Not necessarily. The engagement requirement can be met through day-to-day managerial control or policy formulation under the applicable rules. Assess the actual rights and role.
Read the participation evidence before accepting a passive label
Identify the governing documents and the investor’s responsibilities rather than assuming every entity interest has identical rights. The current general thresholds are US$1,050,000 or a qualifying US$800,000, with adjustment beginning January 1, 2027; lawful at-risk capital and at least ten qualifying permanent full-time jobs also remain required. A participation provision does not replace those investment conditions.
The standard amount is one million and fifty thousand United States dollars, or eight hundred thousand where the enterprise is principally doing business in a qualifying targeted employment area or is an infrastructure project. The reduced figure exists for particular kinds of projects, and whether a project qualifies is a question of evidence about the area or the infrastructure involved, tested against the statutory criteria rather than accepted from an offering document. A dividend is a lawful source of funds when the retained earnings behind it are documented with financial statements, tax filings and the resolution declaring it, and the payment can be traced into the investor's account and on to the enterprise.
- USCIS — EB-5 investor program
- USCIS — business and investment visa overview
- USCIS — Child Status Protection Act
- Department of State — Visa Bulletin
- USCIS — fee schedule
- EB-5 engagement through managerial control or policy formulation, 8 CFR 204.6(j)(5)
- Current EB5 capital statute; not obsolete regulatory thresholds