| converted readily into money ); ( 3 ) equipment; ( 4 ) | | | | the assets of the enterprise in the event of default |
| inventory; ( five ) other real property; and ( 6 ) | | | | even if you personally guarantees the loan. Therefore, |
| indebtedness secured by assets owned by the alien, | | | | your capital isn't personally 'at risk' under such an |
| e.g, a promissory note made out by you and payable | | | | arrangement.However, if done properly, this is a great |
| to the commercial corporation ( provided that you are | | | | way to obtain the green card. you can't receive |
| at once and personally liable and the assets of the | | | | assured payments from a new commercial |
| EB-5 Investment Visa co. are not used to secure the | | | | corporation if you owe money to the enterprise for the |
| debt ). In deciding whether the official minimum level of | | | | EB-5 Investment Visa. |
| capital has been invested, the capital contributed to the | | | | An agreement under which a new commercial |
| new corporation must be valuated at fair valuation in | | | | corporation guarantees an annual return on capital, |
| U.S. Dollars. | | | | regardless of whether the business is making a profit |
| Question: Are there other needs than showing you | | | | is, in fact, identical to a bond or other debt arrangement |
| invested the money for the EB-5 Investment Visa? | | | | in which the company promises to pay loan payments |
| Answer: Yes. You may also establish that the required | | | | on capital lent to it by you ( while the you can suffer a |
| quantity of capital has been placed at risk for the point | | | | loss of the funds lent in the event the business fails, |
| of generating a return on that capital. A mere intention | | | | the risk incurred by you in cases like these is no |
| to invest, or prospective investment agreements | | | | different than that incurred by a bondholder or any |
| entailing no present commitment won't suffice to | | | | other business creditor ). Similarly, a promissory note |
| establish that you are actively in the procedure of | | | | with a big final balloon payment combined with the |
| investing. Real commitment of the required amount of | | | | choice to sell your interest in the business at a fixed |
| capital is needed like: ( one ) the deposit of monies in | | | | price and guaranteed returns on the your money |
| the enterprise?s business accounts; ( two ) the | | | | outlays fails to meet the 'at risk' component in the |
| purchase of assets for use in the U.S. Corporation; ( | | | | regulations for the same reasons. thus, it's important to |
| three ) the transferring of assets from abroad for use | | | | be certain the investment is proper and at risk. |