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What are the minimum investment requirements for using a troubled business for EB-5?

Are there any minimum investment criteria for buying out a troubled business and using it for EB-5? I know that the program requires $500,000 or $1 million for new projects, but I am not sure about the requirement for a troubled business.

Answers

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    Barbara Suri

    Immigration Attorney
    Answered on

    The investment amount remains the same: $500,000 or $1 million, depending upon the location of the business.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    You may qualify for a lower investment threshold. Troubled business rules are complex, but in general a troubled business means one that has existed for at least two years and experienced a net loss during the last 12 or 24 months (immediately before filing the I-526 petition) that exceeds 20% net worth for accounting purposes. Even though regulations address preserving only the existing number of jobs, USCIS maintains that 10 jobs must be preserved. Thus, you may be required to create additional full-time positions (at least 35 hours a week). Consult an experienced EB-5 immigration attorney and CPA to review the financials and consider whether or not it is a viable EB-5 investment option or you may be better off investing into a reputable regional center project.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    There is no special amount for taking over a trouble business. However, be careful with the takeover and ensure that investing the basic EB-5 amount will result in running a successful business that eventually fulfill your business plan. Advisably, consult an EB-5 attorney for further planning before proceeding further.

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    Mitch Wexler

    Immigration Attorney
    Answered on

    Same as for any other EB-5. $500,000 if in a TEA or $1 million if not.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    The change is for job creation, not an investment amount. If properly classified as troubled, you can count preserved jobs toward the 10 required jobs.

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    Sally Amirghahari

    Immigration Attorney
    Answered on

    I am not sure what you mean by troubled business. However, the minimum investment under the EB-5 program is $500,000. So it cannot be less than that. By the way, probably this $500,000 amount will increase by end of September!

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    Dale Schwartz

    Immigration Attorney
    Answered on

    Sane dollar amounts for a troubled business. Better hurry. The minimum amount is about to go up to $1,300,000!

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    The investment requirements for an EB-5 troubled business are the same for any other direct or regional center EB-5. Currently, the investment amounts are $1 million or $500,000, if the NCE is principally doing business in a targeted employment area (TEA). Those amounts are subject to change.

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    Marko Issever

    EB-5 Broker Dealer
    Answered on

    From a minimum required investment amount perspective, there are no special rules for "a troubled business." If it is located in a TEA, the requirement is minimum $500,000 and if not, the minimum required investment is $1 million.

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    Hassan Elkhalil

    Immigration Attorney
    Answered on

    The requirement will be the same: $500,000 if the business in a targeted employment area, or TEA, or $1 million if the business in an area that is not in a TEA. There are also other conditions and requirements that you have to meet related to the business.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    The amount is the same. The advantage of buying a troubled business is you can save 10 jobs instead of creating 10 new ones.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    Minimum investor amount is the same for a troubled business for EB-5 as it is for the regular new commercial enterprise.

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