An "accredited" investor, as that term is defined by Regulation D of the Securities Act, which means any investor meeting at least one of the following conditions:
- Any natural person whose individual net worth (or joint net worth with that person's spouse, if applicable) at the time of purchase exceeds $1,000,000; or
- Any natural person who had an individual income in excess of $200,000 or joint income with that person's spouse in excess of $300,000 in each of the two most recent years and who reasonably expects an income in excess of $300,000 in the current year; or
- Any other "accredited investor" as that term is defined in Regulation D as adopted by the Securities and Exchange Commission; or
The EB-5 applicant's capital investment must be truly at risk and not simply a loan. Guarantees of return of any capital are strictly prohibited, and if given negate the "at risk" requirement of the EB-5 law.
Source of funds
The investor must demonstrate that the capital is in fact his or hers and from an legal enterprise or legal operations of any sort.
New Commercial Enterprise
Must be an enterprise formed after November 29, 1990; and be a for-profit enterprise formed for the ongoing conduct of any lawful business. A commercial enterprise may also involve expanding an existing business.
Each foreign entrepreneur EB-5 investor must create at least 10 full time U.S.-based jobs direct or indirect. (When using indirect job creation, the applicant must use any accepted reasonable methodology to substantiate the creation of the requisite 10 jobs.) Using a designated Regional Center will help you with this process.
Participation in Day-to-Day Management
The applicant must have some Day-to-Day involvement in the management of the new commercial enterprise, such as serving as limited partners in an enterprise.