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How can I invest directly into two businesses through EB-5?

I would like to start-up business in the United States only with the use of my own capital, and apply for EB-5. 80 percent of the investment will be in agribusiness in a rural area, and the other 20 percent will be allocated to a complement business in an urban area. Is it possible to divide an EB-5 direct investment between two businesses? What would be the minimum investment amount if both an urban and a rural area are involved?

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    Julia Roussinova

    Immigration Attorney
    Answered on

    This may be structured with the assistance of competent EB-5 and corporate counsel via a holding company - subsidiary structure. Your direct investment either has to be within a targeted employment area or rural area, or within a regional center to qualify for a reduced $500,000 investment threshold. If not within a TEA/rural area or regional center, then the minimum investment threshold is $1 million.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    It might be possible to structure your investment in such a way that both businesses would be included in one new commercial enterprise (NCE). You should consult with an experienced EB-5 immigration attorney who can advise on the detailed requirements for your situation. As for the minimum investment amount, if the NCE is principally doing business in a targeted employment area (TEA), it is $500,000. If the NCE is not principally doing business in a TEA, then EB-5 requires a $1,000,000 investment.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    If the businesses will not be too far apart, this can work but will need to be covered in the business plan. It would be helpful if there was some connection between the two businesses other than your involvement.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    You may be able to invest into a new commercial enterprise that wholly-owns the two development projects, but a complex structure such as this requires the assistance of a qualified and experienced EB-5 attorney.

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    John J Downey

    Immigration Attorney
    Answered on

    You need an attorney familiar with corporate structure. Your agribusiness is primary. If the second business is closely related, then just add it as a part of the main agribusiness. Seek competent counsel.

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    Ed Beshara

    Immigration Attorney
    Answered on

    If the personal investment is in a targeted employment area, then the investment will be $500,000. In a direct EB-5 investment, you may invest your funds in a holding company. The holding company will be a 100 percent owner of two subsidiaries. Each subsidiary can be different types of businesses and the $500,000 can be divided between the two subsidiaries, 80 percent in one and 20 percent in the other.

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    Robert Cornish

    Securities Attorney
    Answered on

    This is a difficult question to answer as it is unclear if you are investing in businesses that may be encompassed by a regional center. If so, both businesses if they are within the parameters of a regional center could be permissible investments so long as they are approved by USCIS and under the aegis of that regional center. If you are not dealing with a regional center, the analysis is likely more complicated.

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