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How can a startup company with no income receive EB-5 investments?

How can a startup technology company (located in Long Island), with no revenue and no income at the moment, be eligible to receive an investment from an EB-5 investor?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    EB-5 investments in a new commercial enterprise, including a startup, are allowed under the EB-5 program. Your entity must have an EB-5-compliant comprehensive business plan and documents, while meeting other complex regulatory requirements. Most EB-5 investors want to have a clear exit strategy and see some return on investment. The required minimum jobs must also be created for EB-5 investors to obtain green cards. Please contact an experienced EB-5 immigration attorney to discuss your matter.

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    John J Downey

    Immigration Attorney
    Answered on

    You are eligible, but you may find it difficult to get investors. We had this problem in Boston with MIT, Harvard, etc.

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    Ed Beshara

    Immigration Attorney
    Answered on

    Based upon EB-5 regulations and policies, EB-5 investors can invest in a new commercial enterprise and job-creating entity that is a startup. The job creating entity may need a combination of equity capital and EB-5 funding to start operations.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    They would need to develop a business plan to show how the money would be spent and how the necessary jobs would be created within two years, and then sell an investor on this scenario.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    A business that will be receiving EB-5 investments must be real and operating, but there is no USCIS requirement for revenue and income. The investment must be at risk and have the opportunity for the investor to realize a gain. Also, jobs must be created through the investment. Requirements aside, marketing a project like this may be challenging, but with the right team of professionals (lead by EB-5 immigration counsel, of course), a compliant and marketable structure can be created.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Any new commercial enterprise (formed after 11/29/1990) should be eligible to receive EB-5 investment. There is no existing revenue/income requirement in the EB-5 law or regulations. Of course, in order for the EB-5 investor to receive conditional lawful permanent resident status, there are legal and regulatory requirements that must be met. An experienced EB-5 immigration attorney can provide more detailed information specific to the situation.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    As a new enterprise you will need to show that the investment will create the requisite number of jobs. This will need to be done through a business plan.

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    Karen-Lee Pollak

    Immigration Attorney
    Answered on

    If you are looking for direct investments into your company, you would have to have an attractive investment that a foreign investor would consider and market your business to foreign clientele.

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    Aleksandr Troyb

    Immigration Attorney
    Answered on

    This is a very complex question that cannot be answered in a short message. I would advise you to speak directly with an immigration attorney about your business to determine if you are in a position to work with a potential EB-5 investor. Likewise, the attorney could guide you with respect to the documents that will be needed to proceed.

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    Michelle Zeng

    Immigration Attorney
    Answered on

    A start-up company can be a new commercial enterprise under direct investment EB-5 context. At the starting stage, the company does not need to show profit. However, you need a very strong business plan to convince the EB-5 investor and adjudicator. You need to make them believe your enterprise can create jobs. We just helped several EB-5 investors in their direct investment EB-5 applications.

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