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Compliance: Take the EB-5 investment path less traveled

Decide between a standard EB-5 investment and a Regional Center by knowing a few key differences

One of the most common questions asked by EB-5 clients is, “Which type of EB-5 investment is best? A standard EB-5 investment? Or a Regional Center?” And the answer we give is always the same, “It depends.” Each program has its advantages and disadvantages, and every EB-5 petitioner has different goals. Petitioners must make a personal assessment and conduct a thorough cost/benefit/risk analysis in order to choose the investment path that is right for them.

These are the core requirements of the EB-5 Program that must be met in order to qualify, no matter which form of investment one chooses: 1) invest $1,000,000 in a new commercial enterprise (or $500,000 if the business is in a Targeted Employment Area [TEA]), 2) prove the lawful source of all investment funds, 3) prove that the investment capital is at risk, and, 4) prove that the investment will lead to the creation of ten full-time permanent jobs (or preserve existing jobs if the investment is in a troubled business that has lost 20 percent of its net worth).

Contributing Author

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Jeffrey C.P. Wang

Jeffrey C.P. Wang is the managing partner and founder of WHGC, P.L.C. Mr. Wang's practice focuses on handling the legal concerns of international and domestic...

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John Frederick Karch

John Frederick (Rick) Karch is a partner at WHGC, P.L.C. and a member of the International Corporate Transaction Group. His practice focuses on financial and...

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