EB-5 Q&A: What qualifies as an EB-5 troubled business?



A troubled business is defined as a business that has been in existence for at least two years, has incurred a net loss for accounting purposes during the twelve-or twenty-four month period prior to the priority date on the foreign investor’s I-526, and the loss for such period is at least equal to twenty percent of the troubled business’s net worth prior to such loss. You may present your business tax returns, accounting records to show the qualification. In the case of a troubled business, 10 jobs must be preserved, created, or some combination of the two. This means if you currently have 8 full time employee, the new investment need to create additional 2.