A common question asked by EB-5 investors is whether the investment can be shared or “pooled” by a group of friends or extended family.
When a regional center like LCR works with an investor, a lot of effort is placed on the source of funds because the full amount of the funds raised needs to be well documented.
EB-5 investors can source their investment from multiple sources, and the sources can be gifts and loans of documented funds from friends and extended family, however only one name can go on the investment documentation. This is the Primary Applicant and it is this person, plus their spouse and immediate family, that receive green cards when the required 10 jobs are created by the project.
If the investment is raised from assets in the spouse or childrens’ names, they can receive the immigration benefits. If the capital is raised from friends or extended family, they would not receive a green card unless they also made a petition by investing in their own names.
Pooling money into a Project
The EB-5 Immigrant Investors Program also has a direct investment process that allows investors to fund a project directly. In this case a set of investors can come together to fund a business in the United States, but each investors needs to invest at least $900,000 and create 10 jobs. They would also need to put the project forward with the expected economic studies for USCIS approval and meet additional requirements that a regional center like LCR does when it sources its projects.
Regardless of the project type, USCIS will need to have complete proof concerning the source of the funds. Each investor will have to provide records such as income statements, tax records or other forms of documents that will show that investment came from a legal source. For LCR projects, we help with this process but always recommend investors also seek the guidance of a professional immigration attorney. They assist in selecting the needed documentation and provide the legal advice on how to complete the process.
