In a direct EB-5 project, can EB-5 investment capital be allocated to any part of the project?
While EB-5 investment capital can be allocated to any part of the project, the key to fulfilling EB-5 Program requirements is that the project’s spending creates the minimum required jobs.
Therefore, by itself, the purchase of land would not be helpful to EB-5 investors.
If an EB-5 investor makes a $1 million capital investment into a direct project that’s not located in targeted employment area, they could split their capital and allocate a portion to the purchase of land and use the remainder as working capital to hire the required minimum amount of direct full-time employees.How else can EB-5 investment capital be used?
- Salaries
- Rent
- Construction
- Permits and Licensing
- Equipment
- Materials
- Vendors
To be able to file an I-829 Petition to remove conditions on their permanent residency, an EB-5 investor must be able to prove the following:1. They made the $1 million capital investment. Any income that the business generates that’s reinvested into the business does not count toward the EB-5 minimum capital investment requirement.2. They sustained the investment for necessary period of time.3. The project created the requisite number of qualified jobs.
For more information about EB-5 funds, send us a message.
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