Choosing Between Direct Investment or Regional Center

By on 10-09-2015 in Immigration

 

If you are an EB5 visa applicant, you might have already asked your Russian-speakingĀ EB5 lawyer whether if you will choose to directly invest your money in a business or find a regional center to accommodate your investment. Each of them has their own set of benefits and advantages, and choosing one over the other really depends on your personal and business circumstances.

Direct investment

Foreign investors wanting to hold a green card and at the same time manage their investment in a more direct way can choose to either create a new business or take over an existing business. Under the United States Immigrant Investor Program, investors need to invest $1 million in capital to create a new enterprise or salvage a troubled business, or a business that is running for at least two years and has experienced a 20% loss of net worth.

The program requires the investor to generate at least 10 direct, full-time jobs if they choose to create their own business. On the other hand, investors who opt in to take over a troubled business are required to maintain the existing number of employment for at least two years. When investors fail in meeting these requirements, chances are the EB5 visa will be revoked.

Regional Center investment

Regional centers are economic organizations designated by the U.S. Citizenship and Immigration Services, which aim to create direct and indirect jobs, and increase domestic capital and productivity with the help of foreign investors. Unlike direct investment, investing in regional center does not require you to assume active role in managing your investment. This makes it a perfect choice for those who are less concerned about directly managing their investment and are much more concerned about getting a green card.

Apart from less business involvement, some immigrant program involving regional centers only require investors to invest $500,000, as opposed to the standard $1 million for investing in a troubled business or creating a new one.