EB-5 Investment Program Information
Foreign investors can invest in many types of for-profit lawful business entity to satisfy the EB-5 Investment Program requirements. The structures of the business entity can be any of the following for-profit business categories:
Creating a new business:
The EB-5 program defines a ‘new’ enterprise as one that was “established after November 29, 1990.” Immigrant investors can invest the required amount of capital in a commercial enterprise that was established after November 29, 1990, provided that other criteria are met.
Restructuring or reorganizing an existing business:
An EB-5 investor can restructure an existing business, however, merely changing the legal structure or physical appearance of an enterprise will not suffice. The USCIS gives the examples of a restaurant that is converted into a nightclub or a plan that adds substantial crop production of an existing livestock farm as two examples of adequately restructured or reorganized commercial enterprises.
Expanding an existing business:
Through this avenue, an EB-5 investor must either expand the net worth of an existing business or the number of employees by 40%.
Pooling:
Multiple EB-5 investors can combine their money to invest in an enterprise. All investors must invest the required amount into an enterprise and create at least 10 jobs each. All jobs created by a pooling arrangement will be distributed evenly among investors.
General Requirements for Investing in a New Commercial Enterprise
- Invest in or currently be in the process of investing at least $1,000,000. If this investment is made in a company located in a targeted employment area, the minimum investment is lowered to $500,000.
- Must provide benefit to the U.S. economy in the form of goods and/or services.
- Must create 10 full-time employment positions.
- Must be involved in the daily management of the company.
Rebuilding a Troubled Business:
The definition of a troubled business is one that has existed for a minimum of 2 years and incurred a net loss for the 12 to 24 month period. The loss must be equal to at least 20% of the business’s total net worth.
General Requirements for Investing in Troubled Businesses
- Invest $1,000,000 or $500,000.
- Maintain the number of existing employees in the troubled business at no less than the pre-investment level for a period of at least 2 years. This till requires that ten jobs must be preserved or created in any combination.
- Must be involved in the daily management of the company.
Regional Center Pilot Program:
To encourage immigration through investment and to concentrate investment in specific regions, Congress directed USCIS to set aside 3,000 visas for people who invest in a designated “Regional Center Program.” A “Regional Center” is a designation granted by USCIS on the basis of a proposal for economic growth in the particular geographic area. Approximately 90-95% of EB-5 applications submitted to USCIS fall into this category.
General Requirements
- Invest at least $1,000,000 or $500,000.
- Create 10 new full-time jobs directly or indirectly.
- A detailed description of how the investment within the specified area will create jobs directly or indirectly.
- A detailed administrative structure of the regional center which explains how it will promote more investment, assess investor projects, oversee all investment activities, and structure its own investment capital.
We are happy to provide this EB-5 Investment Information today. If you have any questions, the team here at Buda Law Group will gladly answer them. Please reach out to us to find out more or get a competitive quote on our legal immigration services.
Thank You,
John B. Buda, Esq. www.budalawgroup.net office: 310-452-1872 john.buda@budalawgroup.net 3301 Ocean Park Blvd. Suite 205 Santa Monica, CA 90405