I''m planning to do an individual EB-5 investment in 2014. The idea is to set up a group LLC constituted by 2 stores in one or two TEA areas. But in order to lower the risk and meet the requirements for 10 full time employees, I''m considering opening one store first, then opening the other one in 12 months from the first opening. The total investment would be $500,000. Would this plan qualify for the EB-5 program? What are the legal risks or problems associated with a plan like this?
If both stores are located in a targeted employment area, then you may qualify for the $500,000 investment. Also, you must create a minimum of 10 jobs. Please note that USCIS requires that the funds must be invested, or be in the process of being invested, when filing your I-526 petition.
In order to qualify for EB-5, you must have invested or be in the process of investing the required amount of capital. In practical terms, it is better to apply for EB-5 when all of the capital has been fully committed to the new commercial enterprise (NCE). What you suggested is possible, but you need an experienced EB-5 immigration attorney to guide you through the process.
Based upon the facts you present, it appears that you intend to make the investment as a direct investment. You may set up a holding company which 100 percent owns various subsidiary locations. This model will fit your intention of spreading the investment funds and required full time jobs amongst the business subsidiary.
Well, if you are doing your own investment, not an approved regional center investment, the minimum required amount is $1,000,000, so twice as much.
Your plan might qualify as long as you make the entire $500,000 minimum initial investment upfront i.e. you must have invested the entire amount at the time of the initial application as you cannot split up the money into two separate investments that are 12 months apart. Secondly, if the two stores are essentially two separate project offerings by the same LLC, you would need to create 10 jobs per store in order to successfully meet the EB-5 requirements in order to remove conditions.
Both stores will have to be located in a TEA area in order for you to qualify for the $500,000 minimum investment. How you structure your LLC and any subsidiary stores LLCs is very important. It will be very important that you consult with a qualified EB-5 immigration attorney to discuss the critical timelines for job creation as it appears you may be staggering the hiring dates of your employees during your conditional residence period.
EB-5 projects can have phases, but the investment should be made at one time. Please be aware that the job creation still needs to occur as per the EB-5 rules during the proper time period.
