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Direct, Individual EB-5 Cases
Direct, Individual EB-5 Cases
[Q] What are the first things I have to ascertain when pursuing a direct, individual EB-5 case?
[Q] What are some of things I have to ascertain or find out when I want to establish or purchase a business and pursue a direct, individual EB-5 case?
The first thing you have to determine or ascertain is whether the U.S. business qualifies as a TEA area. This is sometimes not an easy thing to do but is important, because if it's a TEA, then only $500,000 USD investment need to be made.
[Q] Can I create jobs indirectly for direct, individual EB-5 case?
No, all jobs have to be created directly in a direct, individual EB-5 case.
[Q] Can I pursue an EB-5 case where I invested and created jobs several years ago in the past?
This question was answered by USCIS. See below link.
http://eb-5center.com/node/517
This means even if your previous investment was for E-2 visa purpose, as long as you meet the requisite investment amount and new job-creation, you should be able to meet the EB-5 requirements.
[Q] Can I invest $1 MM to buy a building or house and qualify for an EB-5 case?
No, for two reasons. First, just buying a real estate and holding it is not considered to be a commercial activity. Second, how are you going to create 10 new, full-time positions through such investment?
However, if you purchased a shopping center or a golf course and added 10 new, full-time jobs within 2 years, then, yes, no problem.
[Q] Can I invest in an existing business to create a new commercial enterprise?
Yes, as long as the business was established after November 29, 1990. But you have to remember that you cannot just take over the existing employees and meet the requirement to create 10 new, full-time positions, not including yourself and your family members.
[Q] What are the advantages and disadvantages of a direct, individual EB-5 case vs. regional center EB-5 case?
Generally speaking, here are advantages of direct, individual EB-5 case over a regional center based EB-5 case.
1. You have more control (and responsibility) over the direction of the U.S. business which acts as a new commercial enterprise.
2. You can make a lot of money if the business does well.
3. You can decide when to fold or sell your interest in the business.
[Q] Can I participate as a minority interest holder and invest in or create a U.S. business for EB-5 case?
Yes, unlike an E-2 visa case, you can be a minority interest holder or owner of a U.S. business. For example, you can own and operate a U.S. business as a 10% owner, along with a U.S. citizen who owns the remaining 90% interest in the business. The other investor can be green card holder or another alien EB-5 investor also.
[Q] Why do EB-5 practitioners often say that direct EB-5 cases are more difficult to prepare and submit?
This is because for direct, individual EB-5 cases, project documents must also be prepared from scratch, tailored to the needs of the specific case. In addition, the alien EB-5 investor probably has to negotiate through business attorney or another professional many business and investment transactions before a direct, individual EB-5 case can be filed.
[Q] Where can I find U.S. businesses that would qualify as a new commercial enterprise?
There are many business consultants, including commercial realtors and other professionals. Our office does not have a list of U.S. businesses to offer to potential EB-5 investors, although we may refer them to other professionals without incurring any liability.
[Q] Where can I find good information on direct, individual EB-5 case?
Right at this site (www.eb-5center.com) at:
http://eb-5center.com/direct_eb5
We especially recommend that you review the below site also to get a good grasp of basic concepts of EB-5 requirements.
