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Do all EB-5 investors have to invest in the same entity?

I would like to develop a parcel of land in Torrance into a shopping center but Torrance is not in TEA. Can I get multiple investor for my development? If yes, does each one of them need to be in their own individual entity to hire the required 10 employees or I can put them all in one company as director? Say if I get $5 million from 5 different investors for EB5, how does that work?

Answers

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    Roberto Ortiz

    Immigration Attorney
    Answered on

    You can have all of the investors in one company, however all of them have to be able to have managerial responsibilities and you have to create 10 full time direct jobs for each investor.

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    You may pool all the investors into a single enterprise and create at least 50 full time jobs.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    EB-5 investors can be pooled into a single commercial enterprise as long as EB-5 program requirements are met. The requirements will be to create at least 50 full-time jobs directly and the minimum investment amount per investor will be $1M if not in TEA.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    They can be either in their own entities or in one company (pooled together), as long as the other EB-5 requirements are met. If the location where the jobs will be created is not in a TEA, then the required capital investment is $1 million. If you get $5 million from 5 investors, then you will need to create at least 50 full-time jobs directly, since the project is not part of a regional center. If in one entity, all 50 employees should be employed by the entity. If multiple entities, then each investor''s new commercial enterprise must show creation of at least 10 full-time direct jobs.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    You can get multiple investors within the same entity. The requisite will be that you will have to create 10 jobs per investor. Provided that you can create the requisite 50 jobs there should be no issues.

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    Mahsa Aliaskari

    Immigration Attorney
    Answered on

    You can pool EB-5 funds from multiple investors into one project. If this is being done through direct investment and not under a Regional Center designation, you will need to create 10 direct full time (i.e. W-2) jobs per investor.

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    Neville M Leslie

    Immigration Attorney
    Answered on

    For every investor, 10 jobs must be created.

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    Mark Ivener

    Immigration Attorney
    Answered on

    Yes. Investors can invest in one company.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    You could pool several investors into one project via limited partnership and they could hold policy making positions as members of the board. Since your project is not in a TEA, all investment must be $1 million.

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    Echo Meisheng King

    Immigration Attorney
    Answered on

    For immigrant investors who are not associated with a regional center, the capital may be deployed into a portfolio of businesses, as long as all capital is invested through a single commercial enterprise and all jobs are created directly within that commercial enterprise or through the portfolio of businesses that received the EB-5 capital through that commercial enterprise.

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    Ali Farahmand

    Immigration Attorney
    Answered on

    The answer to your question is very complicated, since it involves multiple parts and issues. First of all, in order for your company or project to be able to elicit investors under the EB5 Program, you must apply to get certified as a Regional Center from the Dept. of Homeland Security. This process is currently taking between 8 months to 15 months and it will involve a substantial amount of expenses. If you are able to get your project certified within a TEA area; then you would be able to attract investors at $500,000 each; if not, then each investor must invest a $1,000,000 and you must be able to show the job creation of 10 jobs, direct or indirectly, for each investor as outlined within your business plan. All of your project''s requirements must be clearly outlined within your business plan, including, the investor''s exit strategy down the road once they have obtained their permanent green cards as well. Without the actual Regional Center Certification; then your only option would be Stand Alone EB5''s, which will require a $1,000,000 minimum investment and must be processed separately, since each investor must be able to create the 10 jobs directly and must have controlling interest in the company or business that they have created. It will be very difficult to pool various investors to accomplish what you are asking. If you are interested in pursuing this idea, I urge you to speak with an attorney with experience in this field since there are many technical issues that must be dealt with in advance before moving forward.

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    Philip H Teplen

    Immigration Attorney
    Answered on

    They certainly can all invest in one entity but the job creation must ultimately be 10 per investor. I will be happy to discuss in detail.

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    Osvaldo F Torres

    RC Creator
    Answered on

    Yes, it would be possible to structure the transaction. Usually, one would form a company and make an offering of securities to the EB-5 investors. The funds would be pooled and would be used to create EB-5 jobs. Because it would not be in a TEA, the minimum investment amount would be, as you know, $1 million dollars. I am not sure if you have explored having a regional center sponsor the project. The benefit of a Regional Center is that indirect or imputed jobs may be counted toward the 10 job count requirement if an economic study indicates that the expenditure of investor funds would create such jobs. In other words, within a Regional Center one is not limited to direct jobs (actual headcount), but rather the number of jobs that the economic report indicates would be created by applying various econometric factors based on the expenditure of the invested funds. Should you have any further questions or if I may be of assistance, kindly let me know.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    If Torrance is not in a TEA, then each investor would need to put $1 million dollars into the commercial enterprise. Depending on how you describe the commercial enterprise and your business plan, it is that entity in which the investment must be made and 10 direct jobs would need to be created by that enterprise. There are various corporate structures that will work but depending on how much development guidance you want or need from the investors remember they must develop and direct the enterprise the usual scenario is a limited partnership of some type.

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    Ed Beshara

    Immigration Attorney
    Answered on

    The EB-5 investors have to invest in one new commercial enterprise.

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    Karen Weinstock

    Immigration Attorney
    Answered on

    You can have all the funds invested in one entity but you will have to create 10 jobs for each investor so 5 investors would be 50 jobs.

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