Can I sell shares of my company to qualify for EB-5?

The United States EB-5 program is an alternative for foreign investors who wish to obtain permanent residence (green card) through an investment that generates jobs. To qualify, the investor must apply a significant amount of capital in a new commercial enterprise or a regional center, demonstrating that the funds are “at risk” and that the operation will result in the creation of at least 10 full-time jobs.

This “at risk” capital requirement means that the funds must be available for the enterprise and subject to investment fluctuations, which is a crucial point for program eligibility.

Regarding the possibility of selling shares of your company to meet the EB-5 requirements, the answer is not as simple as “yes” or “no.” In some cases, the proceeds obtained through the sale of shares may be used, provided that it is demonstrated that the source of these funds is lawful and that they have been converted into liquid capital available for investment.

The transaction will need to be fully documented, evidencing both the legality of the sale and the transformation of the assets into money suitable for investment in the new commercial enterprise. It is very important to note that the amount obtained must be effectively allocated as “at risk” capital at the time of entry into the EB-5 program.

Furthermore, it is essential to strictly follow immigration laws and guidelines established by the United States Citizenship and Immigration Services (USCIS). As the details and circumstances of each case can vary greatly, the use of resources from the sale of shares to meet EB-5 requirements may depend on several factors, such as how the transaction was structured, the source of the funds, and how those funds will be invested.

It is also wise to seek assistance from professionals specialized in immigration and finance, avoiding scams or marketing campaigns that promise miracle solutions. Remember that, although it is possible to use funds from various sources for the EB-5 investment if all requirements are met, each case is unique and requires detailed analysis.

Following legal guidance and taking care of documentation are essential steps to ensure that the transaction complies with American immigration regulations.

Victoria Harper

Editor-in-Chief

Meet the author

Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.