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How much of the EB-5 investment must be spent on restructuring?

If someone plans to invest in an existing business, should the whole amount ($1 million) be spent strictly on restructuring or reorganizing? For example: if a business is valued at a $500,000 purchase price, can the investor buy it and spend another $500,000 for restructuring or reorganizing in order to qualify for EB-5?

Answers

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    Steffanie J Lewis

    Immigration Attorney
    Answered on

    Yes. You would be investing $1 million in an existing business. Be careful to confirm that the business is eligible and that you would be counting the ten full-time positions correctly.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    EB-5 funds must be used for the creation of jobs. Simply buying an ownership interest without showing the uses of the funds would go towards job creation may not be enough.

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    John J Downey

    Immigration Attorney
    Answered on

    Basically you may spend the money on restructuring or any other legitimate business reason. It all comes down to your creating the requisite jobs.

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    Ian E Scott

    Immigration Attorney
    Answered on

    The short answer to your question is yes, as long as the full $1 million has been invested and you create 10 full-time jobs. You should note that the investment amount is likely going to go up to $1.2 million on Dec. 11.

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