When can an EB-5 project include both regional center and direct investments?

In a regional center model there can be the new commercial enterprise receiving the investors&#39 funds and the job creating entity receiving a loan of the proceeds from the new commercial enterprise. The job creating entity is where the jobs are created, the ownership of the project and the construction of the project. Under the above set of facts it is an EB-5 regional center loan model. If the investors invest their personal funds into the job creating entity and create ten full time jobs for U.S. citizens or permanent residents, then this set of facts can be considered a direct EB-5 project.

It is not necessarily the EB-5 project that is considered either a direct project or regional center project, but each individual I-526 petition. In other words, each I-526 petitioner must independently prove that it is more likely than not that the required number of jobs (direct or indirect) will be created within the required time period. Theoretically, you could have a project in which one or more I-526 petitioners would rely on direct jobs created by the new commercial enterprise while other I-526 petitioners would rely on indirect job creation. You cannot count the same jobs twice, so that means that none of the indirect job count can be based in any way on the direct jobs created, since those direct jobs will be allocated already to the direct I-526 petitioner.

It can, but it is redundant. If you have a project you can use either the regional center or direct method. The regional center you can count for more jobs as it includes indirect jobs, and thus create higher funding. However, as it is a complicated process, some people just use the direct method.

I do not know of any benefits from using both. Direct investment means you provide 10 direct jobs showing W-2 forms etc. The regional center concept was initiated to provide indirect jobs. You may use both of them if you wish, but you must verify the creation of the jobs at the time of removal of conditions.

This would be a very unique offering. If you are going to associate the project with a regional center, and be able to take advantage of indirect employment, why have a direct investment component at all? Either way, each individual petitioner will be responsible for the creation of 10 jobs, be they direct or indirect.

A project cannot be both a direct project and a regional center project at the same time. In a sense, a project can be both a direct project and also a new enterprise of a regional center if only for consideration in making a choice as to what form the project should take. Job creation is indirect when the project is a new enterprise of a regional center. In a direct project, each job actually created by the project, itself, is counted. In both cases 10 full-time positions must be created.