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Where am I allowed to advertise my business to EB-5 investors?

I have an existing business. It satisfies the 10 jobs requirement. I am looking to sell the business. I would like to advertise it as an opportunity for EB-5 investors to invest in. Am I allowed to advertise my business to EB-5 investors? Do SEC rules apply if I am not a regional center?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    The issue here is a business that already employs 10 full-time employees does not qualify for EB-5. A foreign EB-5 investor has to create at least 10 full-time (minimum 35 hours a week) jobs with his or her EB-5 investment funds. The only way to qualify a business with existing jobs is investment in a troubled business that meets certain requirements under current EB-5 laws and regulations.

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    Charles Foster

    Immigration Attorney
    Answered on

    You are describing a direct EB-5 investment. You may make your EB-5 investment opportunity at any time, but it is subject to the rules and regulations of the SEC. Typically, marketing activity is done abroad where you find foreign investors. The minimum investment is $1 million unless you have a determination that your business is located in a Targeted Economic Area by the governor of your state or his designees, which could be the mayor of your city or the head of your county. Each investment must create 10 new jobs. There may be a question as to whether or not your existing jobs will count. You should consult with experienced immigration counsel, preferably with a great deal of experience in representing EB-5 investors.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    As a business owner, you can sell your business to anyone. There are no restrictions to your ability to find financing, investors, or buyers that are EB-5 seeking investors.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    The biggest problem is that purchasing a business with 10 employees does not qualify for EB-5 unless it is a troubled business showing losses. The investor has to create 10 new jobs.

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