After the enactment of the EB-5 Reform and Integrity Act of 2022 (RIA), it is not possible for multiple investors to jointly invest in a single direct investment project. Pooling of funds is only possible through regional center investments.
Within the EB-5 program, most investors choose to invest in regional center-sponsored projects. These projects offer a “hands-off” approach to managerial duties. In contrast, direct investments are often favored by those who want full control over their investment. A direct investment can only have one sole investor.
Direct investments can only count direct jobs towards employment creation, which are positions created by the project itself. These must be full-time, permanent, and filled by qualified U.S. workers.
While an investment’s projected job creation is initially demonstrated within the business plan of the I-526E petition, actual employment is proven through Form I-829. If United States Citizenship and Immigration Services (USCIS) determines an investment has satisfied program regulations, the petition will be approved. The investor is then granted permanent U.S. resident status.
Since pooling funds is no longer permitted in direct EB-5 investments, if an investor exits a direct investment at any stage, this will only affect their own job creation calculation.
However, a carefully constructed exit strategy is necessary to protect all investors. Direct EB-5 investors can consult with an experienced EB5 immigration attorney for best practices.
