Could a tech services business qualify as an EB-5 investment? - EB5Investors.com

Could a tech services business qualify as an EB-5 investment?

My tech company is deeply involved in M&A integration and cloud services. The EB-5 program has emerged as a potential investment source we’re considering. We’re curious about the program’s applicability and viability for a tech services firm like ours. Specifically, have technology service businesses attracted EB-5 investment before? Could a tech-focused firm qualify as an EB-5 investment, considering the job creation requirements and the program’s emphasis on indirect and induced employment impacts?

Answers

Bernard P Wolfsdorf

Bernard P Wolfsdorf

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Answered on

It's hard to see how investments will directly or indirectly create jobs and may be hard to get investors.

Tahmina Watson

Tahmina Watson

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Yes, your tech company could absolutely be the vehicle for the EB-5 program. If you are going to invest the required funds for an EB-5 and you have the potential to create 10 direct jobs, your tech company could be the basis of your EB-5 application.

Belma Demirovic Chinchoy

Belma Demirovic Chinchoy

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All companies technically qualify for EB-5 capital; the amount you can raise will depend on how many jobs can be created. This can be modeled during the dd process so you can make an informed decision.

Richard A Gump, Jr

Richard A Gump, Jr

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There are no limitations on the type of company that can qualify for an EB-5 investment except that it must be a for profit new commercial enterprise. A tech company can qualify for EB-5 investment but whether it makes financial sense is another question. Most EB-5 project have been "brick and mortar" to take advantage of indirect and induced job with multiple investors through a Regional Center. You might scour the web for EB-5 regional centers to find one that would talk to you about your company. Forming your own regional center is very expensive and tightly regulated to qualify for EB-5 visas and protect investors. You could consider a standalone EB-5 but you could only take on one foreign investor (only regional centers can take pooled foreign investors).

Michael E Piston

Michael E Piston

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There is no reason why one may not make an EB-5 qualifying investment in a technology services firm provided that all the legal requirements are satisfied. Nevertheless, I am not personally aware of whether technology service businesses have attracted EB-5 investment before.

Linda Liang

Linda Liang

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Any business that can create 10 jobs can qualify for EB-5. But if you want to take advantage of indirect jobs, your impact on the neighboring areas, you must be part of a Regional Center, which requires a significant amount of effort.

Robert West

Robert West

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Personally, I have not seen any tech type businesses attempt this type of investor visa. I see manufacturing, and residential and commercial real estate projects from Hospitals to malls etc... I could see it working if you manufacture hardware and maybe software is available for commercial sale.

Robert V Cornish Jr

Robert V Cornish Jr

Securities Attorneys
Answered on

Such a project could certainly be eligible if in fact it creates jobs. Your hurdle is to ascertain how many jobs would be created by your venture. Getting an economist to do the analysis for you at the early stages here would be ideal.

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