EB-5 Investors

Immigrant Investor visa (EB-5) are for capital investment by foreign investors in new commercial enterprises in the United States which provide job creation based on proposals for promoting economic growth.

All EB-5 investors must invest in a new commercial enterprise that was established after November 29th, 1990. If the commercial enterprise was established on or before November 29 1990, then it must be restructured or reorganized in a way to create a new commercial enterprise, or it must be expanded through the investment, resulting in at least a 40% increase in the net worth or number of employees. Commercial enterprise means any for-profit activity formed for the ongoing conduct of lawful business.

There are job creation and minimum capital investment requirements. Immigrant investors must establish that they are the legal owner of the capital invested. Capital can include their promise to pay (a promissory note) under certain circumstances.

As of date, the minimum investment required is $1.8M in High Investment Areas, and $900K in Targeted Investment Areas (TEAs). All values are in USD.

A TEA can be, at the time of investment, either:

• A rural area; or
• An area that has experienced high unemployment (defined as at least 150% of the national average unemployment rate).

A rural area is any area other than an area within a metropolitan statistical area (MSA) (as designated by the Office of Management and Budget) or within the outer boundary of any city or town having a population of 20,000 or more according to the most recent decennial census of the United States.

The job creation requirement stipulates that an EB-5 investor must invest the required amount of capital in a new commercial enterprise that will create full-time positions for at least 10 qualifying employees. For a troubled business, the EB-5 investor may rely on job maintenance. The investor must show that the number of existing employees is, or will be, no less than the pre-investment level for a period of at least two years.

There are many more conditions and restrictions with the EB-5 category investors however, if the intent is to succeed in the new enterprise, and the investors believe in their enterprise, all the requirements can be easily met.

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