‘Troubled Business’ designation requirements
An EB-5 investor may choose to invest in a new commercial enterprise that is a troubled business; as such, investors must preserve or create 10 eligible jobs as per program requirements.
Each investor must prove that the number of existing employees in the troubled business will be maintained at no less than the pre-investment level for a period of at least two years.
For a new commercial enterprise to be considered a troubled business, it must meet the following criteria:
Has existed for at least two years
Incurred a net loss for accounting purposes during the 12-month or 24-month period prior to the filing date of the investor I-526 or I-526E petition
Incurred a loss for the same period of at least 20 percent of the business’s net worth prior to the loss