Can I Apply EB-5 Capital to Multiple Companies Under a

by Phil Cohen

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Not every EB-5 project is a giant, multimillion dollar development. In fact, we see more and more so-called 'direct' or 'stand-alone' EB-5 projects in the market today. One question that is commonly asked is whether EB-5 funds can be applied to more than just one business under the same project. The short answer to this question is yes. USCIS recently clarified that this approach is possible, however in the May 30 memo, some additional clarity was provided. As a result of this memo, in conjunction with previous guidance, it can now be taken that in a direct or stand-alone project EB-5 capital can be applied to a group or portfolio of subsidiary companies, provided that these companies are wholly owned by the project company. In the case of an EB-5 regional center, EB-5 money can be applied to a group of unrelated companies. This, of course, is a very high-level statement. The mechanics of developing an EB-5 project in this manner should be reviewed in close consultation with a qualified and experienced EB-5 attorney. Phil Cohen is the lead author of The EB-5 Definitive Guide and President of Strategic Element, a firm focused on business plans for EB-5.

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