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.