- Retrogression
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General
- What are the protections and guarantees in the Berkeley Regional Center EB-5 projects?
- Can I travel outside the U.S. after I receive my permanent residency?
- How many family members can immigrate through EB-5 investment?
- Is approval of my application for U.S. Citizenship after 5 years guaranteed?
- Is EB-5 a passive investment?
- How Long Should an EB-5 Investor Remain in the United States Each Year?
- If an investor has EB-5 visa and conditional green card, does he/she need to stay in the US for a minimum number of days in the first 2 years in order to gain a permanent green card? How about his/her dependents?
- What is a reentry permit?
- Can Adopted Children immigrate with me on EB-5?
- Accredited Investor
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Requirements
- For EB-5, What is Considered a Commercial Enterprise?
- Are there any nationality restrictions for EB-5 applicants?
- USCIS requires EB-5 investments to be “At-Risk”, so how do your projects have guarantees?
- What are the Investment Requirements for EB-5?
- Can an Investor Apply if They Have Been Rejected or Terminated in the Past by USCIS for a Previous Visa?
- May two or more investors qualify for immigration based upon a pooled investment in a single business?
- What is the I-526 Petition?
- There is a background check required for EB-5 investment, what information is USCIS concerned with?
- What Can Disqualify an Investor from Participating in the EB-5 Program?
- What is an EB-5 I-526 Petition?
- What is an I-829 Petition?
- What is a I-485 Petition
- What are the various forms and petitions for EB-5 investments?
- Targeted Employment Area
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Source of Funds
- Can a Loan Be Used to Supplement My EB-5 Capital Investment?
- Can I use a Bank Loan?
- What documents need to be translated when filing the I-526 petition?
- Can I Use a Gift as My Source of Funds?
- Who can gift me funds for my $500,000 investment?
- Can I Use 401(k) funds for EB-5 Investment?
- What is the Source of Funds report?
- 5 Things EB-5 Investors Can Do Preparing for Their Source of Funds Report
- Cost
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Denial
- Partial Payments
- Job Creation
- Developer
- Regional Center
- Time
-
Risk
- EB-2 / EB-3
- Process
What are the Accredited Investor requirements?
What is an Accredited Investor?
An accredited investor is a person or entity that can deal with securities not registered with financial authorities. Accredited investors satisfy at least one of the requirements regarding income, net worth, asset size, governance status or professional experience.
Do you meet one or more of the following requirements?
Net Worth Test
A person is may be considered an accredited investor if he or she has a net worth exceeding $1 million, either individually or jointly with a spouse. For the purposes of EB-5, net worth does not include your primary residence.
Income Test
A person must demonstrate an annual income of $200,000, or $300,000 for joint income, for the last two years with expectation of earning the same or higher income. An individual must have earned income above the thresholds either alone or with a spouse over the last three years.Note: The income test cannot be satisfied by showing one year of an individual’s income and the next two years of joint income with a spouse. The exception to this rule is when a person is married within the period of conducting the test.
Other Methods
The SEC also considers a person to be an accredited investor if he or she is a:
- General partner
- Executive officer
- Director
- Or a related combination thereof for the issuer of unregistered securities
For the Accredited Investor Status, What is Net Worth? How is it Calculated?
Net worth is the sum of all of your assets worldwide. This could take the form of investment property, stocks and bonds, cash or cash equivalents, etc. Generally, loans are not accepted for net worth, but you can use a loan secured by your personal assets, such as a home equity line of credit. For the purposes of the accredited investor requirement, your primary residence is not included in the calculation of your net worth.
Accredited Investor Example Scenarios
Example 1
The investor earns more than $200,000 USD per year and has earned this income for the last two years and expects to continue earning this much, but does not have a net worth of $1,000,000 USD.
In the case the investor is considered to be an accredited investor.
Although the investor does not meet the net worth test of having more than $1,000,000 USD, the investor meets the net income test by earning more than $200,000 per year.
Example 2
The investor earns less than $200,000 USD per year, but has a net worth of more than $1,000,000 USD. The investor has assets such as property in other countries, stocks and bonds, cash, as well as gifted funds from family members.
In the case the investor is considered to be an accredited investor.
Although the investor does not meet the net income requirement of earning at least $200,000 in income each year for the last two years, the investor does meet the net worth requirement of $1,000,000 USD in total assets, excluding their personal residence.
Example 3
The investor earns less than $200,000 USD per year and does not have a net worth of $1,000,000 USD.
In the case the investor is NOT considered to be an accredited investor.
The investor does not meet either the net income requirement or the net worth requirement. In this case, the investor can take out a loan secured by personal assets, such as a home equity line of credit (HELOC), or they can be gifted funds by family members in order to reach the $1,000,000 USD net worth requirement.