What is the job requirement if an EB-5 investor saves a failing business?

There must be an expansion of the net worth of the business or in the number of employees by 40%. It is possible that a 40% increase in employees is determined to be more than 10.

If the business is failing—if it has suffered a net loss of 20% or more over the previous 12 or 24 months prior to filing—it may qualify as a "troubled business" enterprise. This would then allow you to save the preexisting jobs (no less than 10 full-time positions) at the company.

10 jobs must be preserved, created or some combination of the two. You will need audited financial statements and tax returns for the company and you must show the source of funds for the investment. The problem is troubled businesses have already often done layoffs and it is, therefore, difficult to maintain pre-investment employment job levels. Also, you must meet the troubled business definition that is one that has been in business at least two years and has suffered a net loss) in the last 12 or 24-month period, and that loss is equal to at least 20% of the business net worth prior to such loss.

Assuming your friend's business was established after November 26, 1990, it is considered a new commercial enterprise. If it was established before that date, you would need to restructure the business or expand the business such that a new commercial enterprise results. You should consult with an experienced EB-5 immigration attorney regarding the rules for restructuring or expanding the business. If the new commercial enterprise qualifies as a "troubled business," you must show how your investment maintained the pre-investment levels of employment, with no layoffs and that you maintained at least 10 full-time positions (per EB-5 investor). A troubled business is one that has a net loss of at least 25% of its income or assets in the last 12 months or 24 months. Again, since these rules are very fact-specific, you should have an EB-5 attorney review your particular situation with you.

In an investment in a "troubled business" scenario, you can count the 10 preserved jobs (instead of creating additional new 10 jobs) per EB-5 investor, while not allowing total employment to sink below pre-investment levels if the enterprise indeed qualifies as a "troubled business" as defined in the EB-5 regulations.

Job creation in the regional economy is the cornerstone of EB-5. There are easier options to immigration investment.

You could do that. You would still need to create 10 new jobs.