What are the qualifications for a business receiving an EB-5 investment?

There are a lot of requirements for a direct EB-5 investment case. EB-5 funds must be used to create the minimum of 10 full-time positions (at least 35 hours a week). The restaurant must be principally doing business in a targeted employment area to qualify for a lower investment amount. It also must have an EB-5-compliant comprehensive business plan. Consult an experienced EB-5 immigration attorney who handles direct EB-5 cases for more detailed advice.

You will have to hire 10 more full-time employees over the two-year period after the EB-5 case is approved. Can the restaurant afford to do this?

Although this may be a small business, it is still has to comply with EB-5 requirements. Among those requirements are: It must create a business plan that is Matter of Ho compliant, the investment fund must be either $500,000 or $1 million (depending on the location of the business), the investment must create at least 10 jobs and, last but not the least, you must show that the investment fund is obtained from legal source. Advisably, consult an EB-5 attorney on the best way to forward on your plan.

Will the business sustain 10 full-time workers within two years (many restaurants operate with part-time employees)? Is the business in a TEA? Business plan is critical?

A foreign national may make a qualified EB-5 direct investment in your business and it&#39s the investor that would have more to worry about than you. The investor would have to determine whether or not your business is located in a targeted economic area (TEA) as otherwise he would have to make an minimum $1 million investment. If you get a determination from your mayor or county judge that the business is located in a TEA, then the investor would have to make an investment of at least $500,000 instead of $1 million. As a result of the investment, 10 jobs for U.S. workers must be created over a two-year period. Other than that, you must work out investment terms that are agreeable between you and your investor.

The project (business) needs to create 10 additional positions for U.S. citizens/permanent residents. An immigration attorney and business plan writer will be able to turn this business into a properly structured EB-5 project.

The business must be a new commercial enterprise and at least create 10 new full-time jobs for U.S. residents/citizens from the EB-5 investment, etc.

An attorney will need to understand your business to advise properly, but your corporation documents will need to reflect the friend&#39s investment, ownership and management/policy formulation duties. And you will need to create 10 additional jobs and justify the investment&#39s connection with those jobs/expansion.

This process is quite complicated and probably very difficult to summarize in a few sentences here. Therefore, you should certainly speak with an experienced immigration attorney to get a more comprehensive answer. That said, in a nutshell if the restaurant is not in a targeted employment area he will most likely need to make a $1 million equity infusion in the form of common shares or preferred stock into your business. Your friend cannot simply lend you money. His money has to be at-risk, meaning his investment in your business cannot yield a fixed income. Preferred stock with some preferred rate is OK. You will need to show that his investment either created 10 or more new, direct jobs or prevented 10 or more direct jobs from being eliminated. You cannot count the current employees in the business toward calculating this number.

I would consult with an experienced EB-5 investment attorney with experience in direct investment EB-5. You may also want to consult with an experienced business plan company.

If it&#39s an already existing business, it will be difficult to qualify unless you have plans to expand the business and create new jobs. Also, it is important to understand that USCIS will be looking at (legal) job creation closely and will likely examine whether you have I-9 paperwork for everybody working at your restaurant. Finally, remember that the investor and his immediate family will not count toward the 10-job minimum requirement if they choose to work for the restaurant.