In the complex landscape of U.S. immigration, the Matter of Izummi has carved a prominent place in the EB-5 visa category. The EB-5 Immigrant Investor Program offers a pathway for foreign nationals to obtain a green card by investing capital in a new commercial enterprise. However, the Matter of Izummi has added a layer of significance to this program and underscored the importance of addressing it in your EB-5 business plan.
What Is the Matter of Izummi?
The Matter of Izummi refers to a precedent-setting decision made by the U.S. Citizenship and Immigration Services (USCIS) in 1998. The decision in Matter of Izummi clarified two critical points:
• The capital at risk must be irrevocably committed to the new commercial enterprise. This entails that the investor should have a genuine financial stake, and their investment must be at risk for the purpose of generating a return.
• If the EB-5 investor is guaranteed a return, or a rate of return, on all or a portion of their capital, then the amount of any guaranteed return is not at risk.
The Importance of Addressing the Matter of Izummi in Your EB-5 Business Plan
Understanding the nuances of the Matter of Izummi and its impact on EB-5 investments is crucial for both investors and project developers. Here's why it's essential to address it in your EB-5 business plan:
• Compliance with USCIS Standards: USCIS closely scrutinizes EB-5 applications to ensure they meet the requirements set forth in the Matter of Izummi. Failing to adhere to these standards can result in your application being denied or delayed.
• Realistic Risk Assessment: The decision also underscores the need for a genuine "at-risk" investment. Your business plan should clearly articulate how the invested capital will be put to work in the enterprise, exposing it to risks and potential returns.
• Legal Compliance: Matter of Izummi highlights the legal intricacies of EB-5 investments. Ensuring that your business plan aligns with these legal requirements is critical to a successful EB-5 application.
• Investor Confidence: By addressing Matter of Izummi in your business plan, you not only meet USCIS requirements but also instill confidence in potential investors. Demonstrating compliance with this precedent decision can attract more investors to your project.
In conclusion, Matter of Izummi holds significant importance in the EB-5 world, as it sets standards for the structure and compliance of EB-5 investments. Addressing this precedent in your EB-5 business plan is not only a legal necessity but also a strategic move to build investor trust and ensure a successful EB-5 application. By clearly outlining how the limited partnership structure adheres to Matter of Izummi's criteria, you can navigate the EB-5 process with confidence and increase your chances of obtaining a green card through this program.
The information provided in this blog is intended solely for informational purposes. While we strive to offer accurate and up-to-date content, it should not be considered legal advice. Immigration laws and regulations are subject to change, and individual circumstances can vary widely. For personalized guidance and legal advice regarding your specific immigration situation, we strongly recommend consulting with a qualified immigration attorney who can provide you with tailored assistance and ensure compliance with current laws and regulations.
Visa Business Plans is led by Marco Scanu, a certified coach from the University of Miami with a globally-based practice coaching Fortune 1000 company executives, entrepreneurs, as well as professionals in four different continents. Mr. Scanu advises clients on turnaround strategies and crisis management.
Mr. Scanu received a bachelor’s degree in Business Administration (Cum Laude) from the University of Florida and an MBA in Management from Bocconi University in Milan, Italy. Mr. Scanu was also a Visiting Scholar at Michigan State University under the prestigious H. Humphrey Fellowship (Fulbright program) with a focus on Entrepreneurship, Venture Capital, and high-growth enterprises.
At present, Mr. Scanu is the managing partner and CEO at Visa Business Plans, a Miami-based boutique consulting firm providing attorneys and investors with business planning services in the areas of U.S. and Canadian immigration, SBA loans, and others.
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