Since the EB-5 regional center program lapsed, we are considering direct EB-5 investment. What are our options to apply for a direct EB-5 visa and how much is the current investment amount?
We are seeing quite a few and very viable with the lowered investment amounts: $500,000 in a Targeted Employment Area or $1M otherwise.
Depends on whether you want to run the business yourself or invest into a project set up by another group. EB-5 direct has always been an option; the difference now is that our clients are demanding that the projects (and the groups behind them) are as professionally run and structured as the mature RC projects. That is a good starting point for most investors as they consider what project is suitable for them, because you want to maximize the chance that the business will continue to operate during your EB-5 process.
Direct works, but it is not easy to sustain 10 full time jobs with only a $500,000 investment if located in a targeted employment or rural area. Outside TEA or rural, the investment amount is $1m.
There has been a significant interest in direct EB-5 investment opportunities due to the lapse in the EB-5 Regional Center Program. There are different kinds of investment structures and projects currently being offered on the market. Common projects include hotel chains, restaurants, and other kinds of commercial/residential facilities. The current EB-5 investment thresholds are $500,000 for an investment in a Targeted Employment Area and $1MM for an investment not in a TEA.
The investment amount depends on the location of the direct EB-5 business. We have seen an influx of "sponsored" direct projects in the last couple of months; some seem safer than others and you will need to decide that for yourself (with your attorney).
The key consideration in direct investments is that you have to have all employment creation within the business. No indirect or induced jobs. Like with RC investments, it is the same investment thresholds: currently $500,000 for investments in a TEA, $1 million elsewhere.
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