Advantages of a Regional Center Investment
The main advantage for an RC is that USCIS will allow the project to count indirect and induced jobs in addition to direct jobs towards the job creation requirement. Direct jobs are actual identifiable jobs for qualified employees employed by the commercial enterprise into which the EB-5 investor has directly invested his or her capital (the fund). Indirect jobs are those jobs shown to have been created collaterally by the project as a result of capital invested in a commercial enterprise affiliated with a regional center by an EB-5 investor. Induced jobs are new jobs that are created within the community where a regional center is located as a result of income being spent by EB-5 project workers. The number of indirect jobs created through an EB-5 investor’s capital investment is based upon a business plan and a detailed economic analysis, which is evaluated and approved by USCIS during the approval and designation of a regional center for participation the Immigrant Investor Pilot Program.
Additionally, investors in a new commercial enterprise affiliated with an RC need not be involved in the day-to-day management of the business. Instead, the investor can be involved in the policy formation of the fund. Usually, the fund (or new commercial enterprise) is organized as a limited partnership or limited liability company. The investor can become a limited partner or member, respectively, and receive all of the benefits of the State’s Uniform Limited Partnership Act or Limited Liability Company Act. Those rights are sufficient involvement for the investor to qualify for an EB-5 visa in the regional center context. The investor need not commit to a certain amount of time directing the business. For some investors, the green card is the only goal of the EB-5 program. For others, the chance to control their business is essential, and in those circumstances, the investor may choose a direct investment over a regional center investment.
Many investors find the regional center investment model attractive because the investor can live anywhere in the United States. He or she does not need to live by the project. Additionally, he or she can work anywhere because employment is not tied to the new commercial enterprise or the project. The EB-5 visa also allows the investor’s dependents (spouse and unmarried children under the age of 21) to move permanently to the United States. The dependents can go to school or work without restriction in the United States.