What are the obligations of an investor applying for and participating in the EB-5 Immigrant Investor Program?

The EB-5 Immigrant Investor Program gives foreign investors the opportunity to obtain a green card that would give them the freedom to live and work in the U.S. if they meet certain requirements set out by the Program.

The EB-5 investor has two choices when applying for the Immigrant Investor Program. He or she could qualify for the regular Immigrant Investor Program or for the Regional Center program.

If the applicant chooses the regular program, he or she must meet three requirements.

The first is the minimum investment amount of $1 million, or $500,000 in a targeted employment area (TEA). The second requirement is that the capital must be invested in a new commercial enterprise (there are certain exceptions). Third, the investment must lead to the direct creation of at least 10 full time jobs for U.S. workers.

The minimal capital required for investment must be have proof that it was obtained from lawful sources.

Capital doesn't have to be only cash, it can be tangible items like equipment, inventory and property.

The EB-5 investor may choose instead to invest in the Regional Center Program.

A regional center appeals to a significant amount of EB-5 investors. It has many advantages as it is less restrictive than the regular Immigrant Investor Program. While the regular program requires that the investor's funding create 10 direct, full-time jobs, a regional may substitute for indirect or induced jobs.

Additionally, when investing in the regular program, the investor is required to take a more active role in the development of the new commercial enterprise, whereas, Regional Center Program investors may take a more limited role. The investor may choose to be a limited partner or only take part in the policy creation. They do not have to be involved in day to day management like they may have to with the regular program.

This is why the Regional Center Program appeals to many investors who are more concerned with obtaining their green card than making a return on their investments.

Another benefit of the Regional Center Program is that it has no requirement that the investor must live in the city of their investment. They can live anywhere in the United States.

For more information about investing in Regional Centers click here.