What is the minimum job requirement for an EB-5 investment in a failing business?
My Israeli friend, who has a Romanian wife and three small children, would like to relocate to the U.S. from Romania and is considering the EB-5 program. He has a BS in Business Administration from a U.S. university and was the CFO of two major casinos for eight years, one of which he was also the CEO. He is a consultant in Europe at the moment. He has no U.S. employer and would prefer to start or buy a business. If he decides to save a failing business as an investment option, I understand there is no 10 full-time employee requirement, only that the business maintain the same number of employees as before, is that accurate? What if the business only had one employee and it saw losses of 20 percent over the last two years? What documentation is needed to prove that a business is failing?
The first step is to retain the services of an experienced EB-5 attorney and economist. These professionals will review and analyze the troubled business and determine the legal requirements for maintaining the required employment creation. The basics show that 10 jobs either have to be created or maintained per investor. The required job creation analysis can either be based upon a direct EB-5 investment or an EB-5 regional center investment.