+1-800-997-1228
Questions & Answers

What does EB-5 consider a new business?

I am an investor and I recently purchased a restaurant that was established in 1985. The restaurant was closed down before I bought it, and all of its employees were discharged. I have recently re-opened the restaurant under a new corporation, but with the same DBA. I have also re-hired many of the old employees that were previously discharged. This is in a non-regional center area. First, for purposes of EB-5, is this restaurant now considered a new business created after 11/29/1990? Second, since I hired back many of the old employees, will they or will they not count as new hires for job creation purposes? Thanks so much.

Answers

  • Avatar

    Reza Rahbaran

    Immigration Attorney
    Answered on

    Based on the facts set forth, the restaurant qualifies as a new business for USCIS purposes. As for the employees, USICS is interested in the hiring of 10 U.S citizens, LPR, asylees or refugee employees.

  • Avatar

    Julia Roussinova

    Immigration Attorney
    Answered on

    It appears the reopened business under a new corporate structure should qualify for EB-5 purposes. However, you should consult an immigration attorney to discuss your specific case and review your documentation. Please do not hesitate to contact our office should you need further assistance.

  • Avatar

    Shahzad Q Qadri

    RC Creator
    Answered on

    More likely than not this will qualify as a new business, but you will have to be careful in how the deal is structured. Enough time has lapsed that the rehiring of old employees should not be an issue.

  • Avatar

    Roberto Ortiz

    Immigration Attorney
    Answered on

    In order to properly advice you, I would have to look at the documentation from your case to determine if your business would qualify as a new commercial enterprise. There are certain nuances in the law that I would have to review with the facts of your case. Please contact me to set up an appointment. Thank you.

  • Avatar

    Philip H Teplen

    Immigration Attorney
    Answered on

    It absolutely sounds like a qualifying new business. I will be happy to discuss details.

  • Avatar

    Ed Beshara

    Immigration Attorney
    Answered on

    Under the circumstances you stated you have established a New Commercial enterprise for EB-5 purposes.

  • Avatar

    Rachel Lew

    Immigration Attorney
    Answered on

    It appears that your business qualifies under option (2) of Title 8 Code of Federal Regulations Section 204.6(h). However, You should have had prepared a business plan that is compliant with the EB-5 requirements and contains projected income for the next few years, and planned number and titles of the employees. The current trend in the USCIS adjudication is for your business to create new jobs, not retention of old hires.

  • Avatar

    BoBi Ahn

    Immigration Attorney
    Answered on

    Yes, it would qualify as a new business as long as the business has closed down and you are starting it as a new business with a new name, otherwise you may qualify the investment as an investment in a troubled business. Your hiring of some of the old employees from the old business would count towards the job creation requirement as well. It is the creation of the 10 requisite jobs that the USCIS is interested in, not who you hire as long as they are U.S. Citizens and or Lawful Permanent Residents in the U.S. Hope the information is helpful.

  • Avatar

    Stephen Berman

    Immigration Attorney
    Answered on

    It should be considered new if the place was out of business and you started a new company. It should also be considered new hires if these people were actually out of work for a period of time. Of course there is no way to predict 100% how USCIS will treat it.

  • Avatar

    Jinhee Wilde

    Immigration Attorney
    Answered on

    If the restaurant has been closed and you have/will reopen under a new corporation, then the business is a new business and qualify under EB-5.

  • Avatar

    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    This will be hard to qualify as a new commercial enterprise. Maybe it was a troubled business that lost 20 percent of net worth in the last 12 or 24 months, if so, let us know.

Add your comment

Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook name, photo & other personal information you make public on Facebook will appear with your comment.