Full Video Transcript
Introduction
With the collapse of Silicon Valley Bank, USCIS was prepared to start denying green card applications. A critical requirement for startups sponsoring executives for green cards is proving the ability to pay a substantial salary—$178,000 in this case. This startup faced significant challenges. Their income was low, and much of their funds were tied up, but we found creative ways to demonstrate their ability to pay. Here’s how we tackled this complex case and won approval.
Speaker Introduction
Hi everyone, my name is Joseph Tsang, Managing Partner at Tsang & Associates, where we solve legal problems with creative solutions. The legal issue here is: how can a company prove it has sufficient funds to meet salary requirements, especially amidst the fallout of the Silicon Valley Bank collapse?
Case Context
For an EB-1C classification, an executive must have:
- A valid job offer.
- Proof that the company has the ability to pay the offered wage from the priority date until lawful permanent residency is obtained.
This proof extends beyond the present and requires demonstrating financial stability for the next one to two years, covering the entire green card process. This includes priority dates, adjustment of status, interviews, and background checks.
Our Approach
We gathered extensive documentation to prove the company’s ability to pay:
- Annual reports for 2021 and 2022.
- Audited financial statements.
- Federal and individual income tax returns.
- Free cash flow and other financial analyses.
- Financial projections showing positive growth.
- Evidence of funding, investments, and equity.
- Project proposals highlighting increased revenue potential.
Although the client wasn’t being paid $178,000 yet, USCIS required evidence that the company could pay this salary in the future. The challenge was that the startup’s income was modest, and much of its money was locked away.
Key Arguments
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Leveraging Assets
- We emphasized the company’s significant assets, working with a CPA to create a detailed analysis.
- These assets could be used to borrow funds, demonstrating financial flexibility.
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Network Strength
- Highlighted the company’s position within a larger network of companies and its rapid growth.
- Provided a detailed business plan covering past achievements and future potential.
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Consolidated Evidence
- Submitted a concise two-page attorney brief with clear tables and four key exhibits.
- Referenced the original EB-1C application to streamline the response.
Outcome
Despite the complexities, the case was approved. This was achieved through collaboration across multiple departments and meticulous preparation. The simplicity of our response belied the significant effort behind it.
Reflections
The collapse of Silicon Valley Bank disrupted industries across California, yet immigration law remained unchanged. What makes immigration law special is its flexibility—it’s adjudicated by people. The facts, timing, and strategy matter. By understanding the law, our clients, and the world’s changing dynamics, we can craft successful arguments even in seemingly impossible cases.
Closing
If you have any questions or need assistance with your immigration case, feel free to reach out. We’d love to help. Take care!
Our client, an executive at a promising startup, faced a formidable challenge. The recent collapse of Silicon Valley Bank had left USCIS skeptical about the financial stability of startups, making it even more difficult to prove the company’s ability to pay our client’s substantial salary of $178,000. After submitting the application, we received an RFE for ability to pay. Despite these challenges, we were determined to prove that this startup could meet the financial requirements necessary for the EB-1C visa.
Financial Stability In Question: An RFE For Ability To Pay
What is ability to pay? To qualify for EB-1C classification, a company must demonstrate the ability to pay the executive’s salary from the priority date until the beneficiary obtains lawful permanent residency. This meant that this startup needed to show not just current financial stability but also projected stability over the coming years.
Our Strategic Approach To Overcoming The RFE For Ability To Pay
We approached this challenge of overcomeing the RFE for the ability to pay by meticulously compiling and presenting comprehensive evidence of the startup’s financial health and future potential. We submitted:
- Annual Reports and Financial Statements: Provided 2021 and 2022 annual reports and audited financial statements.
- Tax Documents: Federal and individual income tax returns.
- Financial Analysis: Conducted analysis based on recent financial statements and cash flow.
- Future Projections: Presented financial projections and positive sales outlook.
- Additional Funding: Showed documentation of additional funding, investments, and equity.
- Asset Valuation: Highlighted substantial assets to ensure ability to pay salary.
Overcoming the Hurdles
Despite the startup’s impressive growth and potential, the company’s income was not yet sufficient to meet the salary requirement on paper. USCIS was questioning this when the sent the RFE for ability to pay. To overcome this, we argued that the company’s substantial assets and its network of financial support provided a strong foundation for future growth and stability.
Working closely with a CPA, we compiled a detailed analysis and report of the company’s assets. We highlighted that these assets could be used to secure loans if necessary, ensuring that the company could meet its payroll obligations when the time came to pay their employees and this client in particular.
A Simple Yet Powerful Response To The RFE For Ability To Pay
Our response to the USCIS Request for Evidence (RFE) was concise, but powerful. The attorney brief was just two pages long, clearly outlining the company’s ability to pay. Along with this, we submitted four to five key exhibits, supported by references to the extensive documentation provided in the original EB-1C application.
The simplicity of our response belied the significant effort and collaboration that went into its preparation. Multiple departments and professionals worked together to gather and present the best possible evidence in a streamlined and effective manner.
The Outcome Of This EB-1C Case After The RFE For Ability To Pay
Our thorough and strategic approach paid off. We successfully responded to the RFE for ability to pay and the case was approved, and our client successfully secured his EB-1C visa. The entire process, from addressing the financial uncertainties to responding to the RFE, demonstrated the importance of detailed preparation and clear, concise communication.
If you need assistance with an RFE for ability to pay, an EB-1C visa application, or another immigration situation, contact us for a consultation. We’d love to talk with you.