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What are some suggestions on direct EB-5 businesses that work?

I understand the funds must be "spent". What if the business is not capital intensive? ex. janitorial services, call center etc. How can I prove the funds are "at risk"?

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    The funds may be spent on infrastructure, payroll, marketing, lease agreements and any business overhead. These expenses should be included with detail in the project''s business plan. The funds must also be "at risk," meaning there is no guaranteed return on the investment.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    In EB-5 cases, there is no requirement that the business should be capital intensive rather the issue is that the money, either $500k or $1million, must be invested. The funds invested in any business carries the notion that the business may either succeed or fails. This is what the term that the fund "is at risk" really means. I will advise that you need to talk to professionals on this issue because, you need to avoid parsing of these terms. The legal and proper interpretations of these terms are vital to a successful investment. Lastly, plan well, understand your investment goal(s), invest wisely and get good counseling on all legal and business terms. If you feel like needing any legal assistance, please free to consult our office.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    You need to provide a business plan that shows the investment, and how its being spent i.e. you are buying a a janitorial company for $500k, that would suffice.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    The requirement is that funds be committed to the new commercial enterprise for job creation purposes. Your business plan must have a timetable for how and when the invested capital will be spent in the business, as well as a job hiring timetable with detailed information showing a connection between the expenditure of capital and job creation. You are right; some businesses/industries are more suited for job creation and thus, better for EB-5 than others. It just depends on the business plan and how it is to be executed.

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    Rachel Lew

    Immigration Attorney
    Answered on

    If the EB-5 capital is not capital expenditure intensive, the business plan should be comprehensive enough, among other things, to include the fact that due to the nature and projected size of the new commercial enterprise, the need for not fewer than ten qualifying employees will result, including approximate dates and timetable for hiring, job descriptions, organizational chart and amount of each employee''s projected annual salaries, within the next two years, and when such employees will be hired. The entire EB-5 capital should be expended on creation of jobs prior to, not be placed in the company''s reserved passive investment account at the time of the removal of condition (I-829) petition. Any reserved funds for company?s future expansion of employees should be supported with preponderance of evidence that its expansion of employee plan will not fall short at the time of I-829 petition adjudication. USCIS looks for a petitioner who places his or her money fully at risk with NO exceptions or control over any reimbursement from the EB-5 funds that were transferred to the new commercial enterprise.

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    Ed Beshara

    Immigration Attorney
    Answered on

    In regard to a direct EB-5 investment the personal funds of the investor has to be committed and used at risk. There are no redemption agreements to guarantee the return of the principal amount of the investment. The funds are used for as an example operation costs, furniture, equipment, and other essential services to form the foundation for U.S. job creation.

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    Olga Karasik

    Immigration Attorney
    Answered on

    The most important document will be your business plan. If business plan shows that the capital will be absorbed within 2 years, you will satisfy the "at risk" requirement. The funds can be spend on labor cost, as well as other operational costs. I hope it helps. If you need further assistance, please do not hesitate to contact our office.

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    Daniel P Hanlon

    Immigration Attorney
    Answered on

    Dear Madam/Sir: The funds cannot simply be sitting in a bank account and deemed "invested" in a business that does not require that amount of capital. I recommend that you consult directly with an experienced immigration attorney to obtain specific, cogent responses to all of your questions.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Those types of businesses can spend money on payroll, supplies, overhead, marketing, etc. An "at risk" investment means there is no guaranteed return of the invested funds, but that the funds will be used to start and operate the business (and, of course, create 10 jobs). Retaining qualified EB-5 counsel, like our law firm, can assist you with approvable legal and financial infrastructures.

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    Jan Pederson

    Immigration Attorney
    Answered on

    Dear EB5 prospective investor: The capital must be at risk as you know. The investment must create at least 10 full-time jobs within the 24 month conditional residence period. Thus, you will want a labor intensive business which has a chance of both immigration and financial success. We wish you the best in searching for the investment and are available to advise you regarding immigration issues as you move forward.

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