How can I establish a special investment vehicle to attract EB-5 investors? - EB5Investors.com

How can I establish a special investment vehicle to attract EB-5 investors?

I want to form a special investment vehicle (SPV) where EB-5 investors can pool their money as limited partners. The SPV will be affiliated with a regional center and solely loan money to a franchise holding company. The holding company will be located in a TEA and will secure leases for a 2-year period and open 8 to 10 franchise locations in designated TEAs. Could this be a feasible deal structure for EB-5?

Answers

A Olusanjo Omoniyi

A Olusanjo Omoniyi

Find an EB-5 Visa Lawyer: Immigration Attorney
Answered on

Yes, it is feasible. It is advisable to work with attorneys who can work on both corporate and immigration ends of this type of transaction.

Daniel A Zeft

Daniel A Zeft

Find an EB-5 Visa Lawyer: Immigration Attorney
Answered on

You need a consultation appointment with a corporate and securities attorney who is experienced with EB-5 matters.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

Find an EB-5 Visa Lawyer: Immigration Attorney
Answered on

While limited partners can pool their money in an investment, you need to be able to show how their investment creates at least 10 direct, or if affiliated with a regional center, indirect job. Think about job creation more than mere investment in terms of achieving success.

Clem Turner

Clem Turner

Securities Attorneys
Answered on

This is feasible. I suggest the holding company or another affiliate be the job-creating enterprise in order to pool jobs across the entire enterprise. In this way, if one franchise created nine jobs, but another creates 11, the job requirement for both will be met. Keep in mind that the franchise locations need to be identified prior to the EB-5 investors filing their I-526 petitions. If the holding company is divesting after two years when the lease expires, there are redeployment concerns as well.

DISCLAIMER: the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal, immigration, and financial experts prior to participating in the EB-5 program. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public: do not include confidential information in your question.