Questions and Answers > EB-5 Capital Fundraising

What types of businesses qualify for EB-5 capital?

I have a service business. If I can get some investment money I know I can grow the business to create the required jobs. Everything I read makes it seem that most of the money goes to development projects - hotels etc. Is there a restriction on the types of businesses that qualify for EB-5 capital?

Answers

• Lei Jiang

  Immigration Attorney

  Answered on May 20, 2013

  There is no restriction on the types of businesses for EB-5 project, but there is job creation requirement. The reason most projects involve hotels is that hotels generate jobs.

• BoBi Ahn

  Immigration Attorney

  Answered on May 20, 2013

  There is no restriction on the type of business, as long as it is a lawful business with legitimate business activities, and for-profit organization. The only business relevant business requirement for EB-5 purposes would be that it be a new commercial enterprise and the creation of the requisite 10 full-time jobs for U.S. residents/citizens. Hope that clarifies.

• Ying Lu

  Immigration Attorney

  Answered on May 20, 2013

  EB-5 is a good way to finance your own business. As long as it is a for-profit new commercial enterprise, there is no limitation on the type of the business. It can be a restaurant, a supermarket, a maid service company, a high tech company and etc. However typically for an individual investor, a direct EB-5 project is more complicated than a regional center project. You need to consider the location of business if the investor prefers to invest only $ 500,000, the business structure if the business will have multiple layers of structure, the proper exit strategy and so on. I would suggest you contact an experienced EB-5 attorney to discuss the questions.

• Roberto Ortiz

  Immigration Attorney

  Answered on May 20, 2013

  There is no restriction on the type of business that you can use for an EB-5. The most important requirement is that each investor needs to create 10 full time jobs. If you have any additional questions, please do not hesitate to contact me.

• Reza Rahbaran

  Immigration Attorney

  Answered on May 20, 2013

  The investment funds may be used in any "for profit" enterprise so long as the requisite jobs are created and funds spent within the required timeline.

• Mark Kowalewski

  Immigration Attorney

  Answered on May 20, 2013

  Commercial enterprise includes a broad spectrum of business relationships including sole proprietorship, partnerships (limited or general), holding companies and their wholly-owned subsidiaries, joint venture, corporation, business trust or other publicly or privately owned entities provided they are all "for profit" business operations.

• Echo Meisheng King

  Immigration Attorney

  Answered on May 17, 2013

  The new commercial enterprise you invest in must be a for-profit business entity, and it must be lawful. There are no other restrictions.

• Joseph Best

  Immigration Attorney

  Answered on May 17, 2013

  The issue is not the type of business. Any legal business entity could be one in which an investor could invest (if not otherwise regulated as a business by the federal or state law eg. defense contractors/ aviation etc.). Generally there is no issue regarding the business so long as the business is a bona fide legal business capable of showing that it is such, and capable of legally creating the required jobs. The other issue is investing in a new business or an existing business. It''s generally more straightforward to invest in a new business. But it is doable as well to invest in an existing enterprise. Expansion then is required. The application process for the EB5 is incredibly fact specific - so it is fruitless to provide hypotheticals. Essential evidentiary showings are required regarding the enterprise into which funds are being invested and regarding the intending immigrant and the sources of funds being invested. The details are everything. We represent companies and investors from around the U.S. and the world. Get in touch if you need more information.

• Philip H Teplen

  Immigration Attorney

  Answered on May 17, 2013

  Any appropriate business plan can qualify. Realty certainly leads the way but is not the only approvable investment. We can help you, if you like.

• Clem Turner

  Securities Attorney

  Answered on May 17, 2013

  Any legitimate business in any industry can qualify for EB-5 capital, the only requirement is job creation. You should discuss your project with a qualified attorney (and perhaps an economist) to determine if you do indeed meet the criteria for participation. They can also fill you in on the "nuts and bolts" of EB-5, as this information is not readily available to the public.

• Julia Roussinova

  Immigration Attorney

  Answered on May 17, 2013

  Any commercial entity engaged in a lawful business activity is qualified for EB-5 purposes. Nonprofits are not a permitted business form. Holding companies created to hold passive investments such as residential real estate will not qualify. A service business should qualify as long as it meets EB-5 program requirements, including the job creation requirement. If the business is not within a targeted employment area, the required minimum investment will be $1M per investor.

• Boyd Campbell

  Immigration Attorney

  Answered on May 17, 2013

  No, but job creation and a sound business model are big factors to consider.

• Jinhee Wilde

  Immigration Attorney

  Answered on May 17, 2013

  There is no restriction or limitation on the type of business that could receive EB-5 investment. As long as the EB-5 investment is used and creates 10+ permanent, full-time jobs and the source of funds of that investment was derived from legal means.

• Margo Chernysheva

  Immigration Attorney

  Answered on May 17, 2013

  The business has to be a for-profit business that creates 10 full-time jobs. A new business is preferred as you don''t want to get into increasing the total employee-base by 40%, etc.

• Rana Jazayerli

  Immigration Attorney

  Answered on May 17, 2013

  The only restriction that the EB-5 regulations place on the type of business is that it must be a "commercial enterprise." USCIS has interpreted this to mean that the business must be "for profit" and must generate economic activity. Thus, non-profit businesses would not qualify. (Further, USCIS has been reluctant to approve businesses that only purchase, renovate and sell residential units on the ground that such activity is not commercial.) A for-profit service business could qualify as long as you can reasonably show that at least 10 jobs will be created, and further, that the business requires and will use the full amount of capital.

• Mona Shah

  Immigration Attorney

  Answered on May 17, 2013

  The Regs are very flexible in this regard. They are silent (and impliedly do not place a restriction) on the type of businesses that qualify for EB-5 investment by industry classification such as construction, service etc. However, the THREE critical considerations are that the investment must be made in (a) for -profit; (b) new commercial enterprise for; (c) ongoing conduct of lawful business. In addition, job creation, capital investment, and compliance with federal and state securities laws are some of the other critical considerations.

• Fredrick W Voigtmann

  Immigration Attorney

  Answered on May 17, 2013

  There is no legal or regulatory restriction on the type of business; it just must be a legal, for-profit business. Some businesses are better suited for EB-5 because they require that new jobs be created within the required time frame. For regional center projects, there are a lot of development projects, like hotels, that work well, but those are not the only types of businesses. Also, for direct investments, almost any business that requires capital and can hire 10 employees can be structured to qualify for EB-5.

• Shahzad Q Qadri

  RC Creator

  Answered on May 17, 2013

  There is no restriction as to the type of business. While this program has been utilized predominantly by developers, we are seeing entrepreneurs diversify. If your business can create jobs, you can use the program to your benefit.

• Marisa Casablanca

  Immigration Attorney

  Answered on May 17, 2013

  There is no restriction of types of companies. There are many regional center projects, from factories, to assisted living facilities, etc. We are available if you need further assistance.