You are hereFrequently Asked Questions / Direct, Individual EB-5 Cases / [Q] What are the advantages and disadvantages of a direct, individual EB-5 case vs. regional center EB-5 case?

[Q] What are the advantages and disadvantages of a direct, individual EB-5 case vs. regional center EB-5 case?


Generally speaking, here are advantages of direct, individual EB-5 case over a regional center based EB-5 case.

1. You have more control (and responsibility) over the direction of the U.S. business which acts as a new commercial enterprise.

2. You can make a lot of money if the business does well.

3. You can decide when to fold or sell your interest in the business.

4. You can invest in an existing business, as long as job-creation requirement is met.

5. You can be more nimble and try to find an alternate solution when something goes wrong.

What are disadvantages of direct, individual EB-5 case compared to a regional center based EB-5 case?

1. You need to spend more time and effort on the operation of the business.

2. You need to take on associated potential liabilities of owning any business.

3. You have to also focus on keeping paper based evidences of job creation.

4. All jobs have to be created directly, and indirectly-created jobs or induced jobs cannot count. This is perhaps the biggest disadvantage of a direct, individual EB-5 case.

5. Your investment amount may well exceed $1 MM when running your own business.

6. If business fails, you can lose all your money.

Ultimately, the differences between the two types of EB-5 cases can be explained using an analogy of driving yourself on a trip or using Greyhound to get there. If you are a good driver, you have more freedom to take your business to a direction you want, but you have to be the driver and paying attention all the time.

We would say that a direct, individual EB -5 case is something you should consider only if you are competent in English language, U.S. business practices and willing to put in a lot of time and effort staying in the location of where you made your investment, and you are really motivated to own and operate your own U.S. business.