Passive or Active EB-5 Investment?

Difference between passive and active EB5 investment.

EB-5 visa allows immigrants seeking to enter the U.S. to engage in a commercial enterprise that will benefit the U.S. economy by substantial investment of million dollars (or only half of this amount, if the investment is made in Targeted Employment Area) and creation of at least ten jobs for U.S. workers. Additionally, the regulations require investor’s involvement in management or policy making of the EB-5 enterprise.  However, the USCIS deems a limited partner in a limited partnership sufficiently fulfilling the latter requirement. This offers you high level of flexibility, so you can choose between individual active investment and more passive investing into specific project provided by the Regional Center. Let’s take a look which option is the right for you.

Imagine that you are a young professional whose dream has always been to open and run a beautiful ski resort in Vermont and live in the cottage nearby. Recently, you’ve inherited a few millions after your wealthy uncle Bob, so finally you have enough capital to make your biggest dream come true. The EB5 program is ideal for you because it has no educational requirements and what’s more, you don’t need any business or managerial experience. In this case, we would definitely recommend you the individual investments option, because the main driving force behind your arrival to the U.S. is actually to start and manage your own U.S. business. You will have control over your investment and will be truly actively involved in the daily operations of your resort.

Another situation would be if you were a retiree with enough savings who wants to spend his elderly years in sunny Florida by relaxing at the beach. Although still you would like to be able to visit your grandchildren in Europe from time to time and also travel across the U.S. with your wife. You are more interested in the immigration than starting of business and your enterprise would not create ten jobs for U.S. citizens alone. In this situation, investing in the Regional Center is perfect option for you. You can become limited partner who has a limited policy-making involvement without worrying about day-to-day management of your EB5 investment. Another advantage for you is that you can live in Florida but you can invest anywhere else, for example in California. Moreover, as a limited partner, you are only liable to the extent of the amount of your investment.

Apparently, each investment model fits different needs so contact immigrationbiz.com and let us know what are yours preferences. Together, we can find the best option for you.

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  • […] the type of involvement you would like to have within the invested company (See previous article: Passive or Active EB-5 Investment), but in how much capital you would like to invest in the program. To refresh your understanding of […]

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