I want to invest in an area of the United States with a minimum $1 million investment requirement, but I want to invest in two business, with a $500,000 investment in each business. How can I invest in both businesses to meet my $1 million minimum investment amount? What problems might I face?
The structure of a holding company that fully owns and operates two subsidiaries is permitted as a new commercial enterprise. Both subsidiaries must create permanent full-time jobs that will satisfy the job requirement for direct investment. Also, an investor must show a nexus between the two subsidiaries in order to allow joint job creation. From: Question From EB5Investors.com
You may able to structure the transaction so that it may work by establishing a holding company. We would be happy to chat with you regarding this matter.
There is a way to structure your investment so that you get full credit for your $1 million investment. Since you are not relying on high unemployment, the location of the businesses should not be an issue. As long as you meet the other requirements for EB-5, your case should be approved. It would be wise for you to consult with an experienced EB-5 immigration attorney, such as myself, who can advise you on the proper structure of your new commercial enterprise.
If the minimum requirement is $1 million dollars, then you should invest in just one business. Please consult an EB-5 attorney for complex situations.
You would have to structure the investment so that there is one entity that is receiving the total amount ($1 million) in order to develop the multiple (two business that you want to develop) commercial enterprises. It can be done, but you need to make sure it has a sound structure that makes sense for the EB-5 intended purpose.
Keep in mind that if the principal place of business is in a Targeted Employment Area (TEA), you would only need to invest $500,000. Depending on the type of business you are looking to invest in, your proposal may work if you invest the funds into an entity that in turn directly creates 10 employment positions in two wholly owned subsidiaries. The key is to ensure that the newly formed entity (the "New Commercial Enterprise") remains the actual employer. I would be happy to offer you a complimentary consultation to further discuss your proposals.
You may be able to create or find a new commercial enterprise with a portfolio of businesses (including the two you are considering) that will make loans or equity investments into those businesses. That relationship can be sufficient for the new commercial enterprise to receive credit for the jobs created in those businesses receiving the loan or investment. Please also note that if the business is located in a targeted employment area (areas of high unemployment) or a certain rural area, the investment amount is only $500,000! Retaining EB5 counsel who can coordinate with an EB5 economist will be very beneficial to someone in your position.
First retain the services of an experienced EB-5 attorney. One way to invest in two businesses at the same time is to directly invest the $1 million in a holding company that wholly owns two subsidiaries in the same geographical area. The investment funds can be committed amongst the two subsidiaries operating two different business activities, and the creation of employees can be dispersed amongst the two subsidiaries.
There has to be a nexus between the two businesses. You''d have consult with a qualified EB5 lawyer before proceeding. But, theoretically speaking, it can be structured.
Have a parent company own/control both and have the employees on its payroll, and invest in the parent.
I would suggest that we discuss appropriate investment criteria, based upon qualified $500,000 investments.
I don''t see any problem with it, as long as combined investment creates the required number of permanent full time jobs. In fact, our law firm has successfully obtained approval of this investment scenario for a client last year. There are certain steps we will need to take in documenting the formation of those businesses. If you wish to schedule further consultation, please do not hesitate to contact me.
