What is the Required Amount of Investment?
The amount of capital necessary to make a qualifying investment in a commercial enterprise varies depending on where the commercial enterprise is located and the unemployment rate in that geographic area. The amount of capital necessary to make a qualifying investment in most areas, which at the time of investment has an unemployment rate significantly below the national average unemployment rates. These areas as called “high employment areas.” The amount of capital necessary to make a qualifying investment in a rural area, or an area which has experienced unemployment of at least 150% of the national average, is only five hundred thousand U.S. dollars ($500,000). These areas are called “targeted employment areas.” Targeted employment areas are designated by the state government ofeach state in U.S.
“Capital” is defined by the USCIS as cash, equipment, inventory, other tangible property, cash equivalents, and indebtedness secured by assets owned by the foreign national, provided the foreign national is personally and primarily liable. To constitute a bona fide investment, the foreign national must not contribute his or her capital in exchange for a note, bond, convertible debt, obligation or any other debt arrangement between the foreign national and the new commercial enterprise. In addition, the assets of the commercial enterprise upon which the petition is based many not be used to secure any of
the foreign national’s indebtedness. All capital is computed at fair market value in U.S. dollars. Any assets acquired directly or indirectly by unlawful means (such as through drug trafficking, other criminal activities or being illegal in the U.S.) may not be used for the purposes of this section. A commercial enterprise is any for profit activity formed for the ongoing conduct of lawful business. It may be a sole proprietorship, partnership (limited or general), holding company, joint venture, corporation, business trust, or other entity, and may be publicly or privately owned. A commercial enterprise does not include a noncommercial activity such as owning and operating a personal residence. The establishment of a new enterprise includes the creation of an original business, the purchase of an existing business, or the expansion of an existing business. If the foreign national chooses to purchase an existing business, the business must be reconstructed or recognized in such a way that a new commercial enterprise results. If the foreign national chooses to expand an existing business through the investment of the required amount of capital, a substantial change in the net worth of the business or the number of employees must result from the investment of capital. A “substantial charge” means a 40% increased in the new worth or the number of employees in the business. This does not exempt the foreign national from the requirements relating to the amount of capital investment and the creation of full-time employment for ten qualifying employees.
To learn more about EB-5 Green Cards, read the Frequently Asked Questions section which may answer your initial questions.
To learn more about the EB-5 Green Card program, schedule a free consultation with EB-5 Green Card attorney Mark Ivener. Your total investment will vary with your investment choice, your due diligence, and other factors.
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