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Can I invest in multiple EB-5 projects?

Is there a way to invest the USD $500k to qualify for a EB-5 visa by investing USD $100k in 5 different qualified projects? Is there such kind of diversification of risk possibility?

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    In a direct investment, it could be possible to disburse your total amount invested within a holding company that wholly owns all subsidiaries if each subsidiary is engaged in a for-profit activity formed for the ongoing conduct of a lawful business.

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    Martin J Lawler

    Immigration Attorney
    Answered on

    No, sorry. Some regional centers have multiple projects and are designed for splitting your investment. We have set up such a regional center for a client in Silicon Valley, but the RC is not yet approved.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Some EB-5 investments have a portfolio of job creating entities that will receive loans or equity investments from the new commercial enterprise (which is the actual entity into which you would invest). Regardless, 10 jobs must be created per investment and you must otherwise qualify and comply with EB-5 rules to obtain an approval.

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    Ed Beshara

    Immigration Attorney
    Answered on

    Yes. You may diversify your investment in a number of projects, either in a direct or EB-5 Regional Center project. It is advisable to retain the services of an experienced EB-5 attorney to advise of the EB-5 compliant infrastructures to allow the type of investment you are contemplating

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    Jian X Kang

    Immigration Attorney
    Answered on

    That is a very good question. But unfortunately, the U.S. immigration law has not provided for such a scenario. Also, it will be very impractical for all parties to manage such a scenario, including the USCIS with respect to determining the number of jobs each of your $100,000 creates. If you have any questions or concerns about this matter, please feel free to contact me.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    The short answer is no. However, if you are planning a direct investment then you may be able to establish a holding company and utilize that methodology.

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    Ying Lu

    Immigration Attorney
    Answered on

    You can do that. The only problem is how to properly count the jobs newly created in those five projects. The jobs must be created within a New Commercial Enterprise (NCE). Be sure to consult an experienced EB-5 attorney to help you structure the EB-5 investment.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    No. You must invest in one project located in a TEA in order to qualify for $500,000 investment threshold and that one business must create 10+ permanent full-time jobs. Please note that EB-5 program is $1 million investment, except when the business is located in a rural area or TEA. Also, keep in mind that EB-5 program was design to put investment funds at risk to spur economic growth in an area, which must be documented by showing jobs created. There is nothing that requires safe investment through diversification as this program was not designed for investment program but rather an immigration program.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    No, you cannot invest $100 in 5 different projects purposely to qualify for EB-5 visa. Better advice is that you should all your $500K to one project. EB-5 rule is $500k per project

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    Margo Chernysheva

    Immigration Attorney
    Answered on

    No, under the EB-5 program statutory language, investment cannot be divided between multiple companies.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Yes; you can do this only if your investment is organized into a single new commercial enterprise and its wholly-owned subsidiaries. In your case, the $500K investment would go into a single entity first and then into five wholly-owned subsidiaries. The investment must meet all of the other EB-5 requirements, such as targeted employment area, job creation, Matter of Ho compliant business plan, etc. You should have an experienced EB-5 attorney advise you on these matters.

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    Kripa Upadhyay

    Immigration Attorney
    Answered on

    No! Each qualifying investment for purposes of EB-5 must be for either $500,000 or $1,000,000; hence, you cannot hedge your bets by diversifying the portfolio for the required investment amount.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    Unfortunately no, the minimum required investment ($500k for TEA or $1Mil) must be in one commercial enterprise.

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    Rohit Kapuria

    Immigration Attorney
    Answered on

    The general financial investment standard is to have a diversified portfolio. However, in the EB-5 context, the key is to place your investment funds "at risk" in a project that will create 10 jobs (whether actual W2 workers in the direct EB-5 context or indirect and induced jobs in the regional center context). One can invest in an EB-5 pool whereby the developer could spread the funds across a few projects that cumulatively create the jobs. However, as an investor, you are restricted to investing in only one new commercial enterprise through which you become a limited partner or member.

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