Is EB-5 a passive investment?

EB-5 regulations require that the EB-5 investor be engaged in the management or policy formulation of the new commercial enterprise. For regional center projects, EB-5 investors satisfy this requirement by being a shareholder or limited partner in the new commercial enterprise. This means an EB-5 investment through a regional center is more passive than a direct EB-5 investment where the EB-5 investor typically more involved in the management or daily operations of the business.

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