Step 4: Proof of Investment

Proof of Investment and “At Risk” Status of the Funds:

The I-526 visa petition must be accompanied by evidence that the Investor has placed the required amount of capital at risk for the purpose of generating a return on the capital placed at risk.  Evidence of mere intent to invest, or of prospective investment arrangements entailing no present commitment, will not suffice to show that the petitioner is actively in the process of investing.  The Alien Investor must show actual commitment of the required amount of capital, which in the case of a targeted employment area or a rural area, is $500,000.  The Investor must place the funds into an escrow account, where they are held until the Investor receives notice that his/her I-526 application has been approved by USCIS, at which time the funds are released from escrow and invested in the project.  The invested funds purchase either a unit of a partnership equity investment or constitute a loan to the job-creating entity.  Such evidence may include, but is not limited to:

  1. Bank statement(s) showing the amount(s) deposited in U.S. business accounts for the new enterprise.
  2. Evidence of assets which have been purchased for use in the U.S. enterprise, including invoices, sales receipts, and purchase contracts containing sufficient information to identify such assets, the date of purchase, and the purchasing entity.
  3. Evidence of property transferred from abroad for use in the U.S. enterprise, including U.S. Customs Service commercial entry documents, bills of lading, and transit insurance policies containing ownership information and sufficient information to identify the property and to indicate the fair market value of such property;
  4. Evidence of monies transferred or committed to be transferred to the new commercial enterprise in exchange for shares of stock (voting or non-voting; common or preferred).  Such stock may not include terms requiring the new commercial enterprise to redeem it at the holder’s request; or
  5. Evidence of any loan or mortgage agreement, promissory note, security agreement, or other evidence of borrowing which is secured by assets of the immigrant petitioner, other than those of the new commercial enterprise, and for which the petitioner is personally and primarily liable.

It is anticipated that investment in the immigrant’s funds will  will be made in the form and equity model (the purchase of a partnership unit) or a loan model (the accumulated funds will be pooled and loaned to the job-creating entity)  The monies will be held in an escrow account for the time period during which the Immigrant Investor prepares, submits, and receives approval from USCIS of the I-526 Petition. The regional center will provide evidence that the initial deposit has been placed in an escrow account prior to the immigrant investor filing his/her petition.  The escrow account will be established in a protected, interest-bearing account with a bank or legal counsel in the U.S. or overseas. In the event that the Petition is denied, the escrowed funds will be returned to the applicant.