EB5 Project for Restaurant IndustryAn EB-5 project for the restaurant industry is an option for restaurant owners to obtain capital for developing a new restaurant. An EB5 project for the restaurant industry involves a foreign investor who is willing to invest a minimum capital for a US business. A foreign investor becomes involved in an EB-5 project to qualify for the EB5 Visa. The EB-5 Visa is an immigrant visa that requires the foreign investor to generate at least 10 full-time jobs for Americans from the EB5 project. 

The considerations for an EB-5 project for the restaurant industry include working with reliable restaurant chain developers, the security of investment, and the chances of gaining lawful permanent residence. A lawful permanent residence grants an individual the right to live and work in the United States permanently. The process of investing in an EB5 project for the restaurant food industry involves the basic application process for the EB-5 Visa and choosing the suitable EB5 project.

What is the EB5 Project for the Restaurant Industry?

An EB5 project for the restaurant (food) industry is an advantageous option to secure capital for restaurant owners. An EB-5 project is an investment made by a foreign investor in a U.S. business that generates at least 10 full-time employment for Americans. An EB5 project for the restaurant (food) industry is divided into two categories, direct investment projects, and regional center projects. A direct investment is an investment in a new US business that creates jobs directly from its operations. A regional center is a public or private economic unit that promotes economic growth in the United States.  

How Does the EB5 Project Work with the Restaurant Industry?

An EB-5 project in the food industry is initiated when a restaurant developer works with an EB5 specialist. The EB-5 specialist launches the investment process by reaching out to potential EB5 investors. An EB5 investor is a foreign investor who is seeking to obtain lawful permanent resident (green card) status in the US through the EB-5 Visa. The EB5 Visa is available to foreign investors who can invest a minimum capital into a U.S. business that creates at least 10 full-time jobs for U.S. citizens. A lawful permanent resident (green card) status allows the EB-5 Visa holder the right to permanently work and live in the United States. 

An EB5 project in the restaurant industry involves working with restaurant developers that have good reputations and operating histories. Working with experienced restaurant developers increases the likelihood that the EB5 investor can enjoy the benefits of a green card and decent investment returns. 

 

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What are the Advantages of Investing in EB5 Project to Restaurant Industry?

A foreign investor enjoys these top advantages of EB-5 project investment in the restaurant industry.

  • Sizeable cash flow. A substantial cash flow is advantageous in terms of repayment time and return on investment for the EB5 investor. Restaurants that can open within a year of construction will experience fewer problems with delayed cash flow. Direct restaurant investors can potentially see a return on their investment within the first year.
  • Sufficient job creation. Restaurants can generate enough jobs to meet the EB-5 Visa requirements. Restaurant developers employ a sizable staff due to the labor-intensive nature of restaurant projects.
  • No senior/priority loans from the bank. Restaurants are typically a joint venture between developers and investors, with no involvement from a bank. EB5 investors enjoy preferential rights in project assets that ensure the return on their principal money in the event of liquidation.

What are the Disadvantages of Investing in EB5 Project to Restaurant Industry?

These are the top disadvantages that a foreign investor should consider in an EB5 project in the food industry. 

  • Continuing employment through the Petition by Investor to Remove Conditions on Permanent Resident Status (I-829) stage. The United States Citizenship and Immigration Services (USCIS) stipulates that the jobs created by the EB-5 project should be created within 2 and a half years after filing the Immigrant Petition by Standalone Investor (I-526). The employees of the EB5 restaurant project should remain employed within the first year of filing the Petition by Investor to Remove Conditions on Permanent Resident Status (I-829).  
  • Maintaining job records through the Petition by Investor to Remove Conditions on Permanent Resident Status (I-829) stage. Maintaining the records of employee payrolls and tax forms up until the I-829 stage can be complicated. Keeping the essential employment records is heavily dependent on the restaurant developers.
  • Having limited project sources. Most EB5 projects are focused on large-scale projects such as real estate development. 

What are the Issues in Investing in EB5 Projects Related to the Restaurant Industry?

A potential issue for an EB-5 project related to the restaurant chain industry, particularly for direct investments, happens during the Immigrant Petition by Standalone Investor (I-526) stage. The filing of I-526 is the first step in the EB5 Visa application process. The EB5 investor is not allowed to enter the US during the application process which could take up to 2 years or more. The I-526 requires detailed, in-depth information about the EB5 restaurant project. A direct investment requires the investor to provide documentation and establish the business in the US during this time. The investor will need to hire staff, manage the operations, and launch the EB5 restaurant project from overseas. 

What are the Things to Consider in Investing in the EB5 Project for the Restaurant Industry?

There are 8 things to consider when investing in an EB-5 project for the restaurant chain industry. 

1. Reliable Brands

The EB5 investor should look for established restaurant developers. The investor needs to verify the history and development potential of the food brand. It is important to choose a strong and reliable restaurant developer to ensure repayment and a successful EB5 Visa application.

2. Job Protection

Job protection (cushion) is the number of jobs that go above the minimum job creation requirement of the EB-5 Visa. High job protection (cushion) is an advantage for the investor’s EB5 Visa application.  

3. Job Creation in Operations

The I-526 requires the EB5 investor to generate full-time employment for 10 US citizens. EB-5 projects for restaurant franchise industries create sufficient operations jobs that meet the job creation criterion of I-526. 

4. Direct Job Creation

An EB5 project for the food industry made via direct investment creates direct jobs. These direct jobs should be sustained through the filing of I-829 as mandated by the United States Citizenship and Immigration Services (USCIS).

5. Full Capital Stack Contributes to Job Creation

All funds raised from the total capital contribute toward the EB-5 investor’s job creation requirements. A large-scale EB5 restaurant franchise project has a high potential to result in an increased job cushion.

6. Improved Prospects for Permanent Residency

The jobs created from the EB-5 project for the restaurant industry should be maintained through the filing of I-829. I-829 grants the EB-5 Visa holder lawful permanent residence in the US.

7. Security of Investment

The USCIS requires that the EB-5 investor should make an “at risk” and substantial investment. An EB5 project for the food franchise industry generates a sizable cash flow for repayment and return on capital.

8. Structure of the Project

The typical investment needed to operate a restaurant is under $2 million. Each restaurant just needs one or two investors because project developers contribute funding to the project. 

Our page on What is an EB-5 Visa Project? gives you more detailed information on EB-5 projects.

How to Invest in an EB5 Project for the Restaurant Industry?

These are the 6 steps for investing in an EB-5 project for the restaurant industry.

  1. Conduct an initial search. Consult your immigration lawyer as you research the EB5 Visa. Make sure that the EB5 Visa is the right immigration pathway for you and your family.
  2. Choose an EB-5 restaurant project. Eligibility for the EB5 Visa requires you to invest in a US business. Determine whether a direct or regional center investment is suitable for your immigration and investment goals. 
  3. Conduct due diligence. Due diligence ensures that the EB-5 project is legal and has a low immigration risk.
  4. Invest the required capital. The minimum EB5 investment for EB5 Visa for a Targeted Employment Area (TEA) is $800,000. A Targeted Employment Area (TEA) is an area with high unemployment rates. The minimum capital for non-TEA is $1,050,000.
  5. Provide documentation. Documents needed for an EB5 Visa application include personal, project, and financial documents.
  6. Submit I-526. I-526 initiates your EB-5 petition to the USCIS. A receipt notice will be given to you indicating the priority date for your EB5 petition.

What are the Requirements for an EB5 Project for the Restaurant Industry?

These are the basic documents needed for an EB-5 Visa project for the restaurant industry.

Personal documents

  • Copy of your valid passport.
  • Copy of your old passports, if any.
  • Copy of your dependent’s (spouse and children) valid passports.
  • Copy of any prior immigration applications.
  • Household registration.
  • Documents with biographical information including birth certificate, marriage certificate from you and your dependents.
  • Local or national identification documents.
  • Arrival/Departure Notice (I-94).
  • Certified copies of any judgment, pending governmental civil or criminal actions, or private civil actions against you from any court in or outside of the US in the last 15 years.

Project documents

  • Proof that the investment will be made in a qualified EB-5 project.
  • Proof that the project is in a TEA, if applicable.
  • Evidence that the investment will create a new US business.
  • Evidence that the EB5 investor has invested in a regional center aligned with the approved regional center business plan. The letter from USCIS designating the regional center should be attached to your I-526.
  • Proof that the EB-5 hotel project will generate at least 10 full-time jobs for Americans.

Financial documents

  • Evidence of your source of funds. 
  • Evidence of business ownership.
  • Copy of all business licenses.
  • Tax return in the last 5 years.
  • Bank statements in the last 5 years.
  • Financial statements for your business/es.
  • Proof that your investment capital was obtained legally.

What Restaurants Resulted from EB 5 Investments?

Restaurants for eating out are part of the higher job-generating industries in the US. The restaurant food industry generates approximately 20 jobs per EB-5 investor because of the demand for places to eat in areas such as Miami, New York, and Las Vegas. Here we have the top 7 restaurant franchises from EB 5 investments.

  1. Slanted Door 
  2. Villa Azur 
  3. Voodoo BBQ & Grill
  4. Miami Grill
  5. Black Tap Craft Burgers & Beer
  6. Serafina Reastaurants
  7. SONIC

What are the Regional Centers that Offer EB5 Projects for the Restaurant Industry?

Major developers established their own regional centers to attract EB-5 investments. One example of a regional center for EB5 projects for the restaurant industry is Silverstein Properties. Silverstein Properties promotes their The Four Seasons Restaurant in Downtown Manhattan as an “EB-5 investment opportunity”. You can check the 632 Regional Centers approved by the USCIS on their official website.

What Other Related EB5 Projects are Available?

Other popular EB5 projects are in hotel construction, biotechnology, and real estate. EB5 Hotel Construction Projects generate enough jobs to meet the job creation criterion of the EB5 Visa due to their large-scale operations. EB5 Biotechnology Projects are one of North Carolina’s primary EB5 industries. EB5 Real Estate Projects have simple and understandable exit strategies in a well-known and mature market. 

Is an EB5 Investment Safe for Restaurant Industries?

Part of the eligibility requirements for the EB5 Visa is to make an “at risk” investment. An EB-5 project for the food industry involves gains and losses by nature. Your risk of losing money on your EB-5 project is reduced by careful planning, doing due diligence, and partnering with the correct EB-5 business. Building restaurants in areas such as Las Vegas, New York, and Miami where many people opt for going out to eat are lucrative EB5 investments that generate enough jobs. 

Are EB-5 Regional Centers Available in the Restaurant Industry?

Yes, one example of a regional center for the restaurant industry is The Four Seasons Restaurant by Silverstein Properties. 

Is there a Chance of Profit or Return on EB5 Investments?

Yes, an EB-5 project for the restaurant industry has a high potential for repayment and return on investment. The size and interest of EB5 investments continue to grow as the demand for restaurants to eat at and competition from franchisees and chains increase.