Can my EB-5 investment be split into four separate properties?
I am an EB-5 investor interested in applying for my visa. If I make a $1 million investment, can this capital be split into four separate properties? If so, are the job creation requirements the same as other EB-5 investments?
The deal would have to be structured in a manner that would allow you to do that. However, keep in mind that you still have to create the requisite number of jobs, and generally a purchase of property does not create those jobs.
Yes, it is possible if you invest into a single new commercial enterprise that either directly owns four properties or wholly owns four different subsidiaries developing properties. The job requirement is the same - at least 10 full-time permanent jobs.
Yes; if you invest in a new commercial enterprise that owns the four separate properties, either directly or through a wholly-owned subsidiary, then you can make it work. The job creation requirements are the same: the new commercial enterprise must create at least 10 full-time jobs for qualifying U.S. workers.
Possibly, if you make one investment into a single new commercial enterprise, and that entity makes investments or loans to separate job creating entities. This "portfolio" concept can be acceptable to USCIS, provided the documentation is clear.
John J Downey
It all depends - is the investment in a regional center, are the properties located in a TEA? More info is needed.
It would be preferable to create one holding company and four subsidiaries. The money would go to the holding company and then the holding company would divide between the subsidiary companies. The 10 employees created by the investment would be employed by the holding company.
Great question. USCIS provides the following guidance: "An immigrant investor may diversify his or her total EB-5 investment across a portfolio of businesses or projects, so long as the minimum investment amount is placed in a single commercial enterprise. For immigrant investors who are not associated with a regional center, the capital may be deployed into a portfolio of wholly-owned businesses, so long as all capital is deployed through a single commercial enterprise and all jobs are created directly within that commercial enterprise or through the portfolio of businesses that received the EB-5 capital through that commercial enterprise. For example, in an area in which the minimum investment amount is $1 million, the investor can satisfy the statute if the investor invests in a commercial enterprise that deploys $600,000 of the investment toward one business that it wholly owns, and $400,000 of the investment toward another business that it wholly owns." (In this instance, the two wholly-owned businesses would have to create an aggregate of 10 new jobs between them). An investor cannot qualify, on the other hand, by investing $600,000 in one commercial enterprise and $400,000 in a separate commercial enterprise. That being said, it is important to speak with an immigration attorney to ensure that the structure of multiple projects/businesses is EB-5 compliant and that job creation timelines are sufficient to allow for condition removal.