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How can multiple EB-5 investors invest directly into a project?

Can an EB-5 investor invest directly into a project with other immigrant investors, without going through a regional center? How would we seek approval for such a project? Would we be able to count indirect jobs under this structure?

Answers

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    John J Downey

    Immigration Attorney
    Answered on

    You may only count indirect jobs through a regional center. You may invest directly into a project, but each investor must provide 10 direct jobs.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    Yes, there can be multiple investors, but there must be 10 direct jobs for each foreign investor seeking EB-5 status.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Pooled investments can work in the direct EB-5 context, but the requirement for direct jobs (instead of indirect or induced jobs) remains. Only regional center projects can take advantage of indirect job creation.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    Pooling multiple EB-5 investors is allowed when you are doing a direct EB-5 case. However, unlike going through a regional center, the direct project could only count the direct jobs hired by the project rather than being able to count the indirect jobs. Being able to count indirect or induced jobs is only allowed for the regional center.

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    Oliver Huiyue Qiu

    Immigration Attorney
    Answered on

    It is possible to have a group of EB5 investors in a single project and have all the investors qualify for green cards. This is commonly called a direct investment. There is no need to seek USCIS pre-approval. It may be processed without a regional center. But in a direct investment situation, the indirect jobs will not be counted.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Yes; multiple investors may invest in a project that is not affiliated with a regional center. This type of investment is known as a "direct" EB-5 investment. The jobs must be directly created by the new commercial enterprise, or its wholly-owned subsidiary; no indirect jobs may be counted. Each EB-5 investor must meet the requirements of investing the required amount of funds, be involved with the management of the new commercial enterprise, and prove that at least 10 direct, full-time jobs will result.

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    Michael A Harris

    Immigration Attorney
    Answered on

    Yes, a project can be funded with multiple EB-5 investors and not be part of a regional center. There would have to be sufficient direct job creation (10 full time qualified jobs or more) for each investor. Indirect job creation is only allowed when a project is affiliated with a regional center. As well, whether your project is affiliated with a regional center that has already been approved, or if you choose to fund the project with direct job creation only, you are not required to seek USCIS pre-approval. In fact, for a direct job creation project there is no option for pre-approval such as we could do for a regional center project. Once a direct project has its PPM, business plan, and project materials ready, individual investors can file with USCIS (no econ study is needed for a direct pooled investment project).

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    Kenneth C Wright

    Securities Attorney
    Answered on

    EB-5 investors can pool their investment directly in the job-creating project through ownership of equity interests in the entity that creates the direct jobs or the parent entity that wholly owns it. Generally, this pooling effort would require compliance with a federal and state securities laws. You would not need to affiliate with a regional center if you created sufficient direct jobs. You would need to affiliate with a regional center in order to count indirect jobs. In either case, your immigration counsel could seek appropriate USCIS approvals.

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    Ed Beshara

    Immigration Attorney
    Answered on

    Multiple investors can invest their personal funds directly into a new commercial enterprise. Each investor will be an equity owner and be responsible for the creation of ten full time jobs. This direct project may become associated with a regional center so that the required number of jobs can be calculated indirectly.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    Yes, more than a single investor can invest on a single business entity. You should work with your EB-5 attorney and business plan professional to put this together.

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    Ying Lu

    Immigration Attorney
    Answered on

    Yes, you can pool the investors in a project without going through a regional center. It is called direct EB-5. Under direct EB-5, you cannot count indirect jobs. You can only count direct jobs created on the new commercial enterprise''s payroll. Please make sure to consult an experienced EB-5 attorney for direct EB-5 solutions.

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    Ian E Scott

    Immigration Attorney
    Answered on

    If you would like to obtain a green card through the EB-5 program without investing in a regional center (direct investment), you may pool money together to invest in a project (eg. five people who wish to build a hotel, and if five people invest and all want green cards, 50 jobs would have to be created). All of the rules regarding job creation and amount of investment ($500,000 or $1 million) are the same as for a regional center, except indirect jobs cannot be counted. (They can only be counted if you invest in a regional center). You do not need USCIS approval for this the same way that a regional center requires approval, but you would want to be sure that the project is going to get the investors the green card.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    Yes, you can undertake a direct investment. However, you will need to be involved in the management of such projects/business.

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