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What kind of projects can receive EB-5 funding?

Is EB-5 strictly limited to commercial real estate or could a technology company request EB-5 investments? Are there any limitations on the types of projects that can receive EB-5 funding?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    Any type of lawful for-profit enterprise may qualify for EB-5 funding, assuming it will create the requisite minimum number of U.S. jobs per each EB-5 investor.

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    Debbie Klis

    Securities Attorney
    Answered on

    Any real estate or non-real estate project can receive EB-5 investments so long as the project creates jobs. There are no industries that are prohibited so long as the job creation occurs in the United States and the underlying business is a legal one. Direct investments count only "direct jobs," which means full-time 35 hours or more per week jobs (that are permanent non-seasonal). So for a direct investment for EB-5, any project that creates at least 10 direct jobs per investor, whether real estate related or not. If not real estate, it could be in any service industry, manufacturing, or other labor-intensive industry that can meet the demand of 10 direct jobs per investor. For investments into a regional center, the job creation is more flexible as it accepts direct jobs, indirect and induced jobs as well as construction jobs if construction meets or exceeds 24 months. Obviously, construction jobs are applicable only with real estate jobs. The indirect and induced jobs, however, are available in any capital-intensive business even if not real estate related such as for a business to purchase warehouse equipment, transportation equipment (i.e., trucks and trailers), laboratory equipment, grocery store refrigeration and shelving equipment and so forth. Real estate projects are particularly popular because they are "tried and true," meaning that if there is a supporting feasibility study to show demand for the project (whether hotel, retail, residential units, office space, condos, etc.) and the developers of the project are experienced, the risk of project failure is quite low. However, in contrast, to use your example of an EB-5 investment in a technology company, there is much due diligence needed to make sure that the company is not pre-revenue, meaning that it is not still in the R&D phase (research and development) or that it will use the proceeds for clinical trials of the technology is in the med-tech field. Thus, investors should make sure that the underlying business model is established and generating revenue and thus the EB-5 funds sought are for growth rather than early stage.

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    John J Downey

    Immigration Attorney
    Answered on

    I would say any lawful, for-profit project or entity will qualify under the program.

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    Marisa Casablanca

    Immigration Attorney
    Answered on

    There is no limitation on the type of company that can be used for an EB-5 application. While most investments are real estate-based because it is simpler to come up with the 10 jobs per investor, an IT company could work as well.

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    Charles Foster

    Immigration Attorney
    Answered on

    Any viable business project can receive EB-5 funding provided it meets the other requirements. It does not have to be limited to commercial real estate or technology companies. There are EB-5 regional centers with ski resort projects, almond farms and oil and gas projects, so any viable business may accept EB-5 funding provided all the other requirements are met.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    In order to be EB-5 compliant, the requisite capital investment must be made in a new commercial enterprise - no restrictions on whether the new commercial enterprise must be in real estate. The requisite job creation along with other requirements must also be met; however, there is no limitation on the types of projects as long is it is in a commercial enterprise.

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    Irina Rostova

    Immigration Attorney
    Answered on

    EB-5 funding is available to all types of projects, as long as they can demonstrate that they will create the necessary amount of U.S. jobs. Commercial real estate projects account for most of EB-5 projects because they are popular with investors. Most investors prefer very safe projects where the risk of financial loss is minimal and the job creation is assured.

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    Raymond Lahoud

    Immigration Attorney
    Answered on

    It can be any type of new business or enterprise, or even one that is existing. As long as the business is legitimate and meets the EB-5 visa program guidelines, it will work.

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    Ying Lu

    Immigration Attorney
    Answered on

    No, there is no restriction as to the type of the business as long as it is a for-profit business entity. However, be sure that the technology company can create sufficient jobs needed by the EB-5 investors.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Any type of legal, for-profit business theoretically could receive EB-5 funding. There is no statutory or regulatory limitation on the type of project that might qualify. Typically, projects that have the best chance of being financially successful while still creating the required number of full-time positions for qualifying U.S. workers are the best for EB-5 purposes.

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    Stephen Berman

    Immigration Attorney
    Answered on

    There is no limitation to what type of project can qualify.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    There are no limitations on the type of projects that can receive EB-5 funding - the key is whether the investment creates new jobs. Look at this as a job creation program. Also, there is the practical issue - investors prefer real estate projects because there is often more collateral and security for their investment.

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