How Does an Immigrant Investor Prove the Establishment of and Investment in a New Commercial Enterprise Under the EB-5 Immigrant Investor Program
The EB-5 Immigrant Investor Program presents foreign national investors and entrepreneurs and their qualifying relatives with an opportunity to live and work permanently in the United States through investment in a new commercial enterprise or restructured existing business. In order to obtain conditional resident status, the immigrant investor bears the burden of proof in showing that he or she meets the numerous requirements of the EB-5 program. Two of the more important evidentiary requirements involve proving the establishment of the new commercial enterprise and the investment in the new commercial enterprise.
To show that a new commercial enterprise has been established, the immigrant investor must provide USCIS with articles of incorporation, business trust agreement, joint venture agreement, certificate of limited partnership, partnership agreement, or certificate of merger or consolidation. Other investors will provide a certificate evidencing authority to do business in a state or municipality for the new commercial enterprise. Other evidence that the required amount of capital has been transferred to the existing business and has resulted in a substantial increase in the net worth or number of employees will suffice. This can include agreements, payroll records, financial reports, investment agreements or stock purchase agreements.
Along with proving that the new commercial enterprise has been established, the immigrant investor must prove that he has committed the required amount of capital to the new commercial enterprise. Such evidence may include, but is not limited to, bank statements showing the amounts deposited in the US business account. Apart from cash investments, immigrant investors may invest assets and/or equipment in the new commercial enterprise. In that case, the immigrant seeking and EB-5 green card should provide invoices, sales receipts, purchase contracts, US Customs commercial entry documents, bills of lading, and/or transit insurance policies. If the investor transfers capital in exchange for stock (voting or nonvoting, common or preferred), evidence of such transfers should be included. Such stock may not include terms requiring the new commercial enterprise to redeem it at the holder’s request. Other evidence may include loan or mortgage agreements, security agreements or promissory notes, or other evidence of borrowing which is secured by assets of the petitioner, other than those of the new commercial enterprise, and for which the petitioner is personally and primarily liable.
If you are considering the EB-5 process, contact The Nunez Firm to schedule a consultation. Managing attorney Jay Nunez will help you better understand the process and whether the EB-5 program is a viable option for you.