+1-800-997-1228
Questions & Answers

How is EB-5 job creation calculated for an existing business?

I am planning to purchase an existing running business to obtain a visa via the direct EB-5 route. Do I need to maintain employment of 10 workers or do I need to create additional employment for 10 workers? Thank you for your help!

Answers

  • Avatar

    Reza Rahbaran

    Immigration Attorney
    Answered on

    If you are maintaining 10 jobs, the business must qualify as a troubled business for USCIS purposes. Otherwise, your investment will need to create an additional 10 new jobs.

  • Avatar

    Roberto Ortiz

    Immigration Attorney
    Answered on

    If you are purchasing an existing business, you would need to create 10 additional direct full time employees unless the business you are purchasing is a troubled business. A troubled business is one whose net loss for 1 or 2 years exceeds 20% of net worth. If you have any other questions, please do not hesitate to contact me.

  • Avatar

    Lei Jiang

    Immigration Attorney
    Answered on

    You need to create an additional 10 jobs.

  • Avatar

    Shahzad Q Qadri

    RC Creator
    Answered on

    Your investment must create an additional 10 jobs, unless you are investing in a troubled business.

  • Avatar

    Jeffrey E Campion

    Immigration Attorney
    Answered on

    Unless it is a troubled business, you would need to create 10 new jobs.

  • Avatar

    Ed Beshara

    Immigration Attorney
    Answered on

    If you are investing in an existing troubled business then existing jobs may be maintained to meet the job creation requirements. However, if you are investing in an existing business then you will have to show how new additional jobs are created.

  • Avatar

    Michael A Harris

    Immigration Attorney
    Answered on

    Whether you can maintain the current amount of employees will depend on whether the enterprise is a Troubled Business. If it is, then you will have to maintain at least 10 jobs per investor. There are also various factors such as what year your business was established. This is a critical consideration when seeking to buy an existing business.

  • Avatar

    Jinhee Wilde

    Immigration Attorney
    Answered on

    You need to show either you created an additional 10 jobs or maintained 10 jobs that otherwise would have been lost if you did not invest. Thus, if the business is doing well by you purchasing it, you need to think about expanding that business so that you could add 10 more jobs.

  • Avatar

    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    If the business qualifies as a ''troubled business,'' then you can get credit for maintaining the pre-investment employment level (at least 10 jobs). If the business is not a troubled business, then you need to create 10 new jobs. Also, if the business was formed prior to 11/29/1990, you will have to restructure or expand the business so that a new commercial enterprise results. You should consult with an experienced EB-5 immigration attorney for advice in this matter.

  • Avatar

    Rohit Kapuria

    Immigration Attorney
    Answered on

    If the existing business already has 10 employees, then unfortunately, USCIS will only credit the net job creation, i.e., the additional jobs you create via your investment into the business. Now if you are making an investment into a statutorily defined troubled business enterprise (in business for at least two years and has had a loss during the last year or two of at least 20% of its net worth), then the criteria would largely be focused on preservation of the existing ten jobs in lieu of actual job creation. The preservation of jobs must be, however, of at least 10 jobs.

  • Avatar

    Ying Lu

    Immigration Attorney
    Answered on

    It all depends on whether the business you plan to purchase is a troubled business or not. If it is a troubled business, you need to preserve 10 jobs. If it is not a troubled business, you need to create 10 new jobs in addition to its existing staff. When you buy this business, you also need to verify if this business can meet the requirements set for a ''new'' commercial enterprise. Business founded before Nov.29, 1990 need to restructure or expand in order to become a ''new'' commercial enterprise. There are onerous legal requirements for EB-5, please consult an experienced EB-5 attorney before you move forward so that you won''t waste money and time on an unqualified business.

  • Avatar

    Boyd Campbell

    Immigration Attorney
    Answered on

    The business needs to show a 40 percent expansion in net worth or number of jobs such that the new net worth or number of employees amounts to at least 140 percent of the pre-expansion net worth or number of employees.

  • Avatar

    Karen Weinstock

    Immigration Attorney
    Answered on

    You would need to create 10 additional full time jobs as an expansion.

  • Avatar

    Margo Chernysheva

    Immigration Attorney
    Answered on

    It all depends on when the business first started and how many employees it currently has. Please work with an experienced immigration attorney to put your EB-5 application together.

  • Avatar

    Jan H Brown

    Immigration Attorney
    Answered on

    You will need to increase the business workforce. Please contact me if you would like a fuller consultation.

  • Avatar

    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Generally, an EB-5 investment must result in the creation of full-time employment for 10 U.S. Citizens or Permanent Residents. If your investment is in an existing business (usually a "troubled business" as defined by USCIS), you must preserve at least 10 full time jobs. Of course, determining if the business qualifies as a troubled business and the calculation of jobs that need to be created or preserved is best done with the assistance and representation of a qualified EB-5 attorney.

  • Avatar

    Robert West

    Immigration Attorney
    Answered on

    You need to create an additional 40 percent so four more workers is the norm.

Add your comment

Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook name, photo & other personal information you make public on Facebook will appear with your comment.