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How can I sell my business to an EB-5 investor?

I have a 4,500-square-foot restaurant in San Antonio, Texas. The business has been around for eight years and I am looking to sell it to an EB-5 investor. How should I proceed with this? What documents do I need to provide? What kinds of professionals do I need to retain?

Answers

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    Dale Schwartz

    Immigration Attorney
    Answered on

    The buyer will need an experienced EB-5 lawyer. Keep in mind that no matter how many employees you have now, the new owner will have to hire 10 more new fill-time U.S. employees (unless the restaurant has been losing money). Will the restaurant support this many employees?

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    It is problematic to use an existing business as a vehicle for an EB-5 investment.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    Your restaurant may not qualify an EB-5 investor for a green card unless it is a troubled business or through expansion rule, or an investor needs to create 10 new full-time positions (at least 35 hours a week). Talk to an experienced EB-5 immigration attorney.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    No different than selling to any other investor but to qualify for EB-5 the investor must not only pay $1 million-plus, but the business and investment must support 10 new jobs.

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    Stephen Berman

    Immigration Attorney
    Answered on

    How is it going to create 10 new jobs? It does not seem likely this would qualify.

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    Belma Chinchoy

    Immigration Attorney
    Answered on

    The only documents that may not be a part of a standard purchase/sale are employee documents - I9s, W2s, current payroll. The investor should engage an EB-5 immigration attorney to oversee the sale and ensure proper documentation (for EB-5 purposes) is obtained.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    Your existing enterprise may not meet the requirement of a new commercial enterprise. However, your first step should be to consult with an investment immigration attorney to explain your goals and the immigration goals of your investor.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    The first step would be to make sure an EB-5 investor could get a green card by investing in your business. If it's a troubled business, in that it has lost at least 20 percent of net worth in the past 12 or 24 months before filing, then you only have to show you saved 10 legitimate jobs. If it is not troubled, then the investment has to be part of a significant restructuring, increase net worth by 40 percent and create at least 10 additional new jobs to safely get an approval.

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    Marko Issever

    EB-5 Broker Dealer
    Answered on

    Eligibility for the EB-5 program through the direct EB-5 route is a complicated process that requires professional help. Your business will need to create 10-plus new direct jobs attributable to the equity infusion by the EB-5 investor. You need to work with experienced immigration attorneys specializing in EB-5. You also need a business broker who is in touch with EB-5 investors who are looking to go the "direct" route. The equity infusion will most likely need to be $ 1 million. It is quite hard to get the TEA designation on direct investment EB-5 cases and be eligible for the reduced $500,000. I am assuming that your business was established after 1990 since you stated that it has been around for only eight years. This qualifies it as a new commercial enterprise, otherwise known as NCE. As for the documents you will need they include,e but most likely not limited to, the limited partnership agreement, business registration documents, escrow agreement and a business plan to be reviewed by USCIS.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    You can certainly sell the business to an EB-5 investor and you should work through your attorney. However, the EB-5 investor buyer needs to do a lot of preparation with the purchase by seeking the help of an EB-5 attorney as well. This is primarily due to the fact that the buyer needs to ensure that the purchase must be organized so that it can be acceptable to the USCIS. Also, the EB-5 investor must run the business entity purposely to meet EB-5 requirements so that the buyer can obtain green card through the purchase. Apparently, the emerging business will be considered as a direct investment under EB-5 and the investor will have to make day-to-day management decisions of the business. All these legal and business issues require an assembly of professionals which may include attorneys, accountants, just to name a few.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    You should contact an EB-5 immigration attorney with experience in EB-5 project structures to turn your business into an acceptable EB-5 project. When I work with clients like this, I assemble the team of professionals for all required documents and create the template for the foreign investor to file with USCIS.

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    Charles Foster

    Immigration Attorney
    Answered on

    The potential purchaser of your business who wishes to qualify the acquisition as a direct EB-5 investment must first determine whether or not it is located in a targeted employment area (TEA). Obviously, the investor wants to pay a fair market price, but he would have to pay a minimum of $1 million unless it is located in a TEA. Furthermore, he has to have a business plan to show that as a result of the investment over a two-plus year period of time he will create at least 10 full-time jobs for U.S. workers. You should retain an experienced immigration lawyer who can serve as a quarterback working the several professionals who are required for a transaction like this, including a corporate lawyer and an economist and business writer. You need to determine whether or not the project is located in a TEA to determine whether or not the minimum investment is $1 million versus $500,000.

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