What is the benefit of investing in an EB-5 Regional Center as opposed to going with a direct investment in an EB-5 project?
Indirect job counts, and less need to directly mange the investment.
When investing in a regional center project you will be able to count direct, induced and indirect jobs as opposed to only direct jobs. In addition you will not need to be involved in the day to day management of the business.
The benefits are mainly in two folds: 1) no need to participate in active daily management. 2) no need to prove direct job creation due to your investment. For more information about EB5, please visit our website. If you are in the Los Angeles area, we can schedule a meeting to discuss your immigration plan.
The main benefit of investing in a regional center as opposed to a direct project is job creation. In a direct project, only the direct jobs are counted. In a regional center, induced and indirect jobs may also be counted. As more jobs can be created in a regional center project, these are usually larger projects.
There are pros and cons to both options for investment under the EB-5 program. Which route you choose will depend in part on your goals. If you plan on running your own business in the U.S. and the business is expected to created 10 full time direct jobs, then the direct EB-5 option may be a good one to consider. One of the key benefits of a regional center based investment is how the job creation is calculated. In the regional center context, indirect jobs count as well. Discussing your overall goals for immigrating to the U.S. in conjunction with your business goals with immigration counsel should help you decide which option best fits your particular set of facts.
In a Regional Center project setting "indirect" jobs may counted to meet the minimum 10 full-time job creation requirement per investor. Additionally, if a project is located in a targeted employment area or rural area, the required amount of investment is reduced to $500,000 over $1 million. Additionally, an EB-5 investor is generally a limited partner or member in the project and does not manage the project directly. It gives an EB-5 investor an opportunity to reside anywhere in the US and engage in other legal activities, such as other business activities, school, retirement, or other activities. Should you have any other questions, please do not hesitate to contact our office.
The major advantages are that it is a passive investment and you can count the indirect and induced jobs towards the job creation requirement.
Individuals wish to invest in a regional center EB5 project instead of an individual EB5 project when they do not want to be involved in the day to day activities of hiring employees, maintaining staff, acquiring licenses, etc. The regional center basically runs the business for you so you do not have to worry about those issues. An individual EB5 investment is an option for individuals who have goals of having their own business in the US that they want to develop. We are available is you have any further questions.
These are the primary advantages of investing through a Regional Center.
You can utilize an economic model for job calculation. 10 required jobs for every investor is difficult to achieve for many business ventures. Best.
One of the advantages of investing in an EB-5 Regional Center project is that another company ( separate and distinct from your own) which may have a history of business and immigration success will be responsible for the business activity, the hiring of US workers, and the primary management.
The benefit to the regional center is that the minimum investment is pre-cleared to be $500,000. I can discuss individual investment criteria on a direct basis.
The difference is that the Regional Center project could utilize indirect job creation in addition to or instead of direct job creation. You may invest in any new business enterprise if you wish and create 10 + full time permanent job directly for EB-5.
A Regional Center will take care of the whole process of elaborating a business plan and job creation requirement. It will be substantially less expensive as well because they will manage the investments of multiple foreign investors.
Presumably you mean that you are investing in a Regional Center sponsored project as opposed to investing in the Regional Center itself. The key advantage to Regional Center projects is that indirect and induced jobs may be counted. To the extent that this provides an additional cushion for job counts that you might not ordinarily have if the project was a direct EB-5 investment, that would be a great benefit. However, you have to be careful that the project hasn''t raise so much money as to obliterate the benefit of the extra job counts (and in fact, many projects do use the Regional Center path so that they can raise more money). Other advantages may be that if you are investing in a Regional Center project that is backed by a strong Regional Center with a history of integrity and better projects, you may feel comforted by their track record; however, it''s important to note that a brand new project without any name could be a better investment than a project with notable names backing it. It really all comes down to diligence. Sometimes, people have taken comfort that a Regional Center has to be approved by USCIS first; however, such approval by itself does not really mean that a project sponsored by the Regional Center would be approved, or that such a project would be a better investment.
The investor receives the benefit of indirect and induced job creation. Lack of required job creation is the number one reason I-829 petitions are denied.
Every project needs to be evaluated on its own merits, and certainly there are good regional center projects and good so-called "direct" projects. The biggest difference between the two is that regional centers are given job creation credit for "indirect" and "induced" job creation, which enables them to raise more capital via EB-5. Some people believe that because the direct deals only get job creation credit for the number of EB-5 qualified jobs they directly create, that they may be more at risk for not creating enough jobs. Of course, this belief has to be evaluated on a case by case basis.
The benefit of investing in a Regional center over a direct investment is that in a Regional Center direct and indirect jobs are counted towards the 10 jobs that need to be created and that you do not have to be managing anything in the Regional Center. If you have any other questions, please do not hesitate to contact me. Thank you.
Regional centers can count indirect job creation based upon reasonable economic methodologies. Otherwise, the EB-5 requirements are the same for regional centers as they are for individual/basic EB-5 program investments.
The EB-5 program requires an investment of either $1 million or $500,000 (depending on location) and the creation of 10 direct new full-time jobs. The benefit of investing in a Regional Center is that the project may rely on direct, indirect and induced job creation.
The biggest advantage to investing through a Regional Center for EB-5 processing is that you can meet the job creation requirement by counting the indirect jobs created by the invested funds.
The primary benefit of a Regional Center is that an RC project can demonstrate "indirect" employment through economic growth as proof of job creation.
The amount is $500,000 and it is relatively easier to get approved.
There is no benefit to either. It is a matter of your comfort level with the investment.
You can count indirect and direct employment as it relates to the requisite number of employees per EB-5 investor. Also, it is a $500,000 investment.
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