“Invest” Defined

The immigrant investor in the EB-5 Program is required to invest his or her capital. The regulation defines “invest” as follows:

Invest means to contribute capital. A contribution of capital in exchange for a note, bond, convertible debt, obligation, or any other debt arrangement between the alien entrepreneur [the immigrant investor] and the new commercial enterprise does not constitute a contribution of capital . . . .

The regulation also provides that, in order to qualify as an investment in the EB-5 Program, the immigrant investor must actually place his or her capital “at risk,” and that the mere intent to invest is not sufficient.

Taken from USCIS Policy Memorandum regarding EB-5 Adjudications Policy on November 9, 2011.