+1-800-997-1228
Questions & Answers

How much of the business must the EB-5 investor own?

Does EB-5 apply if the foreigner investor bought a share of a currently active business in the local market? If yes, then how much should the share be? Or must the business must be 100 percent owned by the foreigner investor?

Answers

  • Avatar

    Kyle Barella

    Immigration Attorney
    Answered on

    Unlike the E-2 treaty investor visa, there is no ownership requirement to apply for an EB-5 visa. Please contact a qualified EB-5 attorney for additional assistance regarding your question(s).

  • Avatar

    Marisa Casablanca

    Immigration Attorney
    Answered on

    An investor may qualify for an EB-5 visa even if they only own a minimal limited partnership. There is no requirement that there be a majority control if the investment is in a project of a regional center.

  • Avatar

    John J Downey

    Immigration Attorney
    Answered on

    There is no percentage of the business required. The investor in many instances is a limited partner along with many other limited partners. This allows the investor to fulfill the requirement that they have an "active participation" in the project.

  • Avatar

    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    There is no legal requirement that the foreign investor own a certain percentage of the new commercial enterprise. The requirement for EB-5 investment into an existing business is that it must be "new," that is, the enterprise must have been established after Nov. 29, 1990, or that it must have been reorganized or restructured such that a new commercial enterprise has been established.

  • Avatar

    Salvatore Picataggio

    Immigration Attorney
    Answered on

    There are many ways to structure an EB-5 project and investment, which is why having an EB-5 immigration attorney leading your team of professionals is necessary.

  • Avatar

    Charles Foster

    Immigration Attorney
    Answered on

    There is no requirement that you own a majority or any particular percentage of the business. The only question is whether you made an investment of at least $1 million in a new enterprise that created at least 10 new jobs for U.S. workers. If the enterprise is located in a Targeted Economic Area (TEA), then the investment only has to be at least $500,000. Be aware that at any time Congress could raise the minimum investment amounts.

  • Avatar

    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    A business does not have to be hundred percent owned by a foreign investor. In fact, the issue is not how much percentage/size of the business that an investor bought, what matters is whether the foreign investment in question meets EB-5 requirements, such as a minimum investment of $500,000 in a TEA/rural area, the fund for the investment comes from legal source(s) and the investment must create at least 10 jobs.

  • Avatar

    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    There is no requirement the investor must own any percentage nor is then any requirement about control of the business - merely a requirement for participation. However, purchasing a percentage of a business may not meet the new job creation requirements. It is often better to start a new business, unless one can show it is a troubled business and jobs will be saved.

  • Avatar

    Debbie Klis

    Securities Attorney
    Answered on

    This is a great question, the government is very flexible on this point. So long as you receive an equity interest in the entity that is either a job creating entity or a new commercial enterprise and your investment amount is at risk during the course of the adjudication process of the green card paperwork, then it does not matter what percentage of equity you have.

  • Avatar

    Julia Roussinova

    Immigration Attorney
    Answered on

    There is no particular percentage requirement. The key component is creation of at least 10 full-time (at least 35 hours a week) permanent jobs with EB-5 funds.

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.