EB-5 – So Misunderstood: Size Doesn’t Matter By Gregory Finkelson
While the EB-5 investment visa program continues to gain visibility and popularity, much of the program remains misunderstood. One of the biggest misunderstandings is that the size of the project for which the investment will be used matters. That is simple not true.
Pooling the investments of many individual EB-5 investors has become increasingly popular for funding multimillion dollar projects. There is no upper limit to the number of investments that can be combined. The math is simple. If you need $30 million, you need 60 investors.
Smaller ventures, however, still don’t seem to understand that they, too, can use EB-5 investments, even if their project is so small that it requires only one $500,000 investment.
The issue of size is only relevant when it comes to the number of jobs that must be created by each $500,000 investment. Whether the project is large or small, ten jobs must be created per each participating investor. Once again, the math is simple. Using the funds from a single investor requires that only ten jobs be created. This is ideal for small businesses, especially restaurants. On the other hand, 60 investors means that 600 jobs must be created.
Size really doesn’t matter. Job creation does. And, only in that sense is bigger also better.
To learn more about how to put the EB-5 investment visa program to work for you, contact Dr. Gregory Finkelson at American Corporate Services or call 415-682-2550. To order my book, How to Find Chinese Investors, Agents & Clients for Your EB-5 Projects & Services - A Practical Guide for Regional Centers, Attorneys, Developers and Businessmen, click here.