What percentage of the new business must the EB-5 applicant own? - EB5Investors.com

What percentage of the new business must the EB-5 applicant own?

I am a U.S. citizen and am looking to partner with an EB-5 applicant to create a new business. The EB-5 investor would own 45 percent of the new business. Would this ownership percentage suffice for EB-5 purposes? If so, is the new business still required to create only 10 jobs, or will we need to create more than 10 jobs because of my majority involvement in the business?

Answers

Salvatore Picataggio

Salvatore Picataggio

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There is no percentage ownership requirement, only a dollar amount ($500,000 or $1 million, under current laws and regulations), and job creation requirement.

Ying Lu

Ying Lu

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There is no percentage limitation for the EB-5 investment in a business as long as the foreign investor's investment amount reaches $1 million, or $500,000 if the business is in a TEA. The business needs to create 10 new jobs.

John J Downey

John J Downey

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There is no percentage requirement. The Statute provides that the the investor be an "active participant" in the enterprise. This is usually satisfied by making the investor a Limited Partner. The rule is one investor=10 jobs, no more or less.

BoBi Ahn

BoBi Ahn

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There is no set percentage an EB-5 investor should or must own to qualify for the EB-5 immigrant investor petition. The requirement for EB-5 is to invest the requisite minimum capital ($500,000 in a TEA or $1 million) and create the requisite 10 full-time jobs. In order to meet the 10 job creation requirement for EB-5 purposes, each foreign national investor, by investing the requisite capital, must create the 10 jobs. It does not matter if the investor is either the majority or minority owner of the business.

Robert Lee

Robert Lee

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45 percent is OK. Actually any percentage amount is OK. You only need to create 10 full-time jobs; the equity split does not matter.

Lynne Feldman

Lynne Feldman

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There is no specific percentage required, but ten new jobs must be created for each EB-5 investor.

Jinhee Wilde

Jinhee Wilde

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The EB-5 requirement is not how much percentage the EB-5 investor owns, but whether the investor has some control or policy-setting oversight of the company. In a small business, the reality may be that the decision making or policy direction could only be effectuated based on the percentage. Thus, it is up to you and your corporate attorneys to devise the role of the ownership and control that the EB-5 investor has in the policy direction-setting of the company. The creation of the 10+ jobs is dependent on the number of EB-5 investors. If you only have one EB-5 investor, the obligation of the business is to create a minimum of 10 jobs.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

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No fixed percentage required.

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