What is EB-5?

EB-5 Project Qualifications

  • Minimum Investment of $1MM or $500K in a Targeted Employment Area (TEA)
  • Investment in a New Commercial Enterprise (NCE)* created after 1990 (Regional Center “passive investment” option created in 1993)
  • Investment must create (or preserve) 10 qualifying jobs

*New Commercial Enterprise: A business entity being used for EB-5 purposes.

EB-5 Direct vs. Indirect (Regional Center)

Investment Options

Direct Investment
  • Investment directly into NCE
  •  Direct management of NCE by investor
  •  Jobs directly created by NCE or a wholly-owned subsidiary(ies)
Regional Center Investment
  •  NCE is a pooled investment fund that lends money to or invests in a Project Company
  •  Investor has limited duties and power
  •  Jobs created directly or indirectly by Project Company

Comparing EB-5 Investment Options

direct-icon Direct Investment (eg: Franchise)

rc-icon Regional Center (Indirect)

  • Investor actually wants to start and/or manage a business.
  • He or she is not interested in starting a business.
  • Business will be creating employment up front.
  • Although investor may want to start a business, it will not create sufficient employment for an individual EB-5.
  • The investment is the driving force behind his or her wanting to come to the US.
  • He or she wants to spend a significant amount of his or her time outside of the US.
  • He or she wants to have control over his or her investment.
  • He or she doesn’t care about controlling the business or investment.
  • He or she wants to maximize profits from his or her investment.
  • Less focused on Return on Investment.
  • Investor has some interest in Return on Investment although IMMIGRATION remains priority.
  • Immigration – – rather than running the US business – – is the driving force behind his or her investment.