Regional Center Program vs. Direct EB-5

Video Transcript
The reason the program was created was to foment and create economic growth. And that’s done through the creation of permanent jobs in the economy. Now, there’s a big difference between direct investment and Regional Center based EB-5 programs. The direct is you create a company and then you generate ten jobs on your payroll and those are called direct jobs. So you have to keep those in the payroll permanently for five years at least and the risk of that is you have to be involved. You have to be managing and you have the risk, which is the risk for any startup business in the United States, when the economy so dynamic changes happen.

If you have partners, partners, we want to change. You cannot let them because otherwise you lose a green card, so that’s that’s the risk of the direct investment. In comparison, you go to the Regional Center one Regional Center, that’s a specialized in a lot of experience and background And you put together a business plan, let’s say, to build a hotel or a retirement center or or an apartment complex. They pay an economist to do an economic study to see how many jobs can be created. Now we’re talking about direct jobs, just like the other one. And then you have two other types of job recoveries that you can count on, those are called indirect jobs. And then you have something called induced jobs, which is kind of interesting. You pay the employee working in the construction. He needs to put gas in his car, he needs to pay rent and needs to buy food, that multiplies itself. The good thing about that is the jobs have been created and you show it by just have spent the money on the construction. So if the building is there, they spend the money, they have the invoices. You prove the jobs already. So you don’t have to keep them on the payroll. You don’t have to keep them forever. And sometimes the first two years of a construction, all of the jobs we need are created And you don’t have to do a thing, you just have to invest the money. You can live anywhere, do anything. You don’t have to be involved in the day-to-day (operations).

Presented by:
Paul Calixto, Principal Attorney, Law Offices of Paulo Calixto PLLC