You are hereFrequently Asked Questions / Direct, Individual EB-5 Cases / [Q] Bunch of related questions from a potential EB-5 investor for direct EB-5 case.
[Q] Bunch of related questions from a potential EB-5 investor for direct EB-5 case.
[Q] The questions are as follows:
1) if I invest $500k where unemployment is 12%, Is it consider part of "Targeted Employment area"?
2) if I invest in Trouble Business where they lost 20% revenue, I still have to create 10 full time job.?
3) If I buy Motel for example & run through the property management company & management company will create 10 jobs in my investment will be still qualify on EB-5 category?
4) I am *** citizen & having E2 in my business in **, interested buying business under same corporation for EB-5 & would like to invest required $500k would work?
5) What they mean by Expansion or Re-structuring the existing entity?
6) what is your opinion on investing in Regionl Centers ? Since the investment is at "Risk", I don't see return on investment.
I would appreciate your response.
Answers are as follows:
1) if I invest $500k where unemployment is 12%, Is it considered part of "Targeted Employment area"?
Answer: An area is a TEA only if an authorized state agency or governmental body -- whatever that may be for each state -- says the area is a TEA. To be considered a TEA, the area must be either "rural" or have a "high unemployment rate".
2) if I invest in Trouble Business where they lost 20% revenue, I still have to create 10 full time job.?
Answer: If a new commercial enterprise qualifies as a Troubled Business, then you can "preserve" 10 full-time jobs, rather than create them anew.
3) If I buy Motel for example & run through the property management company & management company will create 10 jobs in my investment will that still qualify on EB-5 category?
Answer: Yes, as long as the property management company is the new commercial enterprise into which you invest the money. Basically, in your contemplated investment, you would have to form a holding company that operates as a property management company and then you would have to invest into this holding company which would also purchase a motel either by itself or through a wholly-owned subsidiary.
4) I am *** citizen & having E2 in my business in **, interested buying business under same corporation for EB-5 & would like to invest required $500k would this work?
Answer: Yes, as long as EB-5 requirements are met.
5) What they mean by Expansion or Re-structuring the existing entity?
Answer: You have to expand or restructure an existing business ONLY IF the business has been in existence before November 29, 1990. You should review the "Easy as EB-5" section above.
6) what is your opinion on investing in Regionl Centers ? Since the investment is at "Risk", I don't see return on investment.
Answer: You can't make a good profit on most regional centers, but they do have advantages.
I would appreciate your response
