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APPLICATION ANSWERS · EB-5 FIELD GUIDE

Do payroll expenses replace the required EB-5 investment amount?

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THE DIRECT ANSWER

The case must satisfy both the qualifying investment requirement and job-creation requirements. How invested funds are actually used can be relevant, but a payroll projection does not substitute for documenting qualifying capital at the applicable amount. Avoid counting the same expenditure twice as if it creates additional investment.

Reconcile the financing and staffing budgets

Identify the source of operating funds, the contribution to the enterprise and the employment costs the business expects to incur. Fees and other charges require their own treatment. A viable payroll plan should be commercially credible as well as consistent with the immigration evidence.

First review separates qualifying capital from administrative, legal, translation, and later removal-of-conditions expenses. The records that settle each figure are current official fee information, the project documents, and a written engagement scope. Sequence budgeting across the full immigration path rather than treating the first petition as the only expense.

The mistake is allowing a promoter's total to obscure what reaches the enterprise and what pays for services. Hypothetical example: A Canadian owner of a custom-violin business receives a regional project estimate with one large total. She should request a breakdown showing capital, administration, source-document preparation, and expected later filing costs before comparing it with another project.