The EB-5 Immigrant Investor Program offers multiple kinds of investments for foreign investors. Each of these investments have their own features, benefits, and considerations. Here’s more information on the different types of EB-5 projects and investments:
Direct Investment in a New Commercial Enterprise
One of the primary options for EB-5 projects is to invest in a new commercial enterprise (NCE) directly. An NCE is a for-profit entity established to engage in lawful business activities. Direct investments generally require the investor to play an active role in managing the business and creating jobs. This type of investment allows investors to have a hands-on approach, contributing to the enterprise’s day-to-day operations and decision-making processes.
Regional Center Investments
Regional centers are designated by the U.S. Citizenship and Immigration Services (USCIS) to promote economic growth within a specific geographic area. Investing through a regional center offers several advantages, including the potential to count both direct and indirect job creation toward the job creation requirement. Regional centers often focus on large-scale projects such as real estate developments, infrastructure, and industries that can significantly impact local economies.
Troubled Business Investments
Investing in a troubled business is another option for EB-5 investors. A troubled company has existed for at least two years and has incurred a net loss during the 12- or 24-month period before the priority date of the investor’s EB-5 petition. Investors can inject capital into such businesses to help stabilize and revitalize their operations to create or preserve jobs.
New Commercial Enterprise Expansion
Investors can also choose to invest in expanding an existing new commercial enterprise. The expansion investment must lead to a 40% increase in the enterprise’s net worth or number of employees. This option allows investors to contribute to the growth of a successful business while fulfilling the job creation requirement.
EB-5 Investment Project Selection
Choosing the right investment project is a key decision for EB-5 investors. This is why many investors work with experienced EB-5 professionals to assist in selecting a suitable investment opportunity. Factors to consider include the project’s business plan, financial projections, market demand, track record of the developers, and the likelihood of meeting the job creation requirement. Here are several requirements and factors to consider when choosing an investment project:
Job Creation
Regardless of the type of investment, one of the main objectives of the EB-5 program is to create jobs for U.S. workers. Investors must create or maintain ten or more full-time positions for qualified workers. This should occur within two years of entering the United States as conditional permanent residents.
Investment Amount
The minimum required investment amount for EB-5 investors varies depending on whether the investment is made in a targeted employment area (TEA) or a non-TEA. TEAs are rural regions or areas with high unemployment rates. As of my knowledge cutoff in September 2021, the standard investment amount is $1.05 million, while the minimum investment in a TEA is $800,000. These figures may be subject to change, so verifying the current amounts with official sources is recommended.
Risk Factors
EB-5 investments, like any investment, come with certain risks. These risks can vary depending on factors such as the type of project, regional center reputation, and market conditions. Potential investors should conduct due diligence and seek advice from legal and financial professionals before committing to an EB-5 investment.
Finding the Right EB-5 Projects for Your Needs
Contact a certified EB-5 regional center for more details about the different EB-5 investment projects available. To select a local project or regional center that suits your needs, compare those nearby. Consider talking to other EB-5 applicants to gain insight into the program. Find an EB-5 project that fits your financial and immigration goals by researching online today.
