These are the primary EB-5 Regional Center investment advantages.
When an EB-5 investor selects the EB-5 Regional Center Program, they are choosing to make an investment through a government-approved Regional Center rather than investing directly into a new commercial enterprise. While both paths offer distinct benefits, the EB-5 Regional Center investment path is far more popular, here’s why.
The focus is on the EB-5 green card.
- Investors select the EB-5 regional center investment option for its primary focus on getting the investors their green cards. The Regional Center Program helps investors reach their green card goals by mitigating risk in a few ways:
- Business and managerial knowledge is not a barrier for investors.
- Investors can invest in an already established business.
- Regional centers have easier job creation requirements.
- Investors can take on a policy formation role instead of managing the day to day operations of the business.
- Regional centers with government pre-approval may mean investors have a lower burden of evidence when it comes to proving that a new commercial enterprise was established, that job creation was fulfilled, and that the managerial requirements were satisfied.
Lower investment amount through TEA.
- Both program pathways can select projects located in targeted employment areas (TEA) to obtain the reduced minimum investment amount of $900,000, but Regional Centers appear to take advantage of TEA more often.
Easier job creation requirements.
- All EB-5 investors must be credited with the creation of 10 full-time permanent jobs for U.S. workers, but investors in the Regional Center Program can count certain types of jobs that Direct Investment Program investors cannot count. Investors in the Direct Investment Program can only count direct jobs while Regional Center Program investors can count direct, indirect and induced jobs.
- In order to obtain the lower minimum investment amount, investors must select a project located in an economically depressed area and they may not want to live near their project. Regional Center Program investors are not required to manage the day to day operations of their business and can therefore live, work, study and travel anywhere in the U.S.
About the Direct Investment Program
The Direct Investment Program is a good option for entrepreneurial investors looking to obtain green cards while expanding their businesses to the U.S. The main upside of this pathway for EB-5 investors is to control they have over their investment. Through the Direct Investment Program, investors can take on more risk with the goal of reaching higher returns on their investment.
The potential downsides may include:
- Limited project location options and therefore, not qualifying for the TEA reduced investment amount.
- The investor has stricter managerial requirements and therefore may need to live near their investment.
- The increased opportunity for higher returns on their investment also means that there is greater chance for loss, too.
- Stricter job creation requirements; investors in the Direct Investment Program can only count direct jobs.
Why Choose EB-5?
Investors in the EB-5 Program may receive U.S. green cards and ultimately become eligible for U.S. citizenship. Living in the U.S. with an EB-5 visa has many advantages including:
- Green cards for an investor’s spouse and all their unmarried children under the age of 21 years
- Access to world-class educational institutions
- Business and investment opportunities
- No employment restrictions
- Increased travel freedoms
- New York
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