| New Enterprise | Troubled Business | Regional Center | |
| Benefits of Investing $500,000 | Infusion of $500,000 as opposed to $1,000,000 is not as cumbersome. Investor has more control over day to day operations. |
Infusion of $500,000 as opposed to $1,000,000 is not as cumbersome. Investors do not need to create 10 jobs, but maintain 10 already existing positions. Business is already distressed; thus, the investor may bargain for a better deal. Investor has more control over day to day operations. |
Infusion of $500,000 as opposed to $1,000,000 is not as cumbersome. Removes the 10 employee requirement, allowing the investor to qualify without directly hiring 10 people. Does not require the investor's day-to-day management, nor does it require investors to live in the place of investment. Congress gives regional centers top priority, which could mean a quicker path to approval for Form I-526. However, USCIS has yet to officially implement this. Investors do not need to create 10 direct jobs, but his/her investment should create either 10 direct or indirect jobs. Regional Centers are already established. |
| Drawbacks of Investing $500,000 | If business folds within two year period, investor could lose all invested capital. The investor needs to show the creation of 10 jobs or possibly more than 10 jobs if expanding an existing business. Risky because business is located in a TEA. Must usually live in the same location as the enterprise. |
If business folds within two year period, investor could lose all invested capital. The investor needs to maintain 10 already existing employees for a period of at least 2 years. Compounded by its location in a TEA, this business is already in distress. Must usually live in the same location as the enterprise. |
If business folds within two year period, investor could lose all invested capital. Investor needs to show that his/her investment creates either 10 direct or indirect jobs. Risky because business is located in a TEA. Usually offered a position as a Limited Liability Partner, so investor has no control over day to day operations. Moreover, the general partners of the regional center company usually benefit from investors’ investments. |
| Benefits of Investing $1,000,000 | Investor has the option of investing in any type of enterprise anywhere of the U.S. May not be as risky because investment is not made in an area of high unemployment or distress. Investor has more control over day to day operations. |
Investors do not need to create 10 jobs, but maintain 10 already existing positions. Business is already distressed; thus, the investor may bargain for a better deal. Investor has more control over day to day operations. |
Removes the 10 employee requirement, allowing the investor to qualify without directly hiring 10 people. Does not require the investor's day-to-day management, nor does it require investors to live in the place of investment. Congress gives regional centers top priority, which could mean a quicker path to approval for Form I-526. However, USCIS has yet to officially implement this. Investors do not need to create 10 direct jobs, but his/her investment should create either 10 direct or indirect jobs. Regional Centers are already established. |
| Drawbacks of Investing $1,000,000 | Investors may find infusion of $1,000,000 extremely cumbersome and risky. If business folds within two year period, investor could lose all invested capital. The investor needs to show the creation of 10 jobs or possibly more than 10 jobs if expanding an existing business. Must usually live in the same location as the enterprise. |
Investors may find infusion of $1,000,000 extremely cumbersome and risky. If business folds within two year period, investor could lose all invested capital. The investor needs to maintain 10 already existing employees for a period of at least 2 years. The business is already in distress. Must usually live in the same location as the enterprise. |
Investors may find infusion of $1,000,000 extremely cumbersome and risky. If an investor likes to invest in a regional center company, it may be better to invest one that only needs $500,000 in investment. If business folds within two year period, investor could lose all invested capital. Investor needs to show that his/her investment creates either 10 direct or indirect jobs. Usually offered a position as a Limited Liability Partner, so investor has no control over day to day operations. Moreover, the general partners of the regional center company usually benefit from investors’ investments. |
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