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Can I use EB-5 investment capital to invest in a holding company?

Can I use EB-5 investor capital to invest in a holding company that purchases existing commercial real estate such as shopping malls? The holding company would outsource snow plowing, landscape, maintenance and the stores in the mall would employ as well. Would this qualify as "indirect" job creation or preservation?

Answers

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    Taher Kameli

    Immigration Attorney
    Answered on

    The answer to your question is not that easy. There is a need for more information about your plan. Please contact an attorney.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    This is a very difficult to assess without looking at the business plan, generally purchase of real estate does not create sufficient jobs.

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    Roberto Ortiz

    Immigration Attorney
    Answered on

    The type of investment that you are talking about is for a Direct EB-5, which means that you will need to employee 10 direct employees. Indirect employees cannot be used by Direct EB-5 applicants. If you have any questions, please do not hesitate to contact me. Thank you.

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    Lei Jiang

    Immigration Attorney
    Answered on

    Yes, as long as you can prove that this company fulfills the required number of jobs. Regional center can rely on economic model. If you are not a regional, then just count the jobs directly.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    EB-5 investment needs to be in active business that creates jobs. A holding company that invests in commercial real estate holdings will not qualify.

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    Yes, EB-5 funds may be invested into a holding company. However, you will only be able to count the indirect jobs created by the investment if the project you are describing is under the umbrella of a regional center. For further information please contact Rahbaran & Associates.

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    Ying Lu

    Immigration Attorney
    Answered on

    Yes. In a direct EB-5 context, the jobs created by a subsidiary of the holding company can only be counted if the holding company owns 100% of the subsidiary. If the subsidiary is not a ''troubled business'', 10 new jobs must be created. A troubled business is an enterprise that has been in existence for at least two years and has incurred a net loss during the 12- or 24-month period prior to the priority date on the immigrant investor''s Form I-526. The loss for this period must be at least 20 percent of the troubled business? net worth prior to the loss. The corporate structure will be very crucial in structuring the EB-5 investment.

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    Karen Weinstock

    Immigration Attorney
    Answered on

    Unless this is an investment in a regional center, you will have to invest in an active business not a holding company and only direct jobs would work.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    It might be possible but more information is necessary. EB-5 capital must be invested in a new commercial enterprise formed after 11/29/1990 or in a pre-existing business if restructured/reorganized or expanded. Minimum 10 full-time jobs per investor must be created in a direct EB-5 investment case. Indirect job creation is only counted in a Regional Center project EB-5 investment. Simply holding commercial real estate without the requisite job creation is unlikely to qualify under EB-5 program. Do not hesitate to contact our office should you have further questions.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    You cannot do this in a standalone, basic individual EB-5. You would need a regional center with prior USCIS approval to benefit from indirect job creation.

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    Marisa Casablanca

    Immigration Attorney
    Answered on

    Thank you for your inquiry. Individual EB5 investments get complicated when they are loan based or in a holding company. The attorney you work with has to be able to make sure that there are direct jobs. If the investment strategy is not created correctly, the case may be denied due to the jobs. We are available if you need further information.

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    Boyd Campbell

    Immigration Attorney
    Answered on

    Yes, you can use EB-5 capital to invest in a holding company.

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    Steven Anapoell

    Securities Attorney
    Answered on

    Need more facts to respond. Does not look like will work.

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    EB-5 capital can be invested in a holding company which wholly owns businesses that create jobs for U.S. workers.

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    Mona Shah

    Immigration Attorney
    Answered on

    EB-5 capital may be invested in a holding company. However, for the investment to qualify under the EB-5 program, the investment must be in a new commercial enterprise, a re-structured existing business, or an expanded business and create a minimum of 10 full time jobs held by qualifying U.S. workers. Thus, merely purchasing an existing commercial real estate such as a shopping mall is unlikely to qualify under the EB-5 program. In addition, it should be noted that indirect jobs may only be counted if the Project is managed by a Regional Center. If a stand alone Project is being contemplated, then indirect jobs may not be counted.

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    Clem Turner

    Securities Attorney
    Answered on

    EB-5 investment capital must be used for specified job creation. Without explicitly informing USCIS where the invested money would be spent (i.e. a particular shopping mall) it is doubtful that they would approve any I-526 applications. Furthermore, the job creation resulting from the tenants in the shopping mall would probably not be attributable to your investment, due to the "Tenant Occupancy" regulations currently utilized by USCIS.

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    Ed Beshara

    Immigration Attorney
    Answered on

    Under a direct investment,personal funds can be invested in a holding company.To use indirect employment creation the EB-5 project has to be under a Regional Center.

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    Denyse Sabagh

    Immigration Attorney
    Answered on

    Only Regional Centers can count indirect job creation.

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    Stephen Berman

    Immigration Attorney
    Answered on

    It sounds possible.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    The investment must be made directly into the new job creating enterprise.

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