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
Steffanie J Lewis
Find an EB-5 Visa Lawyer: Immigration AttorneyYes. 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.
Salvatore Picataggio
Find an EB-5 Visa Lawyer: Immigration AttorneyEB-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.
John J Downey
Find an EB-5 Visa Lawyer: Immigration AttorneyBasically you may spend the money on restructuring or any other legitimate business reason. It all comes down to your creating the requisite jobs.
Ian E Scott
Find an EB-5 Visa Lawyer: Immigration AttorneyThe 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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