EB5 Investors Magazine Volume 2 Issue 2 | Page 24

There is an enduring myth in EB-5 that direct investment projects are reserved exclusively for single investor owner/operators looking to open a business in the United States and earn a green card, while larger multi-investor EB-5 projects incorporating the “loan model” are the domain of regional centers. Like most myths, there is some truth to these assertions; regional centers do almost exclusively sponsor projects incorporating the loan model, and partly because of this additional investor security, regional centers have received the largest portion of EB-5 investment dollars. However, as there is nothing in the regulations preventing direct investment projects from subscribing multiple investors, direct investment projects are now combining their I-526 processing time advantage with the loan model to bring an end to the investor monopoly held by regional centers. 22 E B 5 I n v esto rs M ag a z i n e