EB-5 Direct Investments
Investors in a direct EB-5 investment project may need to structure complicated investment strategies, unlike foreign investors who participate in the EB-5 program through a regional center with established business plans and job-creating models. Direct investors need to prove the new commercial enterprise’s ability to create 10 jobs in their investment entity, as only direct jobs created or preserved by the new commercial enterprise are allowed. Comparing with regional center projects, a direct EB-5 project typically involves fewer investors in the capital contribution. EB-5 applicants can also partner with U.S. permanent residents and citizens. In addition to creating a new business, investors can also choose to restructure an existing business by increasing the net worth or employment by at least 40%. The investment capital in a direct EB-5 project can include cash contribution, or investment in inventory, equipment or other tangible properties. Restaurants, hotels, nursing homes and retail stores are popular options for EB-5 investors in direct investments.