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What is the minimum investment through an EB-5 regional center?

We are confused about what the minimum investment amount is specifically through EB-5 regional centers. We have seen answers that say investors can invest with a lower amount of $500,000 if they go through an EB-5 regional center, but we thought the EB-5 program minimum investment is $1 million. So why would going through a regional center mean an investor only has to spend $500,000?

Answers

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    Ed Beshara

    Immigration Attorney
    Answered on

    If the EB-5 project is in a Targeted Employment Area (TEA), then the minimum investment can be $500,000, whether it is a regional center or direct EB-5 project.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    The minimum investment is set by law. The minimum investment is determined by the classification of where the investment is going to take place: investments in Targeted Employment Areas (TEA or rural area) require at least $500,000, while investments in urban areas require $1 million. Thus, if you are planning to invest through a regional center that operates in a TEA or rural area, the minimum investment amount will be $500,000; otherwise, if a regional center operates in an urban area, the minimum investment will be $1 million.

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    Xiaosheng Huang

    Immigration Attorney
    Answered on

    They are in different locations.

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    John J Downey

    Immigration Attorney
    Answered on

    The $500,000 has nothing to do with the regional center. The minimum investment refers to the area of investment. If the investment is in an area designated by a state as a Targeted Employment Area, then you may invest the $500,000; if not, then the $1 million is required.

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    Charles Foster

    Immigration Attorney
    Answered on

    The minimum investment through an EB-5 regional center is $500,000. Anyone who is telling you that an investor can invest less is entirely wrong. There have been instances where folks are suggesting what is essentially a legal scam, i.e. promising that you could invest $500,000 and there would be a $250,000 rebate. That is illegal and in the end will prove to be unsuccessful. The normal investment amount is $1 million, but virtually all of the programs being marketed are at the $500,000 level based upon the fact that the premises of the project are located in a Targeted Economic Area (TEA).

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Investing in a regional center has nothing to do with the minimum investment amount. For all EB-5 cases, regional center or not, the minimum investment amount is $1 million unless the new commercial enterprise is principally doing business in a Targeted Employment Area (TEA). In other words, both regional center and direct EB-5 cases can be either $1 million or $500,000. In either case, for the lower amount to be allowed, the investment must be located in a TEA.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    The EB-5 investment amount is $500,000, except when the business that will create jobs is located in a Targeted Employment Area that is verified by the state economic department. If in a TEA, then the investment could be $500,000. Just because you invest with a regional center does not make the required investment $500,000. There are many regional center projects that do not qualify as within a TEA.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Regional center investments and direct EB-5 investments can be either $500,000 or $1 million. The location of the project (regardless of it being affiliated with a regional center or not) determines the difference. Projects located in a Targeted Employment Area or rural area require a $500,000 investment; otherwise, the required investment is $1 million.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    The amount is not reduced because of the regional center; that relates to job creation. The lower amount is for high unemployment and rural areas.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    Regional centers are generally within approved Targeted Employment Areas that allow them to qualify for the minimum investment amount of $500,000. This amount will likely be increased after Sept. 30, 2016.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    Currently the minimum is $500,000. Generally you will also pay $50,000 additional as an administrative fee.

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    Margo Chernysheva

    Immigration Attorney
    Answered on

    The investment for an EB-5 visa is $1 million unless it qualifies for the reduced amount. Most projects within regional centers try to qualify for the reduced amount to be competitive, so that is why most investments through the regional center are $500,000. I would strongly recommend you hire a qualified immigration attorney to assist with your application process who would be able to answer all of these questions for you.

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    Dale Schwartz

    Immigration Attorney
    Answered on

    It does not depend on whether or not the investment is with a regional center. What controls is WHERE the business and employees are located. If in a rural area or a Targeted Employment Area, then the investment is only $500,000.

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