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What investments count towards the EB-5 investment threshold?

I plan to set up a franchised restaurant in a TEA. Will the amount invested in a purchased property in a strip mall count towards the $500,000 investment requirement?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    If your investment creates at least 10 full-time direct jobs, this should work. Please consult an immigration attorney.

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    Mahsa Aliaskari

    Immigration Attorney
    Answered on

    In a direct EB-5 investment, property purchased in connection with an active business operation may qualify. Passive investment in real estate however is not likely to qualify. If you are considering direct EB-5 investment it is important to consult with immigration and corporate counsel on the structure.

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    Yes you can, however the purchase alone will not create the 10 jobs that are required. If the purchase of the property is tied in with other expenses then this may work. Your individual case will require further review. For further information please contact Rahbaran & Associates.

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    Jeffrey E Campion

    Immigration Attorney
    Answered on

    Yes, the money invested in the mall counts. However, there is little or no job creation associated with such. Thus, you will need to show job creation through some other means.

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    Lei Jiang

    Immigration Attorney
    Answered on

    It could be if you can show that investment also creates 10 full time job. A restaurant is good if you open it (not if you purchased it).

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    If the amount used for the purchase of the property can be tied rationally and reasonably to job creation, then yes it will count as part of the qualifying investment. The problem is that the purchase of property alone does not create any employment; it looks more like passive investment, which does not work for EB-5 purposes. It seems that the USCIS is more comfortable if you rent the property and use more of the capital for "job creation purposes." If you can show a "nexus" or a reasonable connection, however, between the property purchase and the jobs being created, it will make the case stronger. This is very general information, and the success or failure of your project will depend upon the specific situation in your particular case.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    Any capital investment invested in a project will count towards the requirement, the issue you need to be wary of is whether the particular investment will in fact create sufficient jobs.

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    Rachel Lew

    Immigration Attorney
    Answered on

    For the purpose of EB-5 petitions, capital investment is defined as cash, case equivalents, equipment, inventory, and other tangible property, and debts valued at fair market value. You stated that you "plan to set up a franchised restaurant". I assume that this restaurant has not been in existence yet. Refer to Title 8 Code of Federal Regulations Section 204.6(h) for the requirements of a new commercial enterprise. If you have already purchased a real property prior to your EB-5 individual investment plan, the purchased price cannot be counted as EB-5 capital because it is a hard cost and it does not create the required jobs.

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    Boyd Campbell

    Immigration Attorney
    Answered on

    No, USCIS has taken the position that the purchase of real estate does not create jobs.

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    Roberto Ortiz

    Immigration Attorney
    Answered on

    Yes, the amount invested towards the purchase of property will count. The most important requirement is that with your investment you create 10 full time jobs.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    The business plan will determine how the commercial enterprise is defined and where the ten jobs will come from. Land purchase can count but land alone will not generate the necessary jobs.

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    Philip H Teplen

    Immigration Attorney
    Answered on

    It certainly can, depending upon how the purchase is structured. I normally separate the realty ownership from the operating company but it is possible with a holding entity or suficient insurance.

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    Clem Turner

    Securities Attorney
    Answered on

    This does seem like an acceptable use of funds under the EB-5 Program (assuming you will be operating the franchise and not leasing it to a tenant), however you should speak to an attorney knowledgeable in EB5 regarding your specific situation.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    USCIS has opined that purchase of a real property does not count for EB-5 investment. However, depending on the circumstances of the purchase and if the restaurant you purchased and operated creates 10+ full-time, permanent jobs, I think we could make a good argument that totality of the investment is EB-5 approvable.

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    Ed Beshara

    Immigration Attorney
    Answered on

    In a direct EB-5 investment in which your goal is to become an equity investor and take an active role in the management of your U.S. business, then the purchase of the property in the mall can count towards the investment requirement. In a direct EB-5 there has to be the hiring of 10 direct full time employees per EB-5 investor.

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