Identifying Suitable Enterprises for EB-5 Investments

The EB-5 program stipulates that investments must be directed towards new commercial enterprises, which are business entities established after November 29, 1990, with the intention of conducting lawful commercial activities. A wide range of businesses from diverse industries can qualify, such as real estate development, hotel operations, assisted living facilities, manufacturing, research and development, retail, and services.

However, for a business to be a viable candidate for the EB-5 program, it needs to have the capacity to create or preserve at least 10 full-time jobs for U.S. workers per EB-5 investor. Potential candidates often include farms, aquaculture projects, forestry projects, lumber mills, manufacturing plants, research facilities, restaurants, hotels, community centers, nursing homes, and hospitals.
Three Essential Features of EB-5 Projects

The primary objective of the EB-5 program is job creation, hence, projects that can readily create or preserve the required number of jobs are the most suitable. Typically, these are new construction projects that generate ongoing operational jobs, leading to a net increase in local employment.

New Construction: Each EB-5 investor’s new commercial enterprise must create or preserve at least 10 new, permanent full-time jobs for eligible workers. Demonstrating to the U.S. Citizenship and Immigration Services (USCIS) that a business is distressed and has preserved the necessary number of jobs can be challenging. Therefore, projects involving new construction or the rehabilitation of vacant structures are often more successful. If the construction is expected to last more than two years, the jobs directly created by the construction project will count towards the employment creation requirement. For EB-5 projects sponsored by regional centers, even if construction takes less than two years, the construction expenditures can be used to calculate indirect and induced jobs.

Suitable Enterprises for EB-5 Investments

Ongoing Operations: New construction projects that also generate operational jobs through business revenue are well-suited for the EB-5 program. They create both construction and operational jobs. For projects like residential property construction, which typically do not create operational jobs, almost all job creation must occur through construction.

Identifying Suitable Enterprises for EB-5 Investments

Net Increase in Jobs: An important factor for an EB-5 project is whether the business will genuinely create new jobs. If a new shopping center is built near an existing mall and causes the mall’s stores to close, the net increase in jobs may be significantly less than required. USCIS requires an economic report demonstrating that the new EB-5 project will not result in job losses in the area.

Identifying Suitable Enterprises for EB-5 Investments

At MarketSpace Capital, our projects create dozens of jobs through newbuild construction and post-construction activities in industries such as retail, hospitality, property management, and healthcare.  Contact MarketSpace Capital today if you are interested in an EB-5 investment as a means to secure your visa.

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MarketSpace Capital, LLC is a Houston, Texas-based private equity real estate development firm focused on ground up developments and value-add investments throughout the United States.

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Disclaimer: *For sold properties, actual sales price is reported. For active investments, the Estimated Current Value is based on the Managing Member’s estimate of current value. Recent acquisitions are generally valued at the acquisition price. Values may be internally prepared. This web-page/website is for informational purposes only and is qualified in its entirety by reference to the Confidential Private Placement Memorandum (as modified or supplemented from time to time, the “Memorandum”) of any offering of MarketSpace Capital.