EB-5 Direct Investments (New/Existing Enterprises)
For investors seeking to establish a new business, or invest in the expansion of an established US business, the EB-5 Direct Investment avenue may make more sense than a Regional Center investment.
The minimum investment required for the direct pathway is $1 million, unless the business being created or invested in is situated within a government specified Targeted Employment Area, or TEA. In such cases, the minimum investment requirement drops to only $500,000.
While this type of investment has the benefit of giving you more control, it also comes with the onus of proving the creation of 10 full time jobs (W-2 employment positions) for US nationals within 2 years of your visa petition being approved.
This typically requires the submission of payroll and tax submissions for the positions created. The same requirement also applies in cases where job losses are avoided as a direct result of the investment. If the business or enterprise is situated in a TEA, proof of this needs to be provided as well.
The Direct EB5 pathway also makes provision for investors seeking to pool their resources into a larger collective enterprise, provided that the individual investors still individually meet the 10 position job creation requirement, in aggregate. In the case of investment pooling, the minimum investment requirements remain the same – $500K inside a TEA, and $1 million outside of these areas.