Does EB-5 apply to investments in cooperatives?

It depends on the structure. The EB-5 program does not automatically disqualify cooperatives, but it does not accept them outright either. What matters is whether the cooperative operates, in practice, as a for-profit commercial enterprise that creates jobs.

The program requires an investment in a new commercial enterprise with a model oriented toward economic growth and the creation of jobs for workers in the United States. Many cooperatives are organized differently, without a profit focus or without generating jobs in the typical manner, and that is where eligibility may be called into question.

For this reason, the analysis is always individual: the bylaws, the corporate structure, and the commercial objectives of the cooperative all factor in. If the cooperative is set up in a way that satisfies the criteria of a for-profit, job-creating business, there is, in principle, a path to qualifying under EB-5.

• The cooperative must operate as a for-profit business.
• It must generate the jobs required by the program.
• Bylaws and corporate structure are evaluated on a case-by-case basis.

Because the interpretation is complex, it is worth assessing feasibility with specialized legal counsel and confirming the current requirements with USCIS before investing.

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Victoria Harper

Editor-in-Chief

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As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.