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What type of partners can a direct EB-5 business have?

If I start a new business or take over an existing business (in a TEA), and if the business requires a capital investment of more than $500,000, will I be able to take partners (either local or international, who are not wanting to apply for EB-5) to bring in the additional capital over and above my $500,000 investment? If yes, do I need to be an equal or major partner in the business or is even being a minor partner acceptable for the purpose of my EB-5 visa?

Answers

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    Ed Beshara

    Immigration Attorney
    Answered on

    In a direct EB-5 project, the EB-5 investor can be an equity owner (majority or minor) of the new commercial enterprise/job creating entity. As a result, other non-EB-5 investors can become equity owners in the new commercial enterprise/ job creating entity, and these investors may own shares with various percentages.

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    John J Downey

    Immigration Attorney
    Answered on

    Yes, you may have other investors and all the jobs created may be credited to you as an EB-5 investor. Your arrangements as far as percentages go are up to you and your associates; you have to have an active participation in the entity, which could be satisfied as a limited partner for example.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    No problem taking partners and no problem if it is a minority interest.

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    Ian E Scott

    Immigration Attorney
    Answered on

    You can bring in partners from the United States and internationally. For most regional center investments, EB-5 applicants own a fractional interest in the company so there is no set ownership percentage.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Yes, non-EB-5 funds can be used as well as EB-5 funds, but job creation is calculated based on the EB-5 investment itself. The EB-5 investor will still be required to have an active management role in the business, but no specific ownership percentage is required.

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