eb-5 regional center investment
In 1992, in an effort to encourage and increase foreign investment through the EB-5 category, Congress created the EB-5 Regional Center Pilot Program (EB-5 RC Program). Despite having been in existence for over twenty-years, the program remains a “pilot.” While efforts are being made to have Congress authorize this program as a “permanent program” the program as it stands today, requires reauthorization every 3 years. The current program is expected to sunset in September 2015. The Regional Center Program in many ways mirrors long active and successful investment-employment based programs in the United Kingdom, Canada, Australia, and other foreign nations. However, with the recent termination of the Canadian investment program, the EB-5 RC Program has become one of the most affordable programs. This programs popularity is based on the following factors:
· An investor is not required to be involved with the day to day operations;
· EB-5 Regional Center Program does not require that the foreign investor's enterprise itself directly employ 10 U.S. workers like the EB-5 Direct Investment Program, but it is enough if 10 or more jobs will be created directly or indirectly as a result of the investment;
· Allows investor the opportunity to invest in professionally directed and managed investments; and
· Allows investor the flexibility of investing in one State and residing in another State.
It is essential not only to recognize but understand that there are two distinct EB-5 investment programs. While both programs have many overlapping requirements, there are distinct differences between the two programs. A prudent investor must analyze both programs to determine which of the two is best suited for the investor, however, the end result is the same – residency in the United States.
The remainder of the chapter will discuss the specific requirements for a successful EB-5 investment, whether it be a direct EB-5 investment and/or an investment through an EB-Regional Center Program.
· An investor is not required to be involved with the day to day operations;
· EB-5 Regional Center Program does not require that the foreign investor's enterprise itself directly employ 10 U.S. workers like the EB-5 Direct Investment Program, but it is enough if 10 or more jobs will be created directly or indirectly as a result of the investment;
· Allows investor the opportunity to invest in professionally directed and managed investments; and
· Allows investor the flexibility of investing in one State and residing in another State.
It is essential not only to recognize but understand that there are two distinct EB-5 investment programs. While both programs have many overlapping requirements, there are distinct differences between the two programs. A prudent investor must analyze both programs to determine which of the two is best suited for the investor, however, the end result is the same – residency in the United States.
The remainder of the chapter will discuss the specific requirements for a successful EB-5 investment, whether it be a direct EB-5 investment and/or an investment through an EB-Regional Center Program.