You are here[HOT] Direct Individual EB-5 case -- Is it for you?

[HOT] Direct Individual EB-5 case -- Is it for you?


Our office can also help those EB-5 investors who, for various reasons, decide not to pursue a Regional Center EB-5 case, and instead, decide to pursue a direct, individual EB-5 case. We believe that the most important aspect of immigration services rendered in connection with a direct, individual EB-5 case is to obtain detailed facts and analyze the facts in relation to the existing EB-5 law, so that you can properly advise the U.S. business and/or alien EB-5 investor so that they can properly structure the investment in compliance with the EB-5 law.

"Direct EB-5" or "Individual EB-5" case is a direct investment-based EB-5 case by an individual, requiring either $1,000,000 USD or $500,000 USD, depending on whether applicable geographic area is a Targeted Employment Area. Regional Center-based EB-5 case differs from "Direct, Individual EB-5" case in very important aspects:

1. RC based project involves multiple number of investors, often exceeding 100 or 200 investors. Investors in a particular project can be either U.S. citizens, green card holders, corporations or foreign alien investors (who are seeking green cards). In other words, foreign investors whose primary (or secondary) goal is to obtain green cards through their investments in the subject project can invest along with corporations (profit or non-profit) other other individuals who are not seeking green cards.

2. In Regional Centers, indirect and induced jobs are also given credit, in addition to direct jobs. This is the crucial reason why most investors prefer Regional Centers over Direct EB-5 route.

There may be certain limited situations where the EB-5 investor may prefer Direct EB-5, such as where the primary objective of investor is to attempt to establish a successful business in the United States and they possess experience and financial ability, as well as the willingness to invest time and effort, to achieve this objective. This section will contain helpful information related to Direct, Individual EB-5 cases.

I have two questions:

1. Can a group of EB-5 investors do a direct EB-5 investment? and if the answer is yes, then are they all required to be activley involeved or manage the project? Can they still be passive?

2. In a RC EB-5 case, can some investors' job counting be entirely based on indirect jobs and/or induced job?

1. Yes, but the capital investment amount and the job-creation requirement must be met for each individual investor. Yes, they must be involved.

2. Yes.

For any detailed info, paid consultation is strongly encouraged.

I am an entrepreneur seeking 3 Chinese EB5 investor to start a California based business that will have patent pending Tablet computer accessories manufactured in China. We plan on hiring over 100 workers in California over the next few years.  I hold an MBA and am assembling a tier 1 management team. .

These investors would have voting seats on our board of directors. Would there be any government restrictions necessary?...how often the board met, absence from meetings, etc?

No.

Thank you so much for the answers. One following questions is: How the involvment of the investors measured? How active is active?

Voting power should suffice on policy issues should suffice. Where there are multiple investors are involved, it is impossible to have every investor involved in daily management.

thanks for the explanation, then does this mean they all could be represented by one managing member vote and they all are simply members in an LLC? or each investor should have at least one vote in the LLC?

I would feel more comfortable with one vote for each investor in the event they choose to exercise it. But the key is in what kind of actions. It gets legally complicated on this issue.

thanks, but this brings up another question. Do you mean one vote in the LLC, or one vote for each investor on the level of the borrowing company's decision making platform?

in LLC.

What if there were different kinds of investors involved in the project of a Regional Center? For example, 100 investors and out of these 100, 70 are EB-5 investors. The number of jobs that need to be created is 700. True? This is more easily attainable if there are also non EB-5 investors involved in the project, it seems.
Basically my question is when calculating the number of jobs that are being created,is the number of total jobs counted for the whole project (even though the EB-5 investors make only 70% of the funding pool)
OR
is the number of jobs created looked at pro rata share. ie. if there are 750 jobs created and the investment was 100 mil (70 mil EB-5 investors), then the jobs attributed to the Eb-5 investors is 750*0.7=525.

Thanks

In any EB-5 project, all jobs created for the project can be allocated to just EB-5 investors. Read the regulations. It's there.

Theoretically, even if there was one EB-5 investor out of 100 investors, all jobs created from this single project can be credited to one EB-5 investor.

I have a few projects that might be eligible for an EB5 Investor
One is in the Hospitality Industry and the others are in Media Production
What is the best way to get the projects in front of the right EB5ers?????

There appear to be various EB-5 seminars designed to help these. Just google "EB-5 seminar" and see what comes up.