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Can an EB-5 investor help buy a business?

I am seeking capital to purchase a successful business whose owner is retiring and looking for a buyer. The asking price is $5 million and the business cash flows are about $1.3 million annually. There is lots of room for growth and nationwide expansion. I can finance a large portion but would like to bring in an investor for the remainder. How could this situation qualify as a direct EB-5 investment?

Answers

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    Yes, it can be done. Advisably, you need to work with an EB-5 attorney who can help assemble essential professionals in putting together a business plan to ensure your idea meets the requirements for EB-5.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    EB-5 investment into an existing business must be carefully planned for to ensure all requirements are met, such as investment in troubled business or the 40 percent expansion rule. Consult an experienced EB-5 immigration attorney to discuss.

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    It is problematic to use the acquisition of an existing business as a vehicle for an EB-5 investment.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    It is very difficult to use EB-5 funds to buy an existing business. The government wants to see new jobs created, so unless this is a troubled business or there will be at least 10 new jobs created and the 40 percent rule satisfied, this will not work. The 40 percent increase is either in the net worth or in the number of employees, so that the new net worth, or number of employees, amounts to at least 140 percent of the pre-expansion net worth or number of employees.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    Yes, this could qualify as an EB-5 investment as long as the investor can show the requisite minimum capital investment ($500,000 if the business is located in a targeted employment area, or $1 million if not), creation of at least 10 full-time jobs, lawful source of funds, etc.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    It should work fine if you can show the creation of 10 jobs per EB-5 investor.

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    Belma Chinchoy

    Immigration Attorney
    Answered on

    Yes, especially as it pertains to expansion. It needs to be planned for carefully.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    With the right setup and the creation of 10 new jobs it's possible. Contact an immigration attorney!

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    Charles Foster

    Immigration Attorney
    Answered on

    Yes, an EB-5 investor could invest the minimum required investment of $1 million or, if located in a targeted employment area (TEA), at least $500,000 or more depending upon the investor's desire to invest more capital provided that as a result of the acquisition, one can establish that at least 10 new jobs were created for U.S. workers. Based upon the amount of the investment, your investor would normally acquire a limited partnership interest in the entity acquiring the business in question.

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