EB-5 Lawyer: The Pros & Cons Of Investing in a Troubled Business

When you are considering investment opportunities through the EB-5 investment visa program, one of your options will be to invest in a troubled business rather than creating an entirely new business or investing in a regional center. Why would someone choose to invest in a struggling business? And what are the pros and cons of making that choice? Let’s take a closer look. 

 

The benefits of investing in a troubled business through the EB-5 program include: 

 

  • The business already exists; you do not have to start from scratch. 
  • You are not responsible for creating ten new jobs; you are only responsible for keeping ten people employed. 
  • Because the business is in trouble when you invest, you could get a good deal on your investment. 
  • You have the opportunity to turn the business around and make a profit. 

 

The risks of investing in a troubled business through the EB-5 program include: 

 

  • Investing $500,000 or $1 million in a troubled business may be too risky for some. 
  • If the business collapses within two years of your investment, you could lose your investment and your chance at permanent residency. 
  • Unlike a new business, your business is already in trouble and may need significant restructuring or reimagining. 
  • Investing in a troubled business could add stress to your day-to-day life. 
  • You are responsible for maintaining the jobs of at least ten people. 
  • There may be a fatal flaw in the floundering business’ business plan. 
  • Your efforts alone may not be enough to save the business. 

 

As you can see, taking on a troubled American business can be risky but also rewarding. It certainly takes a specific type of businessperson or entrepreneur to take on the challenge of a struggling business and invest in a floundering venture. 

 

Would you like to learn more about your different investment options connected with the EB-5 investor visa? Or do you have more questions about what it might be like to invest in a troubled business in order to work and live indefinitely in the United States? Call our California immigration lawyers at the Law Offices of Vaughan de Kirby to get started with a free, private consultation. 


EB-5 Regional Center Program Ends 9/30/17

Congress has extended the current Regional Center program to September 30th, 2017, at which time it will sunset unless extended. We anticipate future legislation that will call for an increased investment amount and more stringent requirements. For this reason, we recommend to our clients that they take action under the current law if at all possible.

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<span>EB-5 Due Diligence Workbook:</span> Ten Critical Steps to An Informed Decision

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Complete Guide To The EB-5 Green Card: Critical Knowledge For Investors Who Want To Make The Best Decisions For Themselves And Their Families

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