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What business ownership percentage is needed to qualify for EB-5?

Let's say an EB-5 investor does a full series A investment and receives 25 percent stock. Will they qualify for the EB-5 visa? What minimum percentage of the business does an investor need to own to qualify for EB-5?

Answers

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    The required amounts for EB-5 investment(s) need to simply be either: a) $500,000 if you are investing in rural area, or b) $1 million if you are investing in urban area. Also, whatever percentage any of these two required amounts represents in the overall business does not matter. No further classification of the investment will be recognized by the U.S. Citizenship and Immigration Services. Thus, it is advisable that whatever meaning associated with "full series A investment and "25 percent stock" should not be priority issues in your investment. Advisably, contact an EB-5 attorney to help you sort out these terms and issues before you proceed further.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    There is no minimum or maximum business ownership percentage required. The requirement is that the EB-5 investor invest the required amount of lawfully obtained capital into a new commercial enterprise that will create at least ten full-time jobs for U.S. workers.

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    Ed Beshara

    Immigration Attorney
    Answered on

    The EB-5 investor complies with EB-5 regulations and policies by owning a minority interest in an EB-5 company.

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    Oliver Huiyue Qiu

    Immigration Attorney
    Answered on

    There is no minimum percentage requirement for EB-5 investment. It is not regulated. The investor''s ownership can take up anywhere from between 0.0015 percent to 100 percent.

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    Ian E Scott

    Immigration Attorney
    Answered on

    EB-5 does not have any specific business ownership requirement. In fact, when you invest in a regional center, your ownership percentage is usually a limited partnership unit of 1 percent.

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    John J Downey

    Immigration Attorney
    Answered on

    It is not necessarily what percentage, rather the amount of the investment ($500,000 or $1 million).

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    Lynne Feldman

    Immigration Attorney
    Answered on

    There is no minimum percentage.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    There is no minimum percentage - in the regional center context, it is very small.

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    Matthew Kolodziej

    Immigration Attorney
    Answered on

    The investor only has to show the necessary job creation. If the enterprise created 40 jobs, then 25 percent would be sufficient, because 25 percent of 40 is 10.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    The EB-5 regulations are concerned more with the investment and managerial roles rather than the actual percentage of ownership. Some structures result in very small ownership percentages, but as the required managerial roles are met, the case can be approvable.

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    Clem Turner

    Securities Attorney
    Answered on

    Is this a regional center sponsored deal or a "direct" investment? In a regional center deal the only requirement is that the investor have an equity stake in the "New Commercial Enterprise." In a direct deal, the only requirement is that the investor have an equity stake in the "Job Creating Enterprise." A 25 percent equity interest should qualify, depending on the rights of the Series A Holders.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    For EB-5 immigrant investor purposes, as long as the requisite capital investment (i.e., $1 million or $500,000 (if the commercial enterprise is located in a TEA)) is made, there is not a requirement for ownership percentage - as long as the investor is either managing the day-to-day operation or has policy input as a shareholder, etc.

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    James Cai

    Immigration Attorney
    Answered on

    If you can prove by a business plan that that Series A investment can generate 10 full time jobs, yes.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    There is no minimum percentage requirement for an EB-5 investor. What is required is that the investor either be involved in the day-to-day or operational management, or in a policy setting role, such as a limited partner or a board of director.

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    Michael A Harris

    Immigration Attorney
    Answered on

    There is not an actual minimum requirement of the percentage of ownership that the investor should have. For example, some regional center partnerships provide as low as 1.0 percent unit interest to a limited partner. Other issues you will need to consider, depending on the corporate entity form of the new commercial enterprise that you gain ownership interest in, will be what role will you have in the company.

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    Yevgeny Samokhleb

    Immigration Attorney
    Answered on

    There is no minimum, and the percentage is not relevant for EB-5 purposes. What is required is a minimal capital investment of $500,000 or $1 million (depending on location), and the usage of such capital to create at least 10 jobs.

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