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Can investments made in multiple projects qualify for the EB-5 Visa Program?

An overseas investor is planning to invest $1 million to set up a real estate investment company in Southern California and create 10 direct new jobs. Will this meet the requirement of the EB-5 program? What if the investor invests the capital into multiple businesses, like puts money into a restaurant and a tour service company at the same time?

Answers

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    The investment must be made to one business entity and the job created must be within that entity. I will need to see the business plan to opine further.

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    Ed Beshara

    Immigration Attorney
    Answered on

    We will make the Assumption that the investor intends to invest their personal funds into a direct EB5 business. That is, the investor will be investing in their own business. As stated the investor wants to disperse the investment of USD $1 M or USD$5000,000.00 ( if a TEA), into a number of different businesses. A solution could be for the investor to form a Holding company which 100% owns a number of subsidiaries .Each subsidiary is a separate business which are all ready to start business operations at the same time. Under the above circumstances the investor will invest the $1M into the Holding company and then the funds will be disbursed to the subsidiaries e.g.$500,000.00 to one tour company and $500,000.00 to the Restaurant. The required jobs can de-disbursed amongst the subsidiaries , such as the restaurant can create 7 jobs while the tour company can create 3 jobs. A real estate company can be an EB5 company. The EB5 investment funds will need to create 10 direct jobs.However the EB5 funds cannot be used for land purchases or building purchases to show job creation.Again the US policies are still in need of clarification concerning this area.

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    Denyse Sabagh

    Immigration Attorney
    Answered on

    The investment should be in the same investment and go directly to job creation.

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    Rana Jazayerli

    Immigration Attorney
    Answered on

    It is possible. The key is to set up a single entity holding company that will serve as the commercial enterprise. That said, generally the businesses associated with such an entity are all similar. e.g. a chain of restaurants, etc. Where the types of businesses are altogether different, there could be an issue. It is hard to say how USCIS will decide on this issue, though some research could be done.

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    Charles Raether

    Immigration Attorney
    Answered on

    An immigrant investor who is not associated with a regional center may deploy capital into a portfolio of businesses, so long as all capital is deployed through a single commercial enterprise and all jobs are created within that commercial enterprise. For example, in an area in which the minimum investment amount is $1,000,000, the investor can satisfy the statute if the commercial enterprise deploys $600,000 toward one business that it wholly owns, and $400,000 toward another business that it wholly owns. See 8 C.F.R. ? 204.6(e). (In this instance, the two wholly-owned businesses would have to create an aggregate of ten new jobs between them.) An investor cannot qualify, on the other hand, by investing $600,000 in one commercial enterprise and $400,000 in a separate commercial enterprise.

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    Taher Kameli

    Immigration Attorney
    Answered on

    Yes it can be qualified.

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    All investment funds must be made into a single new commercial enterprise. If that commercial enterprise creates 10 jobs, then the investment qualifies.

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