The Value of an Approved Regional Center
At American Life, Incorporated, our EB-5 investors enjoy the advantages of navigating the program with the help of an approved Regional Center. But what are these benefits? Today, we’ll talk about how Regional Centers help foreign investors throughout the process in the EB-5 investor visa program.
Job creation differences. In the EB-5 program, the advantage to the US economy is job creation, which is why this is a primary requirement of the program. Investors in the program who do not use Regional Centers need to create 10 direct jobs, which means these jobs must be within the business in which the investor placed capital. Usually, this requires some involvement on the part of the investor to ensure that these jobs are created. With a Regional Center, job creation can be direct, indirect, or induced. Indirect jobs are within those businesses that serve the business in which the investor placed capital, such as its vendors. Induced jobs are those in the surrounding community who have benefitted from having that new business in their area, because the new business drew in more employees and generated more spending in that community.
Day-to-day management. Investors working with the program outside the Regional Centers need to take a more active role in the day-to-day management of the business. While the program allows investors to live anywhere inside of the US regardless of the location of the business in which the investor places capital, this day-to-day management element may cause investors to live near the business. But investors using a Regional Center can be a limited partner, meaning they provide capital and can serve as policy advisors rather than day-to-day managers for the business. That means that investors using a Regional Center can live anywhere they would like in the US because they don’t need to be located near the business.
Targeted Employment Areas. A Targeted Employment Area, or TEA, is an area with greater unemployment and more need for job creation. In the EB-5 investor visa program, the minimum requirements to invest are larger when the business is outside of a TEA. Currently, that minimum amount in a TEA is $500,000, while investments outside a TEA require a minimum investment of $1 million. This will change on November 21, when the minimum investment inside a TEA will become $900,000 and the minimum investment outside a TEA will increase to $1.8 million. Regional Centers generally choose investments within a TEA, which makes it easier for investors to participate in the program using the minimum investment amount.
Now is the perfect time to invest with the EB-5 visa program, especially with the upcoming changes on November 21, 2019. To get started with your new investment, contact our professionals at American Life, Incorporated today. Our investment professionals can help make it easier to navigate the EB-5 visa program. Contact us online, call us at 206-381-1690, or visit office in the US at 2710 S. Hanford Street, Suite 100, in Seattle, Washington or any of our international offices in Shanghai, Tokyo, or London.