Question:
How can EB-5 investors pool money? What is the process for EB-5 investors to pool money to invest in multiple businesses across several industries? What are the risks and benefits of pooling money like this, and what are the restrictions? Also, how can an investor withdraw his or her initial investment after two years to invest in other businesses?
Answers:
You can create an investment fund as the new commercial enterprise that makes loans or equity investments into a number of job creating entities. Current policies allow for business portfolios within the EB-5 framework. Exiting an EB-5 investment would need to be after the removal of conditions to permanent residency, but many projects have a 5-6 year exit.
The pooling of investors funds can legally occur in a Direct EB-5 and EB-5 Regional Center infrastructure. The best advice is to retain an experienced EB-5 attorney to advise you on how to set up an EB-5 structure to be EB-5 compliant and reach your EB-5 goals. The timing of the commitment of these funds will depend on how and when the jobs will be created and whether each multiple business should be treated as a separate or one EB-5 project.