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[Q] Bunch of related questions from a potential EB-5 investor for direct EB-5 case.


[Q] The questions are as follows:

1) if I invest $500k where unemployment is 12%, Is it consider part of "Targeted Employment area"?

2) if I invest in Trouble Business where they lost 20% revenue, I still have to create 10 full time job.?

3) If I buy Motel for example & run through the property management company & management company will create 10 jobs in my investment will be still qualify on EB-5 category?

4) I am *** citizen & having E2 in my business in **, interested buying business under same corporation for EB-5 & would like to invest required $500k would work?

5) What they mean by Expansion or Re-structuring the existing entity?

6) what is your opinion on investing in Regionl Centers ? Since the investment is at "Risk", I don't see return on investment.

I would appreciate your response.

Answers are as follows:

1) if I invest $500k where unemployment is 12%, Is it considered part of "Targeted Employment area"?

Answer: An area is a TEA only if an authorized state agency or governmental body -- whatever that may be for each state -- says the area is a TEA. To be considered a TEA, the area must be either "rural" or have a "high unemployment rate".

2) if I invest in Trouble Business where they lost 20% revenue, I still have to create 10 full time job.?

Answer: If a new commercial enterprise qualifies as a Troubled Business, then you can "preserve" 10 full-time jobs, rather than create them anew.

3) If I buy Motel for example & run through the property management company & management company will create 10 jobs in my investment will that still qualify on EB-5 category?

Answer: Yes, as long as the property management company is the new commercial enterprise into which you invest the money. Basically, in your contemplated investment, you would have to form a holding company that operates as a property management company and then you would have to invest into this holding company which would also purchase a motel either by itself or through a wholly-owned subsidiary.

4) I am *** citizen & having E2 in my business in **, interested buying business under same corporation for EB-5 & would like to invest required $500k would this work?

Answer: Yes, as long as EB-5 requirements are met.

5) What they mean by Expansion or Re-structuring the existing entity?

Answer: You have to expand or restructure an existing business ONLY IF the business has been in existence before November 29, 1990. You should review the "Easy as EB-5" section above.

6) what is your opinion on investing in Regionl Centers ? Since the investment is at "Risk", I don't see return on investment.

Answer: You can't make a good profit on most regional centers, but they do have advantages.

I would appreciate your response