Does the EB-5 apply in the case of investment in cooperatives?

The United States EB-5 program is an alternative for foreign investors who wish to obtain permanent residence through investments in businesses that create jobs for American workers. This type of visa requires that the investment be made in a commercial entity presenting a profit-oriented business model and that contributes measurably to the country’s economy, generating at least 10 full-time jobs. In the specific case of cooperatives, eligibility for the EB-5 may be questioned, as many cooperatives are not traditionally structured as for-profit companies or as enterprises that typically aim at direct job creation. For an investment in a cooperative to be considered under the EB-5 requirements, it is necessary to demonstrate that it operates as a qualified ‘new commercial enterprise’ – that is, it must have a structure that allows economic growth and the generation of jobs required by the program. It is important to emphasize that each situation must be evaluated individually, considering the cooperative’s structure, bylaws, and business objectives. If the cooperative is organized so as to meet the criteria of a commercial enterprise that creates jobs and operates for profit, there is, in theory, the possibility to fit it within the EB-5. However, this interpretation can be complex and involves a detailed analysis of the documents and corporate structure involved. For these reasons, the importance of strictly following United States immigration laws and seeking specialized advice to analyze the feasibility of the investment is reinforced. Consulting experienced professionals can avoid risks of mistaken interpretations and help identify possible scams or misleading promises of quick results. Remember: full compliance with the EB-5 legal requirements is fundamental for any investment aiming at obtaining permanent residence in the country.

Victoria Harper

Editor-in-Chief

Meet the author

Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.