Questions and Answers > EB-5 Capital Fundraising

What kinds of businesses qualify for EB-5 visa investment?

Are there restrictions on the types of businesses that can receive funding from EB-5 investors?

Answers

• Julia Roussinova

  Immigration Attorney

  Answered on January 7, 2013

  Any lawful business qualifies if created to engage in active commercial activity. Allowed forms of business may include sole proprietorship, general or limited partnership, holding company, joint venture, corporation, business trust, limited liability company, or other "profit" public or private entity. Nonprofits are not permitted business forms. Holding companies created to hold passive investments (such as residential real estate for rent) will not qualify as EB-5 investment.

• Laura Danielson

  Immigration Attorney

  Answered on December 27, 2012

  To qualify for EB-5 funding, the business must be a new commercial enterprise employing at least ten full-time U.S. workers. That new enterprise must be one in which the applicant must invest (or be in the process of investing) at least $1 million (or $500,000 if investing in a ''targeted employment area''). The investment must benefit the U.S. economy and create the requisite ten jobs.

• Robert D'Andrea

  Immigration Attorney

  Answered on December 26, 2012

  Just about any type of legal business may qualify under the EB-5 regulations. Of course the business will need to create 10 full-time jobs, the invested funds must originate from a lawful source, and the investor will need to exercise a limited amount of control over the business. You should always consult an experienced U.S. business immigration attorney about your case.

• Mahsa Aliaskari

  Immigration Attorney

  Answered on December 21, 2012

  Any legal for profit entity that is a new commercial enterprise as defined by the regulations may qualify. A new commercial enterprise is one which: Established after Nov. 29, 1990, or Established on or before Nov. 29, 1990, that is: 1. Purchased and the existing business is restructured or reorganized in such a way that a new commercial enterprise results, or 2. Expanded through the investment so that a 40-percent increase in the net worth or number of employees occurs.

• Louis M Piscopo

  Immigration Attorney

  Answered on December 21, 2012

  Any type of legal business can qualify for the EB-5 visa program provided it will create 10 full-time jobs. By legal I mean that the business does not engage in activities that violate local, state, or federal laws.

• Larry J Behar, Esq

  Immigration Attorney

  Answered on December 21, 2012

  it has been our experience that most job creating businesses which need capital to start or to expand may qualify for EB 5 funding. That said, they need to be reviewed on a case by case basis.

• Jinhee Wilde

  Immigration Attorney

  Answered on December 21, 2012

  There is no restrictions on the business as long as it is a new business enterprise or saving a failing business, which lost more than 40% in value or jobs past year. The key is to make sure that the business that receives EB-5 investment will create 10+ permanent, full-time jobs for each EB-5 investment.

• Jennifer Parser

  Immigration Attorney

  Answered on December 21, 2012

  Any business that places the investment at commercial risk with no guarantees of success, therefore active, not just buying a nice condo on the beach qualifies for an EB-5 investment. Also, a very important requirement is that 10 US workers must be hired and remain hired to work in the enterprise in which the investment is made throughout the green card process (so 2 years). Since the US government is vigilant as to foreign investment into something that could impact public safety, that type of investment should be avoided.

• Steve Garmo

  Immigration Attorney

  Answered on December 21, 2012

  An evaluation (cost $1,000) needs to be done to determine the best options for you. I am attaching a checklist of items needed to complete the evaluation. Feel free to contact me should you have any questions.

• Ed Beshara

  Immigration Attorney

  Answered on December 21, 2012

  The US Business receiving the investment funds has to be active and for profit.The investment funds cannot be transferred to a non-profit organization.

• Anthony Ravani

  Immigration Attorney

  Answered on December 21, 2012

  No, there are no restrictions as long as it is an income producing and lawful type of business.

• Clem Turner

  Securities Attorney

  Answered on December 21, 2012

  Technically speaking, there is no restriction on the type of business that can use EB5 funds. Any business that can generate the requisite jobs will be eligible. As a practical matter, there is more job creation in some industries than others, thus there are more regional centers with approvals to raise money within those industries than others. You should still have a wide array of interesting projects to chose from.

• Neville M Leslie

  Immigration Attorney

  Answered on December 21, 2012

  There are no restrictions on the type of businesses that qualify.

• Stephen Berman

  Immigration Attorney

  Answered on December 21, 2012

  There are no restrictions.

• David Hirson

  Immigration Attorney

  Answered on July 11, 2012

  There are many requirements to qualify the business and the investor for the EB-5 program. In general terms with several exceptions, the business must be a new business (as defined in the regulations). The investment mus be for $1,000,000 or $500,000 depending upon the whether the business is located in a Targeted Employment Area (TEA) or not. The funds invested must be proved to be from a lawful source, fully documented and explained to USCIS. The investor has to have some level of management control over the business. A limited partner has a very low threshold to reach to meet this test. Ten new employees, legally entitled to work in the US must be hired on payroll for at least 35 hours per week. If the investment is in a Regional Center under the Pilot Program, then the employees can be established indirectly utilizing reasonable methodologies to show the impact of the investment on employment in the area. This si a detailed and complex area of US immigration law and qualified and experienced counsel should be hired to guide you through the myriad of constantly changing requirements.

• Reza Rahbaran

  Immigration Attorney

  Answered on July 11, 2012

  There are no restrictions on the type of businesses that can receive EB-5 funding unless the business requires all investors to be United States citizens. This is sometimes the case where the business deals with sensitive government information and national security issues.

• Kate Kalmykov

  Immigration Attorney

  Answered on June 12, 2012

  The EB-5 visa permits investment through any commercial enterprise. This include any for-profit entity such as a sole proprietorship, limited or general partnership, holding company, joint venture, public/ private partnership, corporation, LLC, business trust or other publicly or privately held entity. This definition includes a commercial enterprise made up of a holding company and its wholly owned subsidiaries as long as each subsidiary is engaged in a for-profit activity. Thus, non-profits are not permitted to accept EB-5 funds. Likewise any other non-commercial activity such as owning a home in the U.S. will not satisfy EB-5 legal requirements.