EB5 Reauthorization

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Published on 26 Jan 2022 ● Time to read 4 min read ● Last update on 25 Jul 2023

This Article Is Based On A Video Originally Recorded On Visa Franchise Review Of Investor Visa Businesses

Patrick Findaro here, co-founder at Visa Franchise. Since we started Visa Franchise in 2015, nearly seven years ago, the EB5 reauthorization took place more than five times over this period. And we have been working with E2 Visas for a while too.

So this was really one of the first times that there’s been a significant lapse in the program for the Regional Center Pilot Program.

From June 2021 up until now, January 2022, you can not invest in a EB5 Regional Center Program. So that’s where there’s a pooled investment vehicle, and you’re able to count. Not just the direct jobs like EB-5 direct and if you invest in a franchise. But also the indirect and induced jobs.

It makes it a lot easier in terms of counting those jobs. And it doesn’t have to be as labor intensive. As, say, a preschool or a fast food business to be eligible for the EB5 visa.

Plan B: Immigration Attorney

Now, the EB5 might be re-authorized next month, February 2022. We have clients that are actually doing a plan B, where they have an I-526 approved. Or they’re pending the I-526 petition based on our EB-5 Regional Center Investment and they want to have a plan B in place.

So what I suggest for the plan B, and, again, work closely and involve your immigration attorney from today. Is a potential E2 Visa Franchise bridge.

Where you can purchase a franchise, and you got to look at franchises that are going to have a high resale value. Because you might only need this for three, four years while you wait for the EB-5 program.

So, with this E-2 Visa Franchise bridge, you can purchase a franchise. And ideally, it’s one that has a good projected resale value. Because you might only need this option for six months, a year, two years, three years, and you might not want to keep that business.

Buy a franchise to get the EB-5

So the key is having a franchise that you’re comfortable with, that’s going to be around. That has a low failure rate, and that you can have a good resale value. You can explore franchise opportunities on our sister company website.

Clients always ask us as we’ve had a lot of clients that have got the E2 visa and then get a green card, could be through the EB5 or another green card category.

And what do you do when you want to sell? Well, we recommend you go to the franchisor first. Then you go to some franchisees.

You can come back to us. And then potentially a business broker might be the best one to help you if a franchisor doesn’t want to buy it back. Or another franchise in the system doesn’t want to buy it from you. A business broker can list that business for sale.

E2 Visa: A second plan B

If you’re waiting for the EB5 visa, they could re-authorize it if you made that investment through the Regional Center Program next month, February 2022. However, especially, if you’re not just a single guy or a single girl, you might want to have a plan B. Because you have family, your kids, and an E2 visa is a good option.

We like the franchise option, because it’s kind of cookie-cutter. It’s set, you have the data, you have the information. It’s more plug and play. But you can also explore buying or starting your own business if you have an idea, and you’re confident about that business.

However, be aware. Buying an existing business for your E2 visa, it’s generally going tof take one to two years. So that might defeat the purpose if you’re looking to have a bridge solution. That might be anywhere from six months to three years.