How can I invest in an ongoing motel development project? - EB5Investors.com

How can I invest in an ongoing motel development project?

My relative is in the process of developing a motel in the U.S. He already has a business plan. If I want to join him and invest in the same project as a direct EB-5 investment, do we need to come up with a new business plan?

Answers

Phuong Le

Phuong Le

Immigration Attorneys
Answered on

Depends. If it&#39s a troubled business that you&#39re rescuing or your money is being used to expand the business (by around 40%), it may qualify. Otherwise, best to invest in a new business. Even if your relative has a business plan, chances are you&#39ll have to make an EB-5-compliant business plan.

Julia Roussinova

Julia Roussinova

Immigration Attorneys
Answered on

You should carefully evaluate EB-5 investment into an existing business. You either need to create 10 new full-time positions with your EB-5 investment or a business must otherwise qualify as troubled business or under 40% expansion rule. A business plan currently in place may not be compliant with EB-5 requirements and may need to be amended. Consult an experienced EB-5 immigration attorney for further comprehensive consultation.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

Immigration Attorneys
Answered on

Investing in an existing business is extremely difficult. If the business is losing money, then it is relatively easy to invest in a troubled business and save the 10 jobs. But otherwise, purchasing an existing business requires you simultaneous or subsequently restructure or reorganize, such that a commercial enterprise results and, of course, 10 new jobs are added. Alternatively you can expand an existing business such that a 40% increase either in the net worth or the number of employees results, but you must have at least 10 new employees to succeed.

Marko Issever

Marko Issever

EB-5 Broker Dealers
Answered on

No problem. Just make sure to revise the business plan to make sure that it is EB-5 compliant. Other than that, the standard EB-5 considerations will apply: creation of 10 new full-time positions, required investment amount, that is $500,000 for TEA and $1 million for non-TEA, etc.

BoBi Ahn

BoBi Ahn

Immigration Attorneys
Answered on

You may be able to work with the existing business plan as a base and just build on it with the requisite detail/info needed for the EB-5 filing.

Hassan Elkhalil

Hassan Elkhalil

Immigration Attorneys
Answered on

EB-5 business plans should be prepared to meet certain USCIS requirements for the investor, project and hiring of 10 LPRs or USCs. You may want to amend the business plan to meet the EB-5 requirements.

Charles Foster

Charles Foster

Immigration Attorneys
Answered on

Yes, you can make a direct EB-5 investment in your relative&#39s motel that he&#39s developing, provided it is EB-5-compliant. You may need a revised business plan in order to be EB-5 compliant, and you need to show that you will create 10 jobs for U.S. workers as a result of your investment. If you&#39re investing $500,000, then the project must be located in a targeted employment area. Otherwise, the requirement is $1 million.

Dale Schwartz

Dale Schwartz

Immigration Attorneys
Answered on

You may want to revise the business plan to show you the investment you will make and how it will affect the business and hiring of employees. The problem with small motels is that they usually don&#39t need 10 full-time employees. Usually, the maids and housekeepers are part-time. You must hire 10 full-time staff.

Belma Demirovic Chinchoy

Belma Demirovic Chinchoy

Immigration Attorneys
Answered on

No, you don&#39t need an updated BP unless the budget is changing. Ownership docs will need to be updated.

Blake Harrison

Blake Harrison

Immigration Attorneys
Answered on

Yes, the business plan would need to be modified to meet EB-5 requirements.

Salvatore Picataggio

Salvatore Picataggio

Immigration Attorneys
Answered on

Since there are EB-5-specific requirements for business plans, yes. Fortunately, even a standard business plan will give you a good foundation for the EB-5 additions.

Stephen Berman

Stephen Berman

Immigration Attorneys
Answered on

If the business plan includes a plan to create 10 new jobs based on your investment, it will be fine.

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