EB5 visa with hotel investment. (closed business purchase)

[stsintx]

We are planning to move our family to US. I am an American citizen so is my older brother. We will be petitioning for parents to move however We have to look at some other options for our younger brother. We have about $ 4 Million dollars to invest into a hotel businesses. My question is, Upon agreement with seller who will shut down his hotel business and file it as a closed business. Then my brother can file EB5 visa application on a closed hotel business with property and show that he will be hiring about 12 people to run a 110 room hotels business. with new franchise flag and bells and whistles. Can this be done? Logically there is nothing illegal here. Seller just decided to shut down his business because He cant run it anymore or decided to retire so he caused his employees to lose their jobs.

 

[hazelickes]

You can find Information of EB5 & about the investment on a business here.

Disclaimer: The information provided is of a general nature and is not intended to be construed as legal advice or creating an attorney-client relationship with Law Firm.

 

[visadelight]

EAD to EB5 IS IT POSSIBLE

We are planning to move our family to US. I am an American citizen so is my older brother. We will be petitioning for parents to move however We have to look at some other options for our younger brother. We have about $ 4 Million dollars to invest into a hotel businesses. My question is, Upon agreement with seller who will shut down his hotel business and file it as a closed business. Then my brother can file EB5 visa application on a closed hotel business with property and show that he will be hiring about 12 people to run a 110 room hotels business. with new franchise flag and bells and whistles. Can this be done? Logically there is nothing illegal here. Seller just decided to shut down his business because He cant run it anymore or decided to retire so he caused his employees to lose their jobs.

Hello sir,i have a slightly different situation,i am on EAD,EB3 category,pharmacist,my husband also on EAD and wants to buy a Motel,does he have any ways to do this,either change to EB5 ? OR what else can be done

 

[visadelight]

Ead and motel business

hELLO GUYS,ANY INPUTS ,HOW TO START MOTEL BUSINESS ON EB3 EAD

 

[BigJoe5]

We are planning to move our family to US. I am an American citizen so is my older brother. We will be petitioning for parents to move however We have to look at some other options for our younger brother. We have about $ 4 Million dollars to invest into a hotel businesses. My question is, Upon agreement with seller who will shut down his hotel business and file it as a closed business. Then my brother can file EB5 visa application on a closed hotel business with property and show that he will be hiring about 12 people to run a 110 room hotels business. with new franchise flag and bells and whistles. Can this be done? Logically there is nothing illegal here. Seller just decided to shut down his business because He cant run it anymore or decided to retire so he caused his employees to lose their jobs.

This is a complex question to answer. More details are required. Matter of Soffici, 22 I&N Dec.158 (AAO 1998), tells of an EB-5 investor who simply bought a Howard Johnson's Motor Lodge. While what you describe is a situation where the name would change, it seems that little else would. The options available are to make the case that it is a troubled business, OR the new owner will expand by 40% in the number of employees (equaling at least a net growth of 10 new full-time jobs, OR the existing business will be SIGNIFICANTLY restructured.

From Soffici:

PETITIONER HAS FAILED TO ESTABLISH
A NEW COMMERCIAL ENTERPRISE.

8 C.F.R. § 204.6(h) states that the establishment of a new commercial
enterprise may consist of:

(1) The creation of an original business;
(2) The purchase of an existing business and simultaneous or subsequent
restructuring or reorganization such that a new commercial enterprise results; or
(3) The expansion of an existing business through the investment of the required
amount, so that a substantial change in the net worth or number of employees
results from the investment of capital. Substantial change means a 40 percent
increase either in the net worth, or in the number of employees, so that the new
net worth, or number of employees amounts to at least 140 percent of the pre-
expansion net worth or number of employees. Establishment of a new commercial
enterprise in this manner does not exempt the petitioner from the requirements of
8 C.F.R. § 204.6(j)(2) and (3) relating to the required amount of capital investment
and the creation of full-time employment for ten qualifying employees. In the case
of a capital investment in a troubled business, employment creation may meet the
criteria set forth in 8 C.F.R. § 204.6(j)(4)(ii).


8 C.F.R. § 204.6(e) states that:

Troubled business means a business that has been in existence for at least two
years, has incurred a net loss for accounting purposes (determined on the basis of
generally accepted accounting principles) during the twelve- or twenty-four month
period prior to the priority date on the alien entrepreneur’s Form I-526, and the loss
for such period is at least equal to twenty percent of the troubled business’s net
worth prior to such loss. For purposes of determining whether or not the troubled
business has been in existence for two years, successors in interest to the troubled
business will be deemed to have been in existence for the same period of time as the
business they succeeded.

Although Ames Management was incorporated in 1997, it is the jobcreating
business that must be examined in determining whether a new commercial
enterprise has been created. The Howard Johnson’s Motor Lodge purchased
by Ames Management had been in operation for approximately 24 years and
was an ongoing business at the time of purchase; Ames Management, doing
business as Howard Johnson Hotel, has merely replaced the former owner.

The petitioner has provided no documentation whatsoever to establish
that the Howard Johnson’s was a “troubled business,” as defined above,
prior to his purchase. He also does not claim that he will expand the hotel
by 40 percent as provided in 8 C.F.R. § 204.6(h)(3). The petitioner has not
shown the degree of restructuring and reorganization required by 8 C.F.R.
§ 204.6(h)(2); the hotel has always been a Howard Johnson and is still a
Howard Johnson today. A few cosmetic changes to the decor and a
new marketing strategy for success do not constitute the kind of
restructuring contemplated by the regulations, nor does a simple change
in ownership. Therefore, it cannot be concluded that the petitioner has
created a new commercial enterprise.


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