EB-5 Direct or Regional Center?

EB-5 Direct vs Regional Center: A Comprehensive Overview. Investment $800,000

Direct EB-5: Pros

Owning some equity in the business
Having more control over the management of the business
Higher returns

Direct EB-5: Cons

Substantially higher EB-5 denial rate
Secondary/contracting jobs cannot be included in the EB-5 job count for compliance. Often secondary jobs account for 2/3rds of the workforce
Far higher EB-5 denial rate compared with regional centre EB-5
Unsecured EB-5 investment loans are unlikely

Regional Centre EB-5: Pros

Now possible to own equity in the project
Now possible to receive very high returns
Unsecured EB-5 investment loans are available
Direct and indirect/secondary jobs are included in the EB-5 job count. Making compliance for permanent EB-5 far easier
Far lower EB-5 denial rate compared with Direct EB-5

Regional Centre EB-5: Cons

Most project have a longer repayment term compared with Direct EB-5. However, many new projects do not
Less control over type of project, location and its ownership

EB-5 gives your family the security of Permanent U.S. Residency without repeated Visa applications

Free Consultation

Retiring to the USA from the United Kingdom

Since its inception in 1990, the EB-5 Immigrant Investor program has provided a pathway for foreign nationals to attain lawful residency in the United States through investment in new commercial enterprises (NCEs). While indirect investments through regional centers have been popular, direct EB-5 investments at $800K offer a compelling alternative for investors seeking more control and transparency.

Understanding Direct EB-5 Investments

Direct EB-5 investments involve investing directly into an EB-5 project rather than through a regional center. This approach necessitates meeting stringent criteria, including creating a minimum of 10 full-time jobs and complying with USCIS regulations. Unlike indirect investments, direct investments focus solely on directly created jobs, which must be filled by qualifying U.S. workers and appear on the NCE’s payroll.

Key Differences Between Direct and Indirect Investments

One of the primary distinctions lies in the employment creation process. Direct EB-5 projects count only directly created jobs, while regional center projects can also include indirect and induced employment. However, regional center projects face a cap on the percentage of indirect and induced jobs they can claim towards the total job creation requirement.

Navigating Project Structure

Direct EB-5 projects typically involve simpler structures, with the NCE and the job-creating entity often being the same entity. In contrast, regional center projects may involve multiple entities, allowing for more flexibility in job creation calculations. Loan models are rare in direct EB-5 projects due to the requirement for the NCE to receive the investment directly.

Dependence and Independence

Unlike indirect investments, direct EB-5 investments do not rely on the authorization of a regional center. However, such authorization helps protect investors and to impose regulatory compliant behaviour upon the Regional Center. Direct investors must meticulously adhere to USCIS regulations and provide ample evidence of job creation when filing their petitions. Many fail at this hurdle.

Creating Business Plans for Direct EB-5 Investments

Investors must submit a detailed business plan demonstrating how the EB-5 project will fulfill the job creation requirement. This includes outlining projected staffing needs, job descriptions, and hiring schedules.

Types of Direct EB-5 Investment Businesses

Investors have a range of options, including opening new branches of existing franchises, purchasing and scaling up existing businesses, or investing in retail, wholesale, or restaurant ventures.

Investing in Existing Businesses

While allowed, investing in existing businesses requires thorough restructuring to qualify as an NCE. Investors must ensure that the investment leads to significant staff count or net worth increases or results in the creation of a new business entity.

Involvement and Decision Making

Direct EB-5 investors are expected to have some level of involvement in managing the NCE. The extent of involvement depends on the management structure of the business.

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I must firstly acknowledge the patience and availability that Peter showed during my investment process, he adequately broke down every step to my understanding and sincerely communicated with me about issues of concern. We were online even after hours to address my concern. Thanks Peter,
Thanks Residency invest. Nice doing business with you.

G. Williams, Liberia

I would like to congratulate Residency Invest Limited on the outstanding service provided to me. Indeed, the very prompt replies to all my inquiries as well as the willingness to go the extra mile to help me and my Son in any way possible have deeply impressed me.

S. Pai, UAE - Indian Investor

Nick and Residency Invest offered a brilliant service to help me prepare to move my family to the US….unbelievably it is easier than applying for some visas to go on holiday, the paperwork is not overwhelming and Nick holds your hand throughout the process……Nick’s communication was always excellent and he has provided excellent referrals to accountants and lawyers to assist with all aspects of the move. I would whole heartily recommend Nick to anyone contemplating the US, and it is a pleasure to deal with a really honest efficient person.

Paul H, London

It was pleasure interacting with Nick. During our interaction with him, we found him to be knowledgeable and patient. He wasn’t in hurry to “close” transaction. Nick has good experience with EB5 process which was of great value while selecting the “correct project” to invest in.

Indian Investor, Singapore

Residency invest was transparent and were well experienced to guide us through the entire process, which can be quite arduous. They were forthcoming with various options and indeed were well informed and connected to ensure our dialogue with the right contact at both the LLC and the legal teams. Indeed a pleasure to have dealt with them and would strongly advocate them for any requirement on the said EB5 immigration process.

A.K, Mumbai, India

Through my experience with Residency Invest I found that they concentrated on every little concern of mine providing perfect solutions. They are very well experienced with EB-5 process and can provide the best advice. Peter and Nick have very good followup and they were always available to discuss my concerns regardless time zone differences and weekends. I really do appreciate their work and would recommend working with them.

S.H, Egypt

Excellent service, fast and efficient. Brilliant staff. Thank you.

Stephen Evans

They were kind, caring and well informed. I would certainly use them again

Anne Hawker

We highly recommend Residency Invest for anyone wanting to apply for a US green card through the EB5 process. The team is thorough, efficient and friendly – we couldn’t have asked for a better combination! Helped us turn around the entire EB5 application in less than 2 weeks.

V.M, Hong Kong - Indian citizen

Nick has guided us with our EB5 applications. He manages the process really well, is responsive and always available to discuss. He made the process so easy.

A.S, HK - (Indian Passport Holder)

Thanks to a wonderful team for your resilience. I would have not continued if not for your support.

Nigeria

Residency Invest is a very professional setup who keep their client’s interests as key when suggesting strategies for applying to the EB5 program. We were very happy in our dealings with Residency Invest and can recommend them unconditionally.

SD, Singapore - (Indian Passport Holder)

From that first telephone conversation with Peter it was like re-connecting with an old school mate. Since then he has been very helpful and very prompt in responding to all my inquiries & providing priceless guidance all the way.

Residency Invest have indeed carved a niche for themselves as far as the EB-5 Visa process is concerned. It’s been a great pleasure working with them.

O. Ekiugbo, Nigeria

Keeping life simple! Always helpful, efficient, speedy and no fuss. The process is easy and the representatives are always wonderful, polite and personable. I can highly recommend their services. Transaction was processed professionally.

Victoria Quaile

I used the services of Residency Invest for the Eb-5 visa program. RI was extremely helpful in all the key aspects of Eb5: Identifying the regional center, selecting the suitable investment opportunity/project, coordinating with the regional center and the legal firm, filing of the Eb5 I-526 application… I strongly recommend anyone evaluating an Eb5 visa to connect Residency Invest.

A.M, Mumbai, India

I used Residency Invest to apply for an Eb-5 visa and the service was exceptional from the initial phone call, to the filing of our I-526 petition and beyond. I am still kept well up to date on application and project progress.

S.S, Delhi, India

While applying for an American visa, Nick and his team were super helpful. At a time when we were overwhelmed with the requirements, they broke it down for us and helped us navigate the process perfectly.

S.M, Hong Kong

Residency Invest was very professional and transparent on their advice on the application process for EB5. What impressed me most was their responsiveness to all the questions and follow-ups process to ensure the completeness of application. I would highly recommend Nick in case you are looking for some prompt and efficient guidance on the process.

A.W, HK - (Indian Passport Holder)

Having decided to make an investment to facilitate US immigration through the EB5 program, we identified the US Immigration Fund -NY, LLC as the regional centre and the 101 Murray Street Project to invest in. An investment in a project specially under the EB 5 program is complex both in terms of assessing project risks and in understanding the immigration related process. Residency Invest assisted us through this and the communication and documentation was clear, efficient and quick. Would recommend their services and projects without hesitation to others following a similar path to ours.

S.C, India

I have had the pleasure of dealing with Residency Invest as my advisory partner in the EB5 processes. I am glad to say its been a wonderful experience. They shared all aspects of the process, were accessible when needed and have been in touch with updates on a regular basis. The Eb5 process facilitation is an essential role and its good to have a trusted partner.

P.A , Mumbai, India