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How can EB-5 serve asset light companies?

Are there examples of asset light service companies that have been funded by the EB-5 program? It looks like most are development projects that are perceived to be a safer for the investor. I have an asset light healthcare service company and am wondering if the EB-5 program would be an option to raise capital to fuel growth plans.

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    Your project may qualify for EB-5 funding if it meets all EB-5 requirements. It is important to consult an expert to determine if your project is marketable to foreign investors. You may also team up with an existing regional center that is willing to accept your project and therefore receive EB-5 funds. Please consult an experienced EB-5 attorney to determine if your project is EB-5 compliant.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    You are right that the issue may be the EB-5 marketplace and what is considered a "safe" investment. Asset light companies may have a harder time convincing investors of a feasible exit strategy. On the other hand, all EB-5 investments must be at risk and the invested funds must go toward job creation purposes. You need to determine whether or not your company should work with an existing regional center or if a direct investment better suits your needs, and if EB-5 is right for you, what kind of investment model makes the most sense. An experienced EB-5 immigration attorney, such as myself, would be able to advise you on such matters or recommend other business planning professionals to assist you.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    In terms of marketability, investors are often concerned with job creation and the exit strategy for their investment. From an immigration compliance standpoint, the project will have to create the required amount of jobs, among other requirements, that should not be an issue for a healthcare company. Retaining experienced EB-5 counsel, like the attorneys at our law firm, can help your project be compliant and marketable.

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    Philip H Teplen

    Immigration Attorney
    Answered on

    It is an option if it can produce ten full time jobs and offer sufficient security to an investor. I will be glad to discuss.

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    James W Childs, Jr

    Immigration Attorney
    Answered on

    As you are probably aware, this is more of a marketability question than a legal question. I don''t think you would have much interest from EB-5 investors to an asset light service business, unless there is a demonstrable patient referral stream through an affiliation or other source and a known reimbursement pattern. Affiliations with hospitals or medical centers are positives.

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    Ed Beshara

    Immigration Attorney
    Answered on

    The asset light company can be EB-5 compliant and as long it is marketable to investors it can be a successful EB-5 project. The investors and/ or investor sourcing group will do their die diligence as to the financial and business viability of the US business and if strong the investors will invest in this project.

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