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What is the difference between a pooled EB-5 investment and a regional center?

I have potential leads that can raise up enough money for a set business plan. How do I decide whether to start a pooled EB-5 investment or a regional center? What are the general differences between pooled EB-5 investments and regional centers?

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    Julia Roussinova

    Immigration Attorney
    Answered on

    Within a regional center setting, indirect and induced jobs are counted as opposed to direct investment, when only direct job creation of at least 10 full-time, permanent jobs per each EB-5 investor is allowed. Pooled investment models may be used in both direct and regional center settings.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Nearly all regional center programs pool multiple EB-5 investors and loan the funds or use the funds for an equity investment into a job creating entity. Direct EB-5 projects have used pooling of investors as well, with all the requirements of a direct EB-5 investment (that is, only direct jobs are counted).

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    Michael A Harris

    Immigration Attorney
    Answered on

    The difference is that while most regional centers use pooled investment structures, other projects that are not affiliated with a regional center can also use pooled investment funds. A project that can create the requisite minimum number of direct jobs per EB-5 investor can also use pooled investment funds from multiple EB-5 investors. Hence, the principal difference between regional center and non-regional center projects is the type of jobs they can receive credit for (i.e. direct jobs proven with payroll records vs. indirect/induced jobs for regional centers). Knowing which option works for you will depend on the number of direct full-time jobs your project can produce. If there are not enough qualifying direct jobs, then you would have to consider the regional center program to see what other indirect/induced credits you can apply for.

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    John J Downey

    Immigration Attorney
    Answered on

    I think this is apples and oranges; in other words, two different things. A pooled investment is how you reach your monetary goals. A regional center is how you obtain the jobs needed to fulfill the requirements of 10 jobs per investor, direct or indirect.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    Regional centers can count indirect jobs, which is huge, and explains why 98 percent do regional centers.

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