EB-5 Visa Investment Options
The EB-5 Investment Visa offers one of the most efficient paths to becoming a permanent resident in the U.S.
One of the first and most important decisions investors must make is selecting the right investment option.
This guide provides a complete breakdown of the two main EB-5 Visa investment types. We will explore the key benefits of each and how they compare to one another.
Direct investments
As the name suggests, direct investments involve investing directly in either:
- A new commercial enterprise OR;
- Expanding an existing business
Direct investors must actively manage the business and create at least 10 full-time jobs for U.S. workers. This must be done within two years of being granted conditional residency.
Key benefit
Direct EB-5 investments offer investors greater control over the project. This means they are hands-on with the day-to-day running of the business and the decision-making process.
Regional centers
Regional centers are the most popular investment option for EB-5 visas. In fact, 95% of EB-5 investors choose to invest in regional center projects.
Regional centers are organisations approved by the USCIS that sponsor various EB-5 projects. They pool investment funds from multiple investors, which are used to finance projects such as real estate development.
The USCIS publishes a complete list of approved EB-5 Immigrant Investor Program regional centers. This page shows all USCIS-approved regional centers, their locations and ID numbers.
To learn more, read our guide to EB-5 regional centers for a more detailed breakdown.
Key benefit
By investing through the EB-5 Regional Center Program, investors can benefit from both indirect and direct job creation.
The USCIS policy statement defines indirect jobs as “those that are held outside of the new commercial enterprise but are created as a result of the new commercial enterprise.”
Ultimately, this makes it easier to fulfil the EB-5 job creation requirement.
Targeted employment areas (TEAs)
Targeted employment areas (TEAs) are a crucial part of the EB-5 Visa Program.
A TEA is simply a specific area that has a high unemployment rate or is considered a rural area. TEAs not only reduce the minimum amount needed by investors but also funnel money into areas that need it most.
TEA status is based on two main criteria:
Unemployment rates
An area can qualify as a TEA if its average unemployment rate is at least 150% of the national average.
Key benefit
Investing in a TEA significantly reduces the cost of the EB-5 Visa. Investments in non-TEA projects start at $1,050,000. However, under the EB-5 Reform and Integrity Act (RIA), projects in a TEA start at $800,000.
Rural area
Based on definitions used by EB-5 regulations, rural areas are those not within a metropolitan statistical area and have a population of fewer than 20,000 people.
TEAs can be accessed through either investment option (direct or regional center). To learn more, read our EB-5 targeted employment areas (TEAs) guide.
Direct vs. regional center
As we have outlined, there are two main EB-5 Visa investment options – direct and regional center investments.
The minimum investment for both starts at $1,050,000 or $800,000 if the project is in a TEA. And while the process is different, both grant a U.S. Green Card (resident status).
The question is, which EB-5 Visa investment route is right for you?
While the two share similarities, there are some fundamental differences, and the choice between the two depends on several factors, such as:
- Investment objectives
- How involved the investor wants to be in the business
The direct investment method typically offers more control but requires active management and a greater commitment of time and resources. Meanwhile, regional center investments provide a more passive approach.
For regional center investors, satisfying the job creation criteria is often much easier. This is because both indirect and direct employment count towards the requirement.
This is one of the reasons why regional centers are overwhelmingly more popular than their counterpart.
How Holborn can help you secure your EB-5 Visa
The EB-5 visa program offers foreign investors a pathway to permanent residency in the U.S. in exchange for substantial investment.
The program offers a wide range of benefits, including the chance to live and work anywhere in the U.S. And while the EB-5 Visa is not a citizenship by investment program, it can lead to U.S. citizenship.
Download our factsheet to learn more about the EB-5 Visa. Alternatively, speak to one of our specialists.
Holborn Pass is an international leader in investor visas. We provide an end-to-end service to support you throughout the EB-5 process.
We are part of the wider Holborn Assets Group, a leading, award-winning financial advisory company with over $2 billion in assets under management (AUM).
We have successfully helped hundreds of individuals and families secure golden visas. To find out how we can assist you, book a consultation with one of our advisers.