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How can one business buy another and qualify for EB-5?

I have invested $250,000 in a new restaurant in a rural area qualified TEA in one state. To complete my EB-5 investment, I want to infuse another $250,000 into the restaurant and have the restaurant company purchase an existing gas station in a TEA in another state for $250,000. Between the two, they would create 10 jobs. Theoretically, would this strategy meet EB-5 investment requirements? Would it also meet TEA requirements?

Answers

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    Ed Beshara

    Immigration Attorney
    Answered on

    An experienced EB-5 immigration attorney will be able to advise you of compliant structures for an EB-5 project. Please note that the new jobs created will have to be full-time and held by U.S. citizens or U.S. permanent residents.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    This scenario will not qualify as each business is a separate entity in different TEAs and does not appear to be in contiguous TEAs.

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    John J Downey

    Immigration Attorney
    Answered on

    Theoretically you might, but I think it might be "a bridge too far" as the old saying goes. I have found that the simpler you make your application, the better chance you have of approval. You would need to have one company, the Job Creating Entity (JCE), control both businesses. A better idea might be to expand the existing restaurant. If not physically then perhaps by adding a catering service or some other service to create the needed jobs. If the existing business could be considered a "troubled business" under the statute this might help you out with the job count.

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    Michael A Harris

    Immigration Attorney
    Answered on

    If the businesses do not have existing employees, then you could count the jobs from multiple businesses and investments. The USCIS or immigration service has provided policy that says you can utilize one new commercial enterprise as a holding company that wholly owns the subsidiaries. You then can develop a portfolio of business investments and count the job creation among all of your gas stations. To have it meet TEA requirements, we would have to determine that each business was located in a TEA area, as defined by the state government. More information is ultimately needed, and I recommend you reach out to a qualified immigration attorney who can assess these issues competently and swiftly for you.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    Although both businesses may be in a TEA, this would be two separate business entities located in two separate states. Thus, each business enterprise must comply with EB-5 requirements on investment amount and job creation.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    It would not, unless you happen to be on the border of those two states. That is not to say that a portfolio of several projects cannot be used, but they would need to be in a contiguous geographic area.

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    Robert Cornish

    Securities Attorney
    Answered on

    Unless the restaurant and gas station are one approved project in an EB-5 regional center, your investments will not work. Further, the gas station and the restaurant are separate ventures. You seem to be confusing EB-2 with EB-5.

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