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How can an EB-5 investor spread his/her investment funds over multiple business locations and still follow the program’s requirements?

How can an investor spread the $500,000 / $1 million EB-5 investment across multiple business locations? Is the investment required to go into only one business location? Please advise!

Answers

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    It is advisable to place an EB-5 investment in one location, as the project or business in question should be contiguous. An investment spread over several locations and businesses is not likely to be accurately counted and judged to meet the EB-5 requirements. Advisably, contact an EB-5 attorney and other associated professionals in putting together a Matter of Ho compliant business plan which can give your plan a focused and accurate orientation. Thanks.

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    Irina Lust

    Immigration Attorney
    Answered on

    It is possible to invest in one holding company with multiple subsidiaries, but you need to ensure that all the other EB-5 requirements are satisfied.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    An EB-5 investment may be made in a new commercial enterprise (NCE) that owns multiple locations within the same targeted employment area (TEA) certified as TEA, either at the time of investment or the filing of an I-526 petition, whichever is earlier, if you intend to qualify for the reduced investment amount (currently $500,000). Otherwise, if you intend to invest $1 million, you need to invest in an NCE that is a holding company (parent), which owns multiple subsidiaries.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    You can invest in 1 entity which has multiple holdings, as long as the job creation vehicle and investment vehicle is properly established in accordance with the EB-5 requirements.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    If you are looking to qualify for the TEA minimum investment amount, then the branches need to be under one entity in generally the same area. If investing at the reduced amount is not an issue then, if it is one parent, multiple locations should not be an absolute obstacle and it could be structured as a viable EB-5 entity.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    To qualify for the reduced amount of $500,000, the business must be in a Targeted Employment Area (TEA) designated or certified as such by the State or local jurisdiction. Thus, it may be difficult to do this across the multiple locations unless they are all in close proximation acceptable under the TEA. Also, to qualify for the EB-5, the new business enterprise must be one entity into which your minimum of $500,000 (minimum for TEA-qualified projects) investment must be made. Having multiple entities each holding $100,000 or so investment to total $500,0000 would not work. Depending on what business you are contemplating, there may be a way to structure it successfully, however. You should work with experienced an EB-5 corporate lawyer and the business plan writer to prepare the business side documents. You should also seek out an experienced EB-5 immigration lawyer so that your petition packet can be coordinated and prepared properly for EB-5 case filing.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    It depends on how the project is defined and the geographical area indicated. It may be doable.

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