People investing in this method are needed by law to invest in a commercial enterprise that creates directly minimum of 10 new and directly full-time jobs. The investment is done alone, there is no pooling of EB-5 investments. The jobs per EB-5 investor must last for at least 2 years from the date investor get legal permanent resident status in the US.
TEA or targeted employment area is the region with a 150% unemployment rate of the national average. Also, it could be a rural region (an area outside an MSA – Metropolitan Statistical Area). A rural area can’t have over 20,000 population. It must be on the edge of a municipality with 20,000+ citizens. In rural EB-5 projects, investors get expedited processing and 20% EB-5 visa set-asides from 10,000 EB-5 visas yearly allotment.
As stated above, an investor must think about starting a business that must create 10 full-time jobs. For example, if you are interested in establishing a new gas station, you must consider if a specific single gas station can directly create and maintain ten full-time jobs.
Mostly, a single gas station can possibly create around 3-5 jobs that are full-time. Your investment will be qualified for an EB-5 USA investor visa if you establish more than one gas station at multiple new locations and this investment creates at least 10 full-time jobs across all those areas. Similarly if opening a single restaurant can’t create and sustain ten full-time jobs, it would not be qualified for an EB-5 direct investment. For being qualified, an investor requires multiple new locations.
Since direct investment is done via a permanent EB-5 investor program, there is no possibility of any expiration dates. Thus, investors can rest assured of long-term stability compared to the regional center program. As equity investments, EB-5 direct investments are more likely to provide higher return rates than low rates provided through regional center investments. Investors considering direct investments need not worry about redeployment. Unlike regional center investments, direct investments don’t have exit-time problems.