What Types Of Businesses Can Raise EB-5 Capital?

Does a business have to be of a certain size, located in a certain area, or specialize in a certain industry to raise EB-5 capital? The answer is no.

There are no limitations on the size, type, or location of a business. However, it must be a for-profit business and any EB-5 investors' funding must be "at-risk". It's important for any business owner or project developer to understand how the EB-5 Program works before investing time into trying to raise capital.

An EB-5 immigration attorney can answer any questions regarding the nitty-gritty details and forms involved, but here are the basics.

In order for a business to raise EB-5 capital they must sponsor EB-5 investors for their green cards.

There are two types of EB-5 investors. One type of investor is interested in direct investment in a U.S. business as well as obtaining a green card. The other type of investors (the majority), are interested solely in the investment solely as a tool to obtain a green card.

With this in mind, it's usually difficult for small businesses to attract EB-5 investors because the majority of these investors are part of the second type, people only interested in the investment as a tool to obtain a green card. In order for them to be approved for a green card by USCIS, these EB-5 investors must be credited with creating the requisite 10 jobs each. A small business, therefore, is limited in the amount EB-5 investors they can take on by the number of jobs their businesses can create. These small businesses also typically will have less of a job buffer than larger businesses, making them a more risky investment for EB-5 investors.

The EB-5 Program is job creation program. EB-5 investors must create jobs in order to receive a green card.

One way businesses of any type can raise EB-5 capital is by working with a regional center. A USCIS approved and designated regional center can take care of many of the documents and forms. They also can typically handle larger capital raises than a business working independently. In order to work with a regional center, businesses must do their due diligence and make certain that the regional centers they're interested in are approved to handle their business industry as well as their geographic location.


eb5 ad