Are there restrictions on the types of businesses that can receive funding from EB-5 investors?
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
No, there are no restrictions as long as it is an income producing and lawful type of business.
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.
There are no restrictions on the type of businesses that qualify.
There are no restrictions.
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.
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.
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.
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.