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What are the requirements for managing an enterprise through EB-5?

What are the requirements for the EB-5 investor in regards to the management of the enterprise? Are there any strict conditions as to his education and experience background? Language or any other skills? If not strict/disqualifying, will an EB-5 investor's application take longer to process if he does not have certain business experience?

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    Ed Beshara

    Immigration Attorney
    Answered on

    In a direct EB-5 project that will be created by the investor, the investor will usually intend to manage the EB-5 business. They can be the primary executive such as the president or can be a vice president or higher level manager. The investor does not have to posses a bachelor's degree and may just have work experience, either as an entrepreneur or professional.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    If investment is through a project within a regional center, your role may be of a limited partner with policy formulation and voting on major business matters only under the limited partnership agreement and no direct management is required. If through a direct investment, generally day-to-day management is required unless the corporate structure allows for a limited partner or member role. No education, language, or experience are required.

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    Echo Meisheng King

    Immigration Attorney
    Answered on

    The EB-5 regulation requires an EB-5 investor to engage in the management of the enterprise either through the exercise of day-to-day management or through policy formation. In almost all of the regional center projects, the EB-5 investor's management requirement is met through participation in policy-making activities, which can be very broad. There is no requirement of a certain business or educational background, or language skills to meet this requirement.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    The management requirement can be as little as voting on policy matters, like a member of a board of directors. There is no requirement for a specific amount of business experience, and there should not be any effects on any step of the process due to the investor's business or management experience.

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    John J Downey

    Immigration Attorney
    Answered on

    According to the statute, the investor is required to have "an active participation" in the investment. When questioned many years ago as to what that meant, we received the answer that it is the same type of participation as a Limited Partner required under the Uniform Partnership Act. It was for that reason that we had investors take part in the investment as "Limited Partners."

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    BoBi Ahn

    Immigration Attorney
    Answered on

    As an EB-5 immigrant investor, you can either actively manage (i.e., day-to-day operations) the enterprise, or as a limited liability partner have a policy input role. There are no requirements/qualifications as far as education or experience background are concerned for EB-5.

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