Does EB-5 investment have to done by one individual? I have two best friends who are very interested in investing in EB-5 and would like to make the investment together with me. I am considering this option. If we could invest together, what are some restrictions or important things we need to pay attention to?
First, consider consulting an EB-5 attorney for planning this business. Second, write a business plan that spells out all different parts of the business that should describe how you plan to meet the EB-5 requirements. Last but not least, determine how much each investor is supposed to invest, whether it would be $500,000 or $1 million. Be aware that depending on the location of your planned business, each foreign investor seeking an EB-5 green card must invest at least $500,000.
If you are considering a direct EB-5 pooled investment, it is certainly possible. Each of you will need to meet the requisite minimum investment amount that originates from a lawful source of funds and each of you must create at least 10 full-time jobs in the business.
One individual must make an EB-5 investment. However, a specific project could have multiple EB-5 investors who each make a separate EB-5 investment in the project.
You can absolutely pool your investments, but, of course, you need to create 10 jobs each. This is very common. I would, however, also recommend you look at the regional center program since 94 percent of investors have chosen this program over the direct investment option.
An EB-5 visa is for an individual and that person's family. ach investor would need to apply for the EB-5 visa and meet the requirements or gift the money to one investor toward the investment, then work out an agreement with the investors. However, you also need to make sure you are not giving the other investors any guarantee of a return. Another way to have multiple investors in one project would be to set up a regional center. However, each investor into the regional center would still be required to meet the EB-5 requirements and apply for the EB-5 visa. You may want to consult with an immigration attorney who works with EB-5 visas to discuss your best options.
Each would need to invest the required amount and each create 10 jobs if they want EB-5 green card as well. If you are the only investor looking for a green card, then they can invest with you and only you have the monetary limit and job-creation requirement.
It is OK to pool your resources to start a business and do the EB-5. However, make sure that each investor will invest the minimum amount necessary ($1 million or $500,000 for TEA) and each of you must file his or her own I-526 petition with that investment. Also, as there are three or four investors in the group/business, you must create 30 or 40 full-time, permanent jobs for the business.
Each person filing would need to individually comply with the requirements ($500,000 or $1 million investment of personal funds, creation of 10 jobs, etc.).
A group of investors can pool its money and invest in a single commercial enterprise; however, in order for the individual investor to qualify for EB-5 benefits, he/she must each invest the minimal requisite capital (i.e., $500,000 for TEA and $1 million for non-TEA), and create the requisite 10 jobs each, along with the other EB-5 requirements.
Many individuals could make an investment in the same project, provided that each individual investor meets the statutory requirements to qualify for permanent residency based upon an EB-5 petition on Form I-526 being approved. Thus, if you invest with your friends, each of you would have to meet the minimum investment requirement of $1 million unless the enterprise is located in a targeted employment area (TEA), in which case the investment would be $500,000 each. Also, each of you would have to show that your investment had created 10 full-time jobs for U.S. workers, unless you are investing in a project under the auspices of a regional center. The fact that you may be friends is irrelevant. Whether you know each other or not, each investor would have to meet the specific statutory and regulatory requirements.
Unlike the E-2 treaty investor visa, which requires at least 50 percent ownership (making it impossible for more than two people to invest), the EB-5 visa does not have any specific ownership requirements. As such, you and any number of friends could invest together in an EB-5 project. However, keep in mind that each of you would be required to commit the capital investment ($1 million USD or $500,000 USD if the project is located in a TEA). Each investment would also be required to create the requisite number of jobs. Please consult with a qualified EB-5 attorney for additional information.
The fact that there are three or four investors is no bar to investing in a regional center project. If you are considering a direct investment, then the number of investors will be limited by the number of jobs that will be created. Provided the project can create at least 10 jobs per investor, three or four investors will be able to invest. However, in the case of a direct investment, each investor must be engaged in the management of the business and each must invest directly into the job-creating entity.
Every individual unless related as a qualifying dependent (spouse and unmarried children below the age of 21) have to individually invest the minimum qualifying amount of $500,000 in a targeted employment area (TEA) or $1 million in a non-TEA.
Pooled direct investments are perfectly fine. You would work with an attorney to set up the direct structure and engage third-party professionals needed for the deal (corporate attorney, business plan, etc.).
Yes, you and your friends could invest together in an EB-5 project. You would need to show that 30 full-time jobs (10 jobs per investor) will be created with the investment.
This is more of a EB-5 direct investment. Thus, this can be done by a group of investors, investing $1 million for each family and also creating 10 jobs per investor. Having said that, the direct investment ultimately requires more details in business planning and five years projecting of financials than a regional center investment. It is very complex. Thus, we urge you to retain an experienced legal counsel to handle the direct investment.
If each of your friends is looking to get a green card from his or her investment, each must invest the requisite amount of money. This is, $500,000 if in a targeted employment area (TEA) or $1 million elsewhere. If you each invest the requisite amount of money and at least 10 jobs are created for each of you, you all can move forward with EB-5. There are multiple moving parts with this type of arrangement, so competent legal advice should be sought.
You can invest and apply for EB-5 together with other investors on the following conditions: Each investor must invest at least $500,000 in a TEA or $1 million in the enterprise; and each investor must create 10 full-time jobs. Each investor must also comply with all other EB-5 eligibility requirements.
It is permitted to have one business enterprise in which several EB-5 investors invest. The job requirements remain the same. Each qualified investment must create 10 jobs for U.S. citizens or permanent residents. For example, if you had three investors in one enterprise it would need to generate 30 full-time jobs. The amount of the qualifying investment will depend on the location of the business.
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