The U.S. EB-5 Immigrant Investor Program is one of the best of its kind both in North America and internationally. It is intended for high net worth individuals who are entrepreneurs, business leaders, or retirees. The EB-5 program allows investors from all around the world the opportunity to become permanent residents of the USA, and later become U.S. citizens. In order to be a successful candidate for the EB-5 program, the applicant has to have medical and security clearance, have a minimum net worth of US$1,000,000 and invest a minimum amount of US$500,000.
For the US immigrant investor program EB-5, there are two main investment options that an investor can choose from: investing in a new commercial enterprise or investing in a Regional Center (RC). Both investment options have their pro’s and con’s. This blog will highlight the upsides and downsides of these investment options for potential business investors who are interested in applying for immigration to the USA through the EB-5 program.
The direct investment requires the EB-5 investor to make the minimum investment to a newly established business or to start a business themselves in the U.S. This investment option requires the investor to create 10 full-time jobs directly for U.S. citizens within the first two years of receiving their green card. Creating 10 full-time jobs directly and starting a business may be challenging, and there is no guarantee as direct investments are usually made to small projects. However, the direct investment option is a good option for immigrant investors who are passionate about starting their own business, and who would be willing and capable of spending their time in the direct management of their business enterprise.
Regional Center (RC)
Regional Centers are those that can meet the requirement of creating 10 full-time jobs that the EB-5 program requires by including both direct and indirect job creation. For those who would not have the necessary time to commit to the management of a business start-up, the Regional Center investment option would be the best for their circumstances. Immigrant investors who are solely thinking of applying for the EB-5 in order to receive permanent residency in the USA would be better off with this option. Also, it is easier to meet the requirement of creating 10 full-time jobs through this option as it includes indirect employment opportunities as well.
In summary, the major difference between investment in a Regional Center and investment in a newly established business is the ability to take advantage of indirect job creation through the Regional Center. Additionally, in a RC you do not have to be actively involved in the business whereas with a direct investment, active involvement and management is essential. Both investment options have risks and advantages, but thorough research and due diligence is the key to a successful outcome regardless of the option chosen.
Feel free to fill out our Free Assessment, and find out if you qualify under any of the business immigration programs offered.