What is the difference between a pooled EB-5 investment and a regional center? - EB5Investors.com

What is the difference between a pooled EB-5 investment and a regional center?

I have potential leads that can raise up enough money for a set business plan. How do I decide whether to start a pooled EB-5 investment or a regional center? What are the general differences between pooled EB-5 investments and regional centers?

Answers

Julia Roussinova

Julia Roussinova

Immigration Attorneys
Answered on

Within a regional center setting, indirect and induced jobs are counted as opposed to direct investment, when only direct job creation of at least 10 full-time, permanent jobs per each EB-5 investor is allowed. Pooled investment models may be used in both direct and regional center settings.

Salvatore Picataggio

Salvatore Picataggio

Immigration Attorneys
Answered on

Nearly all regional center programs pool multiple EB-5 investors and loan the funds or use the funds for an equity investment into a job creating entity. Direct EB-5 projects have used pooling of investors as well, with all the requirements of a direct EB-5 investment (that is, only direct jobs are counted).

Michael A Harris, Esq

Michael A Harris, Esq

Immigration Attorneys
Answered on

The difference is that while most regional centers use pooled investment structures, other projects that are not affiliated with a regional center can also use pooled investment funds. A project that can create the requisite minimum number of direct jobs per EB-5 investor can also use pooled investment funds from multiple EB-5 investors. Hence, the principal difference between regional center and non-regional center projects is the type of jobs they can receive credit for (i.e. direct jobs proven with payroll records vs. indirect/induced jobs for regional centers). Knowing which option works for you will depend on the number of direct full-time jobs your project can produce. If there are not enough qualifying direct jobs, then you would have to consider the regional center program to see what other indirect/induced credits you can apply for.

John J Downey

John J Downey

Immigration Attorneys
Answered on

I think this is apples and oranges; in other words, two different things. A pooled investment is how you reach your monetary goals. A regional center is how you obtain the jobs needed to fulfill the requirements of 10 jobs per investor, direct or indirect.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

Immigration Attorneys
Answered on

Regional centers can count indirect jobs, which is huge, and explains why 98 percent do regional centers.

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