Questions and Answers: Diversification

Question: Can an EB-5 Investor in a Regional Center divide his money into 2 or more businesses so long as each business satisfies EB-5 requirements? Can he do this in EB-5 Direct?

Response: Yes, according to 204.6(e): Commercial enterprise means any for-profit activity formed for the ongoing conduct of lawful business including, but not limited to, a sole proprietorship, partnership (whether limited or general), holding company, joint venture, corporation, business trust, or other entity which may be publicly or privately owned. This definition includes a commercial enterprise consisting of a holding company and its wholly-owned subsidiaries, provided that each such subsidiary is engaged in a for-profit activity formed for the ongoing conduct of a lawful business. This definition shall not include a noncommercial activity such as owning and operating a personal residence.

Taken from USCIS Quarterly EB-5 Stakeholders Meeting on June 30, 2011