With the EB-5 investment program, foreign nationals have the option of investing $1 million into their own business or investing $500,000 in a regional service center that pools their investment with those of others.
The regional investment option is an increasingly popular choice for many investors. But some people are still confused about how the program works.
One of the most common misconceptions about the program is that the size of the project in which you invest in matters. This is not the case.
Pooling the investments of many separate EB-5 investors has become one of the most popular options for funding multimillion dollar projects. The visa program doesn’t put any limits on the number of investments that can be combined.
So, for example, if you have a project that costs $50 million, you could have 100 foreign investors who put in $500,000 each.
Similarly, smaller projects can use EB-5 investments as well. So if you have a project that requires only $500,000, you can use the investment from a single visa applicant.
The issue of size only really matters in relation to the number of jobs that must be created by each $500,000 investment. Regardless of how big the investment is, a minimum of 10 jobs must be created for each participating investor.
So with the above $50 million project that was funded by 100 investors, a total of at least 1,000 new US jobs would need to be created in order for that project to qualify for the visa program. Similarly, with the single investor putting up $500,000 for the smaller project, a total of 10 new jobs would need to be created.
So, in the end, the size of the individual project isn’t the important thing. Job creation is what really matters.