What are the 4 main advantages of investing in the Regional Center Program?
Regional Centers are entities that can apply to USCIS for designation to develop projects using capital investment.
There are many advantages to investing in the Regional Center Program.
1. Investors can do not need to manage day-to-day operations of the investment.
Instead, when investing in the Regional Center Program, investors can opt to be involved in policy-making business. EB-5 investors can choose to be members or limited partners. There is no EB-5 Regional Center Program requiring investors to commit a specific amount of time to management or directorship. This is ideal for an investor whose primary goal is to obtain green cards for themselves, their spouses and their unmarried children under the age of 21 years, and not worry about management or control of the business.
2. Investing in the regional center program allows EB-5 investors to live and work anywhere in the U.S.
EB-5 investors who chose the Regional Center Program do not have to live near their investment. Since they are not tied to actively managing the business, they can choose any city in the U.S. to reside in. This is perfect for EB-5 families who want to live in locations with strong school districts.
3. In addition to being about to count direct jobs, unlike the Regular EB-5 Program, the Regional Center Program can count indirect and induced jobs.
Being able to count indirect and induced jobs is one of two main advantages the Regional Center Program has over the regular program. Direct jobs are identifiable full-time positions for qualified U.S. workers that are created by the business where the investment was made. Only regional centers can count indirect and induced jobs.
Indirect jobs are created outside the new commercial enterprise. An example of an induced job could be a supplier.
Induced jobs are jobs created within the community where the business is located. Induced jobs are created within the community when workers, who were involved with the project, spend money in the community. Basically, if the project has an economic impact on the community, induced jobs may be counted.
4. The other main advantage is that regional centers can develop projects in targeted employment areas (TEA) which lowers the minimum investment amount required by the program from $1,000,000 to $500,000.
A targeted employment area (TEA) is an area that is either rural or has a high unemployment rate. Most regional centers take advantage of targeted employment areas because the lower minimum capital amount attracts more EB-5 investors.
To learn more about the EB-5 Program and the advantages of investing in the Regional Center Program, send us a message.