There are many unique visa programs that help professionals and investors legally enter the United States. Some of these programs are available to employees. Others allow investors and entrepreneurs to secure visas.
The EB-5 visa program has long attracted successful individuals to the United States. Those with resources to invest in domestic companies can apply for an EB-5 visa. Provided that they make a minimum financial commitment and create new full-time jobs, qualifying foreign nationals can request an EB-5 visa because of their domestic investment.
Frequently, those seeking EB-5 visas want to start new businesses. They have a business plan for an independent company or intend to invest in a franchise company. In some cases, immigrant investors might want to help improve an existing business. They may be eligible for an EB-5 visa if they invest in a troubled company.
What are the rules when investing in existing companies?
The basic requirements for an EB-5 visa include job creation. Usually, foreign investors are only eligible for an EB-5 visa if they create at least 10 new full-time positions for qualifying employees in the United States. However, the rules are slightly different for those investing in a troubled business.
The United States Citizenship and Immigration Services (USCIS) defines a troubled business as an organization that has existed for at least two years and that has reported a new loss during the last year or two years. That loss usually needs to be substantial. Typically, it must represent at least 20% of the organization’s net worth before it began experiencing issues.
Investors who provide capital and practical support for troubled businesses could qualify for EB-5 visas on the basis of preserving or maintaining existing jobs that could disappear if the company failed. Foreign investors seeking an EB-5 visa in return for supporting a troubled business have to show that the company should maintain the same number of employees for at least two years after their investment.
Those looking at ways to turn existing capital into a source of income and an immigration opportunity may need help evaluating their options. Discussing investment opportunities and EB-5 visa rules with a skilled legal team can be a good starting place for those hoping to invest in a domestic business.
This information is not intended to constitute legal advice nor does it create an attorney-client relationship between Law Offices of Robert P. Gaffney and anyone else. This information is not intended to be used as a substitute for specific legal advice based on an individual or organization’s particular facts and circumstances, and it should not be considered as such.
