So does it mean that the business should be done SOLELY with your own capital? No debt allowed at all? That does not make sense. If I am ready to invest 500k I should be allowed to borrow up to 1mn with a normal debt equity ratio of 2:1 - and then I can run a business for 1.5mn.

How if I decided to do some international trading - and opened an office for importing goods into USA or exporting from USA? In that case, I could use the 500k as my working capital and borrow trade finance in terms of say letters of credit that I would open on my suppliers ranging from 500k to 1mn. Would that be allowed? In that case, whole of my 500K is at stake and I am buying goods worth 1-1.5mn to sell in or out of USA. Would it be considered loan and therefore not allowed for GC purposes?

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Chandresh

Advice is free – lessons I charge for!!

AFAIK borrowing is not permitted under an EB5 investment.... it has to be your own sole capital.

If you need 1 M , get it first and then apply for EB5.

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Fido.

What would this mean?

"Capital means cash, equipment, inventory, other tangible property, cash equivalents and indebtedness secured by assets owned by the alien entrepreneur, provided that the alien entrepreneur is personally and primarily liable and that the assets of the new commercial enterprise upon which the petition is based are not used to secure any of the indebtedness. "

It can be a loan secured by assets owned by alien entrepreneur.

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Chandresh

Advice is free – lessons I charge for!!

I think what it refers to is - If you have a $1 M in deposits or a fully owned personal property elsewhere and you take a loan against that , then it is valid as this loan that you have taken is secured by your own assets .

At the same time you cannot take a loan by pledging a new asset of the new business for eg building.

Either way , the money you bring in the business should be your own /backed by your own to qualify....... No mortgage , no external unsecured debt.

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Fido.

It will be nice to open up that link that gives you the pertinent details for that VISA. Then we can discuss the same investment and the underlying principle upon which it is based.

Any one entering the USA on a Business Visa surely does know that when used through a Bank will be in a position to obtain other benefits that the locals enjoy. That is a universal principle upon which Banking is conducted.

If such restrictions that we are suspecting that it exists, can be verified with a phone call to a Banker or through a lawyer who helps you open up a Business Entity.

If it says NO, then we have other avenues that open up automatically. More on it if you guys are serious to enter into USA on a Business Visa.

FH.

I just want to express here that with a sum of 100,000 dollars, you can currently leverage it to 10 million dollars, but it cannot leave the brokerage that facilitates you with it. fh.

I do not think that should be a problem. Let's say I want to put up a small bakery or a small manufacturing/processing unit. The total investment in plant and equipment would be say 1.2mn and the bank is ready to loan me 700k with my equity as 500k with all assets pledged to the bank/financial institution. Logically, such a business would qualify for the EB5 visa since I am putting in my 500k to finance a part of plant and equipment and the first charge is held by the lending institution.

Do clarify that with someone - and if you find that such a thing is possible, then it is easier to find a business which can employ 10 full time employees. Otherwise it is almost impossible to have a business with 500k employing 10 persons whose minimum wages bill (including all benefits) would be an average of 40k, and therefore total wage bill alone would be 400K.

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Chandresh

Advice is free – lessons I charge for!!

Quote:

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Originally posted by chandresh
I do not think that should be a problem. Let's say I want to put up a small bakery or a small manufacturing/processing unit. The total investment in plant and equipment would be say 1.2mn and the bank is ready to loan me 700k with my equity as 500k with all assets pledged to the bank/financial institution. Logically, such a business would qualify for the EB5 visa since I am putting in my 500k to finance a part of plant and equipment and the first charge is held by the lending institution.

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Quote:

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Originally posted by chandresh
and that the assets of the new commercial enterprise upon which the petition is based are not used to secure any of the indebtedness.

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Fido.