What are the EB-5 requirements for expanding an existing business?

If your invested funds are being used to "expand an existing business" then you must show that there is an "expansion of an existing business through the investment of the required amount ($1 million or $500,000 in TEA), so that a substantial change in the net worth or number of employees results from the investment of capital. Substantial change means a 40 percent increase either in the net worth, or in the number of employees, so that the new net worth, or number of employees amounts to at least 140 percent of the pre-expansion net worth or number of employees. 8 CFR 204.6 (h)

An experienced EB-5 immigration attorney will be able to advise you on how many new full-time jobs need to be created to comply with the EB-5 requirements. Please note that the new employees must be either U.S. citizens or U.S. permanent residents.

You sound like you have done your research regarding existing businesses and EB-5, which will be appreciated by any EB-5 attorney you would retain in the future! Yes, you may need to change the business structure to make this a viable EB-5 option.

I think you are OK. The net worth increase that you speak of is in regard to a "troubled business" and it does not appear that his business is in that category. If you invest the $1 million and this creates 10 jobs, you should be fine.

Yes, that is fine, since it is still a new commercial enterprise as defined by the statute. The 40 percent only applies for older businesses.

Set up a new company.