How can a direct EB-5 business support the application of several foreign investors?
I am a foreign investor with a business plan and some start-up capital to open a business in the U.S. I recently met another investor who was willing to invest in my business idea. We are wondering if we can also obtain residency in the U.S. with this investment through the EB-5 program. Can a direct EB-5 business support the application of two investors? If so, how should we structure the business to make it compliant with USCIS rules?
Yes, your ideas are possible and an EB-5 direct investment business can be operated. However, each investor must meet the investment fund requirement of at least $500,000 (Note, if you do not invest until after Nov. 21, 2019, you will have to invest $900,000 per person/investor).
Two EB-5 investors may pool funds to qualify for green cards based on a direct EB-5 investment. Each EB-5 investor is required to create the minimum 10 full-time positions and each must invest the requisite minimum investment amount originating from a lawful source of funds.
Pooled investment for a direct project is OK, as long as 10 jobs are created for each investor (and each investor is responsible for his or her own $500,000 or $1-million investment). If the business can support at least 20 full-time employees, then two investors can each drop $500,000 in there.
Yes, it can work, but you need to show at least 20 full-time permanent jobs will be created. If not in a TEA, then $1 million each before Nov. 21 and $1.8 million each after Nov. 21.
Yes, one EB-5 project can support more than one investor. You only have until Nov. 21 to prepare the papers, put in the money, and file with the immigration service before the minimum investment goes up to $900,000.
If you plan to form a business and file your EB-5 application before the new regulations are expected to go into effect on Nov. 21, 2019, then you will need to invest $1 million each for a total of $ 2million if the business is not located in a targeted employment area (TEA). If, on the other hand, it is located in a TEA, your investment obligation would only be $500,000 each for a total of $1 million. Besides, you will need to create at least 10 full-time positions each for a total of at least 20 full-time positions so that both of you can obtain permanent residency in the U.S. Please note that you can only count direct jobs, unlike the case with regional center projects whereby indirect and induced jobs are also counted. Last, but least, your project would need to be EB-5 compliant with a proper business plan and other requirements. Your immigration attorney could explain these requirements to you in more detail.