What is the difference between an EB-5 Regional Center project and a Direct EB-5 project?
On the surface level EB-5 Direct projects are similar to EB-5 Regional Center projects, but, a deeper dive into the two shows that EB-5 Direct projects are substantially different and require a different level of commitment from an investor. Two main differences between the two is that projects invested through a Regional Center are generally cheaper and more convenient.
With a direct EB-5 investment, the investor is required to be actively involved and manage his or her own business. This, of course, not only requires a lot of know-how on the investor’s part in regard to the American market, but, it also requires that the investor live near the project. On the other hand, when an investor invests through a Regional Center, he or she does not need to actively manage the business – it is already structured to work for their benefit. This allows the investor to live anywhere in the US, with the right to work, study, and use a multitude of public services.
Investing through a Regional Center is much less risky than starting and maintaining your own business. The significant time commitment involved in actively managing a business is also a major deterrent. As a result, less than 5% of all EB-5 investments are made directly. Most investors opt for making their investments through the Regional Centers.
The regulations dictating the amount of jobs created is also different between direct EB-5 investments and investments made through Regional Centers. Regional Center projects are allowed to use an economist to count indirect jobs and induced jobs created through the investment as a part of the total job count. Direct EB-5 projects are only allowed to count full time positions that are directly created from the business.
Taking all this into consideration, there is no doubt that the EB-5 visa – through a Regional Center – is an ideal solution for those who want to obtain an investor visa. Having a strong partner in guiding you through the investment process is essential. Connect now with an experienced and well-informed investment firm, LCR Capital, in order to ensure that your EB-5 application process is stress-free, thus allowing you to focus on what really matters – your new life in the United States.
Interested in learning more? Contact us.