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RURAL MUNICIPALITY OF TACHÉ · EB-5 FIELD GUIDE

Must every EB-5 investor personally run daily business operations?

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THE DIRECT ANSWER

Daily hands-on operation is not universally required. Assess actual management or policy-formulation participation under the applicable rule.

Read the agreement’s rights

Qualifying limited-partner rights may satisfy participation. A label such as passive investor does not alone establish whether the actual rights are sufficient.

Current USCIS policy treats lawfully obtained loan proceeds contributed as cash, so they need not satisfy the personal-liability and personal-collateral test that applies when indebtedness itself is contributed. The ten full-time jobs must be new jobs created by the investment for qualifying U.S. workers, unless the investment is in a troubled business meeting specific criteria, where preserving existing jobs may count. The investment must create at least ten positions of thirty-five or more hours per week for qualifying U.S. workers; the investor, spouse, children and non-immigrant workers are excluded from that count. Remember that the underlying requirement is at least ten qualifying full-time jobs attributable to the investor, counted by a method the structure permits, and that this is proved years later rather than at subscription.