eb5 programs

Direct Program vs Regional Center Program

 

America’s EB-5 program offers the fabled Green Card to investors willing to put capital into projects which create jobs and help boost the U.S. economy.

There are two different routes for EB-5 investors: (1) the traditional Direct Investment Program; and (2) the Regional Center Program. As an investor, you can choose which program suits your situation best. Although there are marginal differences, the results are the same – U.S. permanent residency and a path to U.S. citizenship.

Let’s look at the differences between the two routes to a Green Card.

EB-5 Direct Investment Program

The EB-5 direct investment program was first introduced by Congress. Therefore, to qualify, an investment must be made into a new enterprise that was established on or after 29th November 1990.

The additional requirements of the direct investment route are:

  • The investor must invest a minimum of $500,000 USD if in a TEA (Targeted Employment Area) or $1 million USD in all other areas.
  • The investment can be active or passive.
  • The enterprise must create 10 full-time jobs within two years of its incorporation.

The benefits of the direct route are that the investment is made directly with the organization or project rather than through a third party or middle man. Oftentimes, investors may have the opportunity to take equity or shares in the project or business. Those who want to start their own business in the U.S. would also take the direct EB-5 route. Under the Direct Program, only jobs that are directly created/operational will be counted toward job creation.

EB-5 Regional Center Program

The Regional Center program was first introduced as a pilot program under the traditional Direct Program. This pilot program was introduced to allow investors to pool their investments in larger projects.

Regional Centers are administrative bodies approved by the government to operate in specific areas and identify projects which would benefit and flourish from investment capital whilst also meeting the government requirements for the program. Regional Centers function mainly to market and raise capital for various U.S. projects.

The requirements for the Regional Center Programs are:

  • The investor must invest a minimum of $500,000 USD if in a TEA (Targeted Employment Area) or $1 million USD in all other areas.
  • The 10 jobs can be created indirectly, i.e., sub-contractors or induced jobs created through an increase in demand for goods or services.
  • The investor will likely play a passive role in the project.

Under the Regional Center program indirect, induced, and direct jobs can be created. Many projects are based around large construction development with the opportunity to count construction, engineering, architecture, and other “indirect” jobs while also counting operational jobs created by the business itself.

Finding the right option for your investment and route to a Green Card will very much depend on your experience, fields of interest, and eligibility. For a more detailed overview of the process, you can click here to read our blog EB-5 Program Explained.

While the EB-5 Regional Center Program is still awaiting reauthorization, the Direct Program continues to be available for prospective investors. You can still find further information on our site, or get in contact by clicking this link.

America’s EB-5 program offers the fabled Green Card to investors willing to put capital into projects which create jobs and help boost the U.S. economy.

There are two different routes for EB-5 investors: (1) the traditional Direct Investment Program; and (2) the Regional Center Program. As an investor, you can choose which program suits your situation best. Although there are marginal differences, the results are the same – U.S. permanent residency and a path to U.S. citizenship.

Let’s look at the differences between the two routes to a Green Card.

EB-5 Direct Investment Program

The EB-5 direct investment program was first introduced by Congress. Therefore, to qualify, an investment must be made into a new enterprise that was established on or after 29th November 1990.

The additional requirements of the direct investment route are:

  • The investor must invest a minimum of $800,000 USD if in a TEA (Targeted Employment Area) or $1 million USD in all other areas.
  • The investment can be active or passive.
  • The enterprise must create 10 full-time jobs within two years of its incorporation.

The benefits of the direct route are that the investment is made directly with the organization or project rather than through a third party or middle man. Oftentimes, investors may have the opportunity to take equity or shares in the project or business. Those who want to start their own business in the U.S. would also take the direct EB-5 route. Under the Direct Program, only jobs that are directly created/operational will be counted toward job creation.

EB-5 Regional Center Program

The Regional Center program was first introduced as a pilot program under the traditional Direct Program. This pilot program was introduced to allow investors to pool their investments in larger projects.

Regional Centers are administrative bodies approved by the government to operate in specific areas and identify projects which would benefit and flourish from investment capital whilst also meeting the government requirements for the program. Regional Centers function mainly to market and raise capital for various U.S. projects.

The requirements for the Regional Center Programs are:

  • The investor must invest a minimum of $800,000 USD if in a TEA (Targeted Employment Area) or $1 million USD in all other areas.
  • The 10 jobs can be created indirectly, i.e., sub-contractors or induced jobs created through an increase in demand for goods or services.
  • The investor will likely play a passive role in the project.

Under the Regional Center program indirect, induced, and direct jobs can be created. Many projects are based around large construction development with the opportunity to count construction, engineering, architecture, and other “indirect” jobs while also counting operational jobs created by the business itself.

Finding the right option for your investment and route to a Green Card will very much depend on your experience, fields of interest, and eligibility. For a more detailed overview of the process, you can click here to read our blog EB-5 Program Explained.

While the EB-5 Regional Center Program is still awaiting reauthorization, the Direct Program continues to be available for prospective investors. You can still find further information on our site, or get in contact by clicking this link.