For my EB-5 project, I am planning to buy a company for about $600,000. It it in a targeted employment area and has a dual portfolio: the company develops software and does medical billing, as well as invests in properties. How would it be possible for me to buy that company and through that corporation invest my money in real estate and operations/growth of the company? Most of the jobs will be made in software development, but most of the investment will be in real estate. How can I make this eligible for EB5?
Under a direct investment, the foreign investor may create a holding company as the new commercial enterprise. Once the investment goes into the holding company such funds may be distributed amongst wholly owned subsidiaries. The holding company and its subsidiaries must be within a Target Employment Area in order to qualify the $500,000 minimum investment.
You need to consult with an experienced EB-5 immigration attorney, such as myself, who can advise you in this process. The company must be a new commercial enterprise (established after 11/29/1990) and it must create new employment for at least 10 U.S. workers. The employees must be full-time employees, not independent contractors, of the new commercial enterprise. Also, for a $600,000 investment to qualify, the new commercial enterprise must be located in a targeted employment area.
You need a proper business plan to be developed in conjunction with legal counsel. It is far too complicated to provide a generic email answer.
To make the project work from a U.S. immigration/EB-5 perspective (not a business viability perspective, as we are not business or financial analysis firm), you need to show proof the location is in a TEA and that 10 full time U.S. citizen or permanent resident jobs will be created. Purchasing an existing business has its own unique requirements that would require additional information. We would also review the business activities with an economist to determine acceptable job creation.
In a direct EB-5 investment, the funds may be placed in a holding company. The holding company can own several 100 percent owned subsidiaries which can operate different type of businesses. The funds under these circumstances can be disbursed amongst the businesses as well as the required jobs.
