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Direct EB-5 vs. RC EB-5

DIRECT EB-5 vs. RC EB-5

Items Regional Center EB-5 Direct E-B5
Number of Jobs Based on industry job creation formula 10 jobs
Job Creation Direct, indirect, and induced jobs Direct jobs
Investment Type Indirect investment Direct investment
Minimum Investment $500K in TEA / $1M in Non-TEA $500K in TEA / $1M in Non-TEA*
Management Regional Center appoints management company Investor manages the company
Ownership Investor provides a loan to company Investor has equity ownership
Flexibility Investor can live and work anywhere in the U.S. Investor must reside in the same location as the company to operate it
Control Investor is a member of the project Investor has full control over the company
Timeframe Investor takes 12-16 months to get approved** Investor takes 12-16 months to get approved**
Source of Funds Investor has to show/prove source of funds Investor has to show/prove source of funds
Experience Investor does not need to be experienced in the project industry Investor must be experienced to operate the company in the selected industry
I-829 Petition Investor only shows impact of the investment backed by Economist within 2 years Investor has to show names of 10 employees that have been hired full-time within 2 years
Return on Investment Investor gets lower ROI for low-risk RC projects Investor gets higher ROI for direct management and control

 
* The business will likely require more than $1M to operate no matter where you establish it (TEA or Non-TEA)
* Paying salaries for 10 employees for 5 years at minimum wage will cost more than $500K in salaries
** According to USCIS website, as of April 30, 2014, the average processing time for I-526 adjudication is 12.4 months. However, based on CFIG’s experience with the USCIS the actual adjudication processing time may be longer or shorter

 
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