Limit To How Many EB5 Investors A Project Can Have?

Are you wondering how many EB5 investors a project can have? Is there a set limit? Or can any number of EB5 investors join?

The answer is no and yes.

The answer is no.

There is no limit to the number of EB5 investors a project can have. There is no limitation on the nationality of the EB5 investors either.

And the answer is yes.

The real issue is the EB5 Program's requirement on job creation.

Every EB5 investor must create 10 direct, indirect or induced jobs for qualified U.S. workers. This means that if a project is projected to create 300 jobs, then the project will be limited to 30 EB5 investors. An EB5 investor would have no interest joining a project where they will not receive credit for job creation.

Job creation is a major requirement of the EB5 Program.

If an EB5 investor does not successfully create 10 direct, indirect or induced jobs, he or she will be denied unconditional residency in the United States.

Regional centers offer EB5 investors a more flexible opportunity to fulfill the job creation requirement.

They typically take on larger projects that create significantly more jobs. Regional centers also can create indirect or induced jobs whereas other projects can only create direct jobs.

You may want to conduct due diligence on a variety of project to see which type your most comfortable with.

A new startup or a small business might project a conservative job creation number and thus only take on a small number of investors. Sometimes they have a job creation buffer for EB5 investors to increase the chances of successful job creation.

EB-5 funding isn't usually the only type of funding a project receives.

A project also usually takes on other kinds of funding in the form of traditional loans or developer's equity.