Question:
How can I invest in two businesses? I want to invest in an area of the United States with a minimum $1 million investment requirement, but I want to invest in two business, with a $500,000 investment in each business. How can I invest in both businesses to meet my $1 million minimum investment amount? What problems might I face?
Answers:
You may be able to create or find a new commercial enterprise with a portfolio of businesses (including the two you are considering) that will make loans or equity investments into those businesses. That relationship can be sufficient for the new commercial enterprise to receive credit for the jobs created in those businesses receiving the loan or investment. Please also note that if the business is located in a targeted employment area (areas of high unemployment) or a certain rural area, the investment amount is only $500,000! Retaining EB5 counsel who can coordinate with an EB5 economist will be very beneficial to someone in your position.
The best option may be for the new commercial enterprise to be created in the form of a holding company. The holding company will wholly own both subsidiaries. The funds will be placed in the holding company that will in turn disburse the funds into each subsidiary. It is important to note that the subsidiaries should be create the requirement number of qualified jobs.
First retain the services of an experienced EB-5 attorney. One way to invest in two businesses at the same time is to Directly invest the 1 Million dollars in a Holding Company which wholly owns two subsidiaries in the same geographical area. The investment funds can be committed amongst the two subsidiaries operating two different business activities and also the creation of employees can be dispersed amongst the two subsidiaries.