EB5 Investment
Opportunities To
Enter The United
States
The EB-5 investment program, founded in 1990, has become popular
among business people seeking a residence permit in the United States,
i.e., a green card through investment in the American economy.
Investing in American business projects allows the investor himself, their
spouse, and their unmarried/unmarried children under 21 to obtain an
immigrant visa. According to statistics, 2.5 visas will enable you to get a
green card for every investment.
Are you planning to enter the EB5 program and looking for eb5
investment opportunities? Traditionally, the EB-5 investment program
offers foreign investors two options: direct investment and investment
in regional centers. The latter option is more popular, and most of the
EB-5 visa petitions were related to participation in regional center
projects.
Let’s
understand
these
two
eb5
investment
opportunities options in detail:
EB-5 Regional Centers
Regional Centers are commercial entities licensed by the United States
Citizenship and Immigration Services (USCIS) to accept foreign
investments under the EB-5 program. Unlike direct investment under the
EB-5 program, which requires the creation of 10 jobs, the investor is not
required to hire employees directly. This allows more flexibility in dealing
with the region's unemployment problem and considers the jobs that
were created indirectly.
Until recently, investing in regional centers was one of the most popular
forms of eb5 investment opportunities. According to statistics, 95% of
EB-5 visa applications were based on investments in regional centers;
respectively, only 5% of visa petitions were related to direct investments.
However, EB-5 investments in regional centers were suspended in June
2021 and have not been resumed. There is some hope in American
business circles that this pause is temporary and that the program will
become fully operational by the end of 2022. Still, no one undertakes to
predict the exact date of its resumption.
EB-5 direct investment
EB-5 direct investment is currently the only way to participate in the EB5 investment program. Direct investment involves the creation of at least
ten jobs where employees will receive a salary for their work.
The regional center program is now closed. And, despite the strong lobby
that seeks its opening, the exact date is still unknown. And although this
news was initially received with pessimism, we would like to draw
attention to the positive side of this event.
Regional center vs. direct investment
Participation in the immigration investment program is possible in two
ways: through direct investment or the Regional Center. There are
several criteria on which these two eb5 investment opportunities differ
significantly.
EB-5 investing- The investment amount for both paths is $800,000
minimum for Targeted Employment Area (TEA) and no less than
$1,050,000 for other zones.
In the case of direct investment, the applicant invests his money directly
in a new commercial EB-5 project without the help of an intermediary.
If the investor chooses to cooperate with the Regional Center, the latter
creates an investment fund in which investors buy a stake. Further, the
Regional Center either gives a loan to the selected project or buys shares
in the enterprise - this depends on the project's structure chosen for
participation in the EB-5 program.
EB-5 job creation- Only jobs related to a particular enterprise - an EB-5
project - and officially registered positions- can be considered when
investing under the program. Direct investment usually creates not many
jobs with permanent employment and for an extended period of time (2
years minimum).
At the same time, the program of the Regional Centers makes it possible
to take into account jobs of different types: indirect and induced. The
former includes jobs with intermediaries and service providers. Induced
jobs are new vacancies that have appeared due to the EB-5 project (for
example, the expansion of a retail outlet near the EB-5 project hotel due
to increased customer flow). This expanded employment coverage
through the Regional Center involves creating or retaining more jobs,
which increases the likelihood that more immigrant investors will be able
to meet the job creation requirements of investing in a single project.
EB-5 Project Management- Direct investments do not involve outside
assistance of specialists, which means that they will require the investor
to be more involved in the project and need to take a more active part
in the processes.
The presence of the Regional Center in the chain of stages allows
investors to take a more passive position about the project, leaving more
free time for other things. This does not meet the requirements of very
ambitious investors who want to keep their affairs under control but is
ideal for those interested in more passive income and limits their role in
the project.
Conclusion
Applying for an EB-5 visa is an important step for foreign nationals and
their families, and their unique circumstances must be carefully
considered. Therefore, it is strongly recommended that you consult with
a qualified EB-5 counseling firm or a USCIS-accredited regional center
when determining the best eb5 investment opportunities for obtaining
permanent residence in the United States.