An investor must have the qualification to support a successful business investment. What is the financial criteria? See below to know:
- A net worth of US $1.05 million – For an individual or a married couple; or
- $200,000 or more in Individual Income, or $300,000 or more joint income, in each of the two previous years; and
- Comparable level of Future income and assets.
Source of Assets, plus any obligations or legal liabilities associated with these assets, play an important role in your EB-5 application. To prevent money laundering and resolve security issues, USCIS meticulously checks the source and course of the funds of an applicant. Ensuring the legitimate source and channel of their investment funds is crucial for EB-5 investors. They must present documentation that complies with USCIS’s strict requirements. In case the applicant isn’t able to provide certain documentation, he/she may submit a declaration and must explain why they are unable to provide the required documents.
In case you do not have enough investment funds, you might be wondering what can be a possible lawful alternative source of funds, right? Worry not for you may obtain funding from a variety of sources like salary, stocks, equities, and bank account deposits. Here are some of the other possible lawful funding sources:
Loans as a funding source for EB-5 investments
Typically, a financial institution provides a loan for an EB-5 investment. The loan’s collateral must be specified. In contrast to a previous regulation, USCIS now permits the use of a loan as a source of financing only if the investor is the primary lender. Additionally, the collateral must be worth at least as much as the loan amount. USCIS may issue a request for evidence (RFE) if the collateral value is close to the loan amount. EB-5 best practices advise the loan amount should not exceed 70% of the value of the collateral property.
Tax returns and other financial records
Corporate and individual tax returns should be filed in any jurisdiction within the last 5 years. When the tax returns of an applicant reveal a larger income in previous years, he or she should likewise provide tax returns for the 3 years with the highest income. Preferably, EB-5 tax planning must occur before filing and with the assistance of a professional.