• The direct program faces no sunset dates.
figures are in their EIR, and that a comfortable job
creation cushion is present.
• With a regional center project, investors must
rely on multiple things not seen in a direct EB-5
i nve s t m e n t , i n c l u d i n g: t h e r e g i o n a l c e n te r ’s
d esig na tio n m us t re main in tac t a n d in g o o d
s t a n d i n g w i t h U S C I S a n d n o t b e te r m i n a te d
throughout the entire duration of each sponsored
project’s investment period. • Direct EB -5 investments should be backed by
deep pocketed owners/franchisors/companies,
w h o have th e abili t y to su p p o r t jo b c rea tio n
projection targets that may require additional
funding to hire and sustain additional staff if the
initial project funding or operational cash flows
are not sufficient.
• Direct EB-5 investments can only count actual
dire c t jo bs towa rds th e 10 jo bs p e r inves to r
program minimum but they do not need an
Economic Impac t Repor t (EIR) to calculate
projected job creation, which reduces transaction
complexity, time and resources. The direct jobs
are typically calculated by tallying all verified full-
time W-2 payroll employees who work in the given
establishment or project. • Most other key requirements and characteristics
of an EB - 5 transac tion are common bet ween
the two investment types. They have the same
minimum investment amounts, TEA calculations,
options for more or less ac tive management,
at- risk requirements and investor petition
processing times.
• For a regional center projec t, investors must
be conf ident that the projec ted cons truc tion
expe ndi tures and/or reve nue proje c tions are
materially accurate, as one or both of these two
inpu ts are primarily used when calculating a
project’s total job creation. This is a critical point
because if the project’s job creation doesn’t meet
the minimum 10 jobs per investor, the prospective
EB -5 investor will not receive his or her green
card. Therefore, it is important for investors and
their representatives to feel comfor table that
the economists who use these project inputs
have adequately assessed how reasonable these
KEY STRUCTURAL ELEMENTS
FOR A DIRECT EB-5 INVESTMENT
In structuring a direct EB -5 investment, there are a
variety of factors that should be considered in order to
create a strong EB-5 offering.
First, make sure the business entity or Job Creating
Entit y is an established business that has a proven
customer base and track record. Then , also check
so that it is an established franchise with a proven
b usiness c onc e pt that are bac ke d by quali t y,
experienced and well-capitalized operators. They should
have the ability to effectively and profitably operate and
grow new units, identify ideal markets and locations
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