Do You Need to Actively Manage a Business to Qualify for an EB-5 Visa?

For many, the EB-5 visa program sounds like the perfect solution to staying in the United States long-term with their families. But once people hear about the investment part, some worry that they’ll have to uproot their lives just to manage a business in the U.S., which is understandable.

However, the truth is that the EB-5 program does not necessarily require you to actively run a business in the United States. In fact, the program is built to allow for a more hands-off engagement, especially if you invest through a regional center.

In this article, we will help you understand the kind of involvement the program expects from you, as well as how regional centers make passive investment possible.

What Is Your Role in the EB-5 Program as an Investor?

While EB-5 investors must put in a minimum amount of $800,000 in a U.S. business, investing is not the only part of the process. U.S. immigration law says investors must be engaged in the management of the new commercial enterprise. That may sound like full control or day-to-day work, but it doesn’t have to mean that. In reality, you can meet this requirement in two ways:

1. Direct investment: This means you take part in daily operations, hire staff, oversee business activity, and make decisions.
2. Passive investment: Here, you play a limited role by taking on responsibilities typically associated with company leadership without handling daily operations.

Most EB-5 investors choose the second option through a regional center. Eventually, this setup allows them to meet the EB-5 requirements without taking on a time-consuming role. As long as the business plan is followed, at least 10 jobs are created, and the investment remains at risk until the right time, you have done your part.

Why Most Investors Prefer the Passive Role

Below is an overview of why passive investment works for most EB-5 investors:

1. Less Complexity

Running a business in the U.S. is not easy, as it requires in-depth knowledge of U.S. laws. Moreover, many EB-5 investors are entrepreneurs or professionals who already have successful businesses or careers in their home countries or in the U.S. As such, they don’t have much free time on their hands. By choosing a passive role, you avoid the time, money, and constant attention that managing a business requires.

2. No Need to Fully Understand U.S. Business Laws

The U.S. business system is different from that in many other countries. That is why starting and managing a business in the U.S. often requires a full understanding of things like employment laws, state and federal taxes, and industry standards. Many EB-5 investors don’t have this kind of background, and they don’t need to learn it to obtain a Green Card. By choosing a passive role, you are free from the need to become an expert in U.S. business law or market trends in a short time.

3. Minimal Restriction Relative to Your Location

You can invest in a project located anywhere in the U.S., even if you plan to live in a different city or state. For example, you may choose to invest in a real estate development project in Florida but decide to live in New York or California. This is helpful for investors who value personal freedom and mobility. Furthermore, you can select a strong project in a location that offers the best chance of job creation and timely returns without worrying about being near it.

4. More Time to Focus on Your Business Interests

As stated earlier, many EB-5 investors are already business owners or professionals, with companies to run, contracts to manage, or jobs that demand their time. As such, running a second business in the U.S. would stretch their focus and could even harm their original business. A passive role in EB-5 helps avoid that, as you can keep your business running in your home country or the U.S., while your Green Card plans move forward.

How Regional Centers Make Passive Investment Work

Regional centers are entities approved by USCIS to manage EB-5 projects, and they play a key role in making passive EB-5 investment possible. Here’s how regional centers support passive investors:

• Identification of strong projects: Regional centers identify strong projects, and they work with other professionals to ensure a project creates the required number of jobs. They check demand, prepare financial plans, and set up the legal structure, which reduces the investor’s research burden. You get to partner with a business that fits EB-5 rules and offers a reasonable chance of success.
• Better fund management: In regional center projects, investors’ funds often go into a larger pool with other investors, and the regional center manages the money. This setup ensures that funds are used correctly, while keeping the project on track.
• Communication and updates: Good regional centers provide regular reports to both the investor and USCIS, including project milestones, spendings, job creation, and timelines. Some even hold webinars or Q&A sessions, so you can ask questions and stay involved at the right level.

Find Low-Risk Regional Center Projects With EB5AN

Most investors choose the passive route because it fits their lifestyle, skills, and goals. They can meet all immigration rules, support U.S. job growth, and work toward their Green Card without taking on a complex business role. By investing through a regional center, you have more freedom to focus on your family and plan your future in the U.S. without stress.

However, it all starts with choosing the right project, and you need a strong team like EB5AN behind you to do so. With a history of working with well-structured, fully compliant regional center projects, EB5AN has supported 2,700+ families around the world to become lawful permanent residents in the U.S.

Book a free call today to explore EB5AN projects designed to protect your investment and support your long-term goals.