If someone plans to invest in an existing business, should the whole amount ($1 million) be spent strictly on restructuring or reorganizing? For example: if a business is valued at a $500,000 purchase price, can the investor buy it and spend another $500,000 for restructuring or reorganizing in order to qualify for EB-5?
Answers
Steffanie J Lewis
Immigration AttorneysYes. You would be investing $1 million in an existing business. Be careful to confirm that the business is eligible and that you would be counting the ten full-time positions correctly.
Salvatore Picataggio
Immigration AttorneysEB-5 funds must be used for the creation of jobs. Simply buying an ownership interest without showing the uses of the funds would go towards job creation may not be enough.
John J Downey
Immigration AttorneysBasically you may spend the money on restructuring or any other legitimate business reason. It all comes down to your creating the requisite jobs.
Ian E Scott
Immigration AttorneysThe short answer to your question is yes, as long as the full $1 million has been invested and you create 10 full-time jobs. You should note that the investment amount is likely going to go up to $1.2 million on Dec. 11.
DISCLAIMER: the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal, immigration, and financial experts prior to participating in the EB-5 program. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public: do not include confidential information in your question.