How involved can a charity be in an EB-5 direct investment?

I need more information about what the business is and what you are doing. But, based on the information provided, there is nothing that would automatically render investors ineligible for EB-5.

The investors will have to invest in a New Commercial Enterprise and the Job Creating Entity, which must be a for-profit entity.

As long as the NCE is a for-profit entity and otherwise meets all of the EB-5 requirements, I do not think that renting facilities from a charity will impact the EB-5 eligibility of your project.

This may be more of an accounting question. The EB-5 entity is paying a charity for the use of the premises. It is a rental payment as far as you are concerned. The charity can list it as a donation; this should not affect the EB-5 project.

I would probably see if it is in the charity&#39s rules for them to be able to make such an agreement and maintain their charity status. The rules state that a commercial enterprise means any for-profit activity formed for the ongoing conduct of lawful business including, but not limited to: a sole proprietorship, partnership (whether limited or general), holding company, joint venture, corporation, business trust or other entity, which may be publicly or privately owned. So it depends on what your company is doing. Personally I would not recommend it because it is too risky creating a for profit company with a non profit&#39s name.

Charity is not compatible with EB-5. The investment, by regulations, has to go into private and "for-profit'' business, which is in the nature at-risk. A non-profit organization is not an at-risk business, which is excluded from EB-5 program.

The "new commercial enterprise" must be a for-profit entity, but the "job creating entity" that would receive a loan or investment from the NCE (allowing the NCE to take credit for job creation) could possibly be a non-profit. I would need to know more about your proposed arrangement to be sure.