The United States of America is well known as the land of opportunity, and that not only goes for the people who are seeking employment or wanting to start their own businesses, but also those from a foreign country who would like to invest in an American business.
Indeed, there are probably more investment opportunities in the United States than anywhere else in the world. More importantly, the US government actively encourages foreign investment via the EB-5 Immigrant Investor Program.
For those that are not familiar with the program, the EB-5 Immigrant Investor Program is a federally approved program that allows a foreign investor to move into the United States and receive permanent residency status in exchange for investing into an a new or existing business, known as a New Commercial Enterprise, a minimum of $1,000,000 or a reduced investment of $500,000 when the enterprise is located in a Targeted Employment Area or a designated rural area.
As we have stated in our previous blog entries, there are two ways of investing in the EB-5 program; the first one, via a Direct Investment, where the foreign investor acquires or creates a New Commercial Enterprise and is personally responsible for the direct creation of at least 10 full-time jobs. The Second way of participating in the EB-5 program is by investing in a regional center project.
On this entry, we will focus on the benefits of investing in a Regional Center project, outlining how this immigration plan and process works by discussing the primary benefits of regional center investment. But first, let’s answer this question:
What Is An Immigrant Investor Regional Center, and what is the difference with the Direct Investment for an EB-5?
A Regional Center is a federally approved organization designated by the United States Federal Government, solely authorized to sponsor capital investment projects for foreign investment under the EB-5 Immigrant Investor Program.
While the regulatory requirements for a regional center investment versus a direct investment are similar in many ways, the principal differences are that a regional center investment offers the added advantages of indirect and induced job creation, an expeditious petitioning process as well as the freedom to live, and work and travel without the responsibility of managing the day-to-day operations of the business. Investors may make a reduced threshold investment of $500,000.00 since regional center projects are located within Targeted Employment Areas or rural areas.
There is a vast majority of projects that offer various opportunities for every type of investor, and there are 1,380 authorized Regional Centers nation-wide.
Next, we’ll discuss the primary benefits of regional center investment.
Benefit #1 – Your EB-5 Immigrant Investor Regional Center Does Not Need To Be Within Your State of Residency
The Regional Center investment model was established in order to manage the investor’s funds; therefore, the investor doesn’t have to be physically present in the business where he or she invests. This gives the ability for the investor to live and work anywhere in the United States, without having to worry about managing a business or creating and maintaining ten full-time positions.
Benefit #2 – You Do Not Have To Carry Out Direct Management Responsibilities
As a foreign investor, when investing in the EB-5 program through a Regional Center, there are two major responsibilities, committing the investment capital to an authorized project and prove the creation of ten jobs. Therefore, there is no need for the investor to be involved in the direct day-to-day issues in the company or business they invest in. This allows the investor to focus on their personal businesses that are not tied directly to their immigration status or to simply get to enjoy all the opportunities that the United States offers.
Benefit #3 – It Will Be Faster For You To Obtain Your Permanent Residency Green Card
It’s no secret that one of the most difficult immigration documents one can obtain is a green card, even though it’s also one of the most sought-after documents from immigrants.
Fortunately, one clear advantage to the Immigrant Investor Regional Center is that it is one of the fastest ways to obtain a green card, this is because the EB-5 Immigrant Investor Program is the only immigration program for the United States that offers Permanent Residency upon approval. So long as the commercial enterprise creates at least ten full-time jobs, and the investment is irrevocably committed.
If there are other requirements you need to get your green card, be sure to consult with your lawyer.
Benefit #4 – Your Dependents Will Also Be Able To Move To The United States
The EB-5 program enables the investor’s spouse and unmarried children under 21 to receive the permanent residence as well.
Benefit #5 – You Don’t Need An Affidavit of Support For An EB-5
One important point to consider is the flexibility of the Eb-5 Program. Normally, before a Petitioner requests the Permanent Residency of the United States, he or she would have to meet all the immigration requirements as set by both the USCIS and American Law. And this means that the applicant, in most cases must have an affidavit of support, which should be signed by a close friend or relative.
However, under the EB-5 Immigrant Investor Program, the Immigrant Investor is not required to provide the abovesaid affidavit. The benefit here is that the Petitioner won’t need to complete an additional immigration step, which should cut the amount of time it takes before he or she can officially immigrate.
It truly is a privilege to receive permanent residency status within the United States, not only for you but for the rest of your immediate family as well. And that’s exactly what the final benefit of the EB-5 program is: Allowing you to immigrate to the United States with your loved ones. But, most importantly, to the added benefits pf the program by itself, with a Regional Center investment, you will have a stress-free immigration process and will receive your Permanent Residency upon approval of your I-526 Petition.
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