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Could a healthcare provider raise capital through the EB-5 program?

We own two urgent care centers which, although are ''hot'' for a lot of Private Equity firms right now, would certainly be able to expand faster if we received EB-5 capital. All we keep hearing about is the ski resort in Vermont. How about another great infrastructural business, with a likely higher ROI? How can we attract direct investors or via a Regional Center, the latter seeming to be unnecessarily complicated?

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    Your first step should be to seek regional center accreditation for your business and project approval. For further information on the steps required please contact Rahbaran & Associates.

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    Clem Turner

    Securities Attorney
    Answered on

    Absolutely! My firm has represented medical facilities who have sought and obtained EB-5 funding. Any good investment, no matter the industry, will be welcome in the EB-5 markets - so long as the job creation numbers are sufficient. Whether you raise funds via a Regional Center or the so-called "direct" method, the regulations are complicated and you should retain experienced EB-5 corporate/securities counsel and immigration counsel.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Any lawful business activity might qualify under the EB-5 law. The trick is how to market your project so that the potential investors see the advantages and good points compared with other projects in the market (most are ‘cookie cutter’ deals, like commercial real estate, hotel construction, assisted living facility, etc.). Attracting good, qualified investors who are serious is the job of the marketing agency you contract with in China. There are companies here in the U.S. that work with such agencies, so maybe contact them first. The problem will be that every intermediary will want a piece of the pie. This is the issue too with using an existing regional center (‘rent-a center’). They typically charge per head anywhere from $10,000 to $50,000 per investor. Doing your own regional center is not practical or efficient (it takes at least a year and upwards of $150K to $200K to get it done right). You should look at the list of designated regional centers. See uscis.gov/eb-5centers You need to find one that covers your geographic area and your industry sector. Then, contact them and see if they want to do a deal. Good luck.

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    Mahsa Aliaskari

    Immigration Attorney
    Answered on

    Through either direct investment or Regional Center investment, any for-profit business that creates jobs may potentially take advantage of the program to raise capital for operations. An urgent care center can be a viable option, there are a number of factors to consider when you go over your options to pursue direct versus regional center investment. Just a few of those questions would include: How much money would you like to raise through this program? If not using the Regional Center option, will the business create enough jobs to support the amount of capital you want to raise? If not, then you can look at whether or not the Regional Center makes more sense. How will your project find investors under the direct program vs Regional Center? Does it make sense to find and work with an existing Regional Center? There is a lot to consider and the program is open for any business, including those in the health care industry.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    Health care provides qualify for EB-5 program. You are not required to become a regional center to attract EB-5 investors. Unless you qualify for a reduced investment of $500,000 per investor being in a targeted employment area, the required qualified investment amount per investor is $1,000,000 (or higher). The key requirement is creating at least 10 full-time jobs per investor. Do not hesitate to contact me should you have any further questions.

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    Christina L Rogers

    Securities Attorney
    Answered on

    Thank you for the question. You can receive EB5 capital for a medical facility, provided that you can generate the required number of jobs to be in the EB5 program. The regional center process is a bit more complicated, but it is much easier to get investors this way because the amount of the investment drops from $1,000,000 to $500,000. Most investors choose to go this route for the less investment. Most people go through agents to find investors for their companies. Others go through the regional center and they are usually connected to agents who find investors. You must find a regional center who is approved to work in the region that you are in and in the health care sector if you choose to go that route. Please let me know if you have any other questions.

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    Philip H Teplen

    Immigration Attorney
    Answered on

    A healthcare provider can absolutely qualify as an EB-5 provider. However, the issue is whether is will qualify as a $500,000 or $1,000,000 investment and how many employees will be created. You hear so much about the Vermont ski project because it is in a rural area, qualifies for $500,000 investment and creates many low salaried jobs. I will be happy to discuss your business model in terms of EB-5 qualification.

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    Taher Kameli

    Immigration Attorney
    Answered on

    Yes they can. It depends on the business plan.

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    Larry J Behar, Esq

    Immigration Attorney
    Answered on

    You are correct that the healthcare industry is very labor intensive. While the program in Vermont has been successful, there is nothing to prevent either a direct job creating health care enterprise with a higher ROI or work with a specific regional center prepared to support such a project. My recommendation is to start with a good business plan and a credible agent who will support a healthcare proposal. They exist.

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    Roberto Ortiz

    Immigration Attorney
    Answered on

    There are several different business that are used for EB-5 projects. You can either create a Regional Center or join an already existing Regional Center in your area that includes your type of business. The most important requirement for the EB-5 program is that with each investor 10 full-time jobs need to be created. If you have any additional questions, please do not hesitate to contact me.

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    Boyd Campbell

    Immigration Attorney
    Answered on

    Health care providers with several shifts create a lot of jobs. Perfect for EB-5. A regional center is highly recommended.

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    Lei Jiang

    Immigration Attorney
    Answered on

    Yes. There are regional centers for the similar purpose. You have to set up a regional center to be attractive to the investors.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    You do not have to receive the Regional Center designation from USCIS if you wish to pool the investment from EB-5 program. There are many different projects from infrastructure, hotel, hospital to restaurants that are available through the regional centers. For the list of available regional centers and their project, please see the USCIS website. However, the most important issue for EB-5 investment is whether the business will create the requisite number of 10, full-time, permanent jobs from those investments you pooled. Whether the business actually created the jobs promised is the only criteria in which the immigration benefits attach. If you are looking for high ROI (IRR) as the most important criteria for your search parameter, then you are focused on a wrong issue for EB-5.

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    Jeffrey E Campion

    Immigration Attorney
    Answered on

    Actually, the regional center is probably the best bet. There are a lot of regional centers with assisted living facilities and other medical facilities.

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    F Snyder Gokey

    Immigration Attorney
    Answered on

    As an attorney who practiced as a business attorney in the healthcare field for 15 years before becoming an immigration attorney, I think healthcare is largely missing a great opportunity for investment capital. Some regional centers have made investments in hospitals with EB5 money. I know it has been done in New York. The EB5 Regional Center was able to loan money for the purchase of some of the institution’s medical equipment. The Regional Center has to be structured properly to do this, which some are and some are not. I do not know how the transaction was structured, but you could contact William Gresser of the NY State Regional Center to ask. Outside of the Regional Center setting, the investors would need to be involved with the business. They might physicians setting up a practice (if they were licensed in the US). They might be able to set up a medical equipment company, and lease facilities or equipment to a medical practice. This is general information and not legal advice. This is an extremely detail driven area of the law, and outcomes depend entirely on the details.

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    Alexander Lebedinski

    Immigration Attorney
    Answered on

    A healthcare provider can raise capital through EB-5, but if the investor(s) will receive ownership interest in the healthcare legal entity, you need to confirm if the State where the provider is located allows ownership by non-healthcare professionals. In some States, all shareholders / members of a for-profit healthcare entity (a professional services corporation or professional services limited liability company) must be physicians licensed by the State. Some States also have a corporate practice of medicine doctrine which generally does not allow a business corporation to practice medicine or employ physicians, which would affect a non-physician?s ability to invest and receive ownership interest.

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    Hans Burgos

    Immigration Attorney
    Answered on

    The answer is yes. Any commercial venture may raise capital via the EB-5 program provided it meets the requirements contained in the INA.

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    Emre Ozgu

    Immigration Attorney
    Answered on

    You do not need to become a regional center like the Vermont Skii resort. Instead you can take on investors who will be on your board of directors and take part in the management of your company and would make a $1million dollar investment. The issues are: will you create 10 new jobs per investor and the investor needs to be able to source where the funds were earned.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    While the ski resorts have gotten a lot of publicity the fact remains any legitimate business can utilize EB5 funs provided it creates sufficient jobs. The urgent healthcare facility would be an ideal candidate or in fact any other business. Direct EB5 investors may complicate things as they are required to be on payroll I would recommend the RC route. Please give me a call should you have any questions.

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    Ron Klasko

    Immigration Attorney
    Answered on

    Many successful EB-5 projects have been healthcare-related hospitals, ALFs, urgent care, etc.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    Absolutely this would work and a stand-alone project is much easier. Remember you would have to create 10 jobs per investor. Unless you are located in a rural area or area of high unemployment ten each investor would have to put in $1 million or more.

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    Mark Urbanski

    Immigration Attorney
    Answered on

    Absolutely. You can raise capital through the EB-5 program for a healthcare provider (hospital, assisted living center, etc.) and there are several regional centers currently raising funds for such projects.? Of course you will need to determine how many jobs will be created to estimate the number of potential EB-5 investors you can absorb, and whether or not your facility will be located within a TEA for purposes of determining if you can benefit from forming a regional center.

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    Neville M Leslie

    Immigration Attorney
    Answered on

    Yes, your urgent care centers could qualify for the EB-5 visa program.

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    Stephen Berman

    Immigration Attorney
    Answered on

    If you invested $1 million and created 10 new jobs, then it would be fine.

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    Steven Anapoell

    Securities Attorney
    Answered on

    Yes. Healthcare is well received. The key is full-time job creation. We are currently working on a multiplicity of healthcare projects, including senior living facilities.

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