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. 


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