Whenever we think about E-B5 projects to invest in the United States, we think about tech companies, big real estate projects, and other large investments that will meet all the EB-5 standards. After all, immigrants under the program will need to invest 1,050,000 million dollars and create 10 U.S jobs for citizens with their new investment, so it makes sense to go big and also to look for urban projects.
However, rural EB-5 projects such as hotels still shine and stand a real chance at giving investors a massive benefit. Especially with all of the new rules that have changed the way that EB-5 investments work. Here’s why you need to start looking into a hotel or other rural investment if it comes to making an EB-5 investment.
The New EB-5 Rules
The new 2023 EB-5 rules for the EB-5 Regional Center Program imposes a new minimum investment of $1,050,000 for standard investments, as well as $800,000 for investments in Targeted Employment Areas. Additionally, a portion of the EB-5 immigrant visa quota allows for investments in rural areas, high unemployment areas, and infrastructure projects.
The new law sets aside 32% of immigrant visas for specific EB-5 products, and 20% of immigrant visas are reserved for immigrants who are making rural EB5 Investments. This means that if immigrants want to invest into rural areas of the United States, then visas will be specifically reserved for them and for those projects.
Rural investments are going to keep shining, and one of the best rural investments you can make are hotel projects.
Why Are Rural Projects Still Worthwhile For EB-5 Projects?
For starters, some rural projects might be able to qualify for a targeted employment area depending on where they are located. If the area you are building your project in has exceptionally high unemployment in comparison to the national average or is rural enough by having less than 20,000 residents according to the U.S census, then you only need to invest $800,000 into the project, which is much easier on some investors.
Additionally, the 32% of visas that are set aside for TEAs are reserved, which means that if you invest in a TEA area, then you can receive priority processing for your investments. This means that you can ‘skip the line’ and can complete the immigration process that much faster than other visa applicants.
Finally, rural projects have a little less competition, especially if you are working in an area that has a lot of investments. Urban areas and urban investments are often closely fought over by investors, but rural areas might be a little easier to get into depending on the area you are in as well as the project you want to create. Again, it all depends on location, but you might find some advantages if you invest in rural areas rather than in urban ones.
So now that you know why you should be investing in a rural project, let’s look at why you need to take advantage of hotel projects under the new set of EB-5 rules for your next big investment.
Hotel Projects Almost Always Deliver On Job Creation
For some projects, raising and investing the money is the easy part, but being able to fill those ten required jobs for U.S citizens can be the hard part of the EB-5 program. However, since a hotel has more than enough job applications that people can use, then a new hotel project is an excellent job creation source.
You’ve got a higher than average chance of creating more than the required ten jobs as well, and with the extra jobs that you create you can get some serious benefits. So no need to worry about how to fill your jobs with American citizens, because with a good hotel you might need to turn away applications because so many will be coming to you!
Hotel Projects Are Safe Investments And Easy To Understand
Additionally, most investors know that a hotel is going to give a return on their investments, because as long as it is in the correct location, everyone can use a hotel! Additionally, the structure of EB-5 hotel projects are easy to understand for investors and the revenue models of hotels are very easy to understand as well. So more people are willing to put money towards a hotel, especially if it gives them the chance to work with a trusted international hotel chain.
Basically, a hotel is easy to understand, a lot of people use it, and there’s a lot of money in hotels so people are more than willing to put money in. You can very easily explain your project to foreign investors and you won’t lose them with complicated jargon, which means less confusion and more clarity and clear investments!
You will also be able to create your requisite ten jobs very easily, and investing in a hotel will allow you to fast track getting your visa.
The New EB-5 Rules Make Rural Investments Just As Good As Urban Investments
While you might have your heart set on creating the next big urban business in real estate or technology, and that’s perfectly fine, under the new rules that isn’t the only option anymore.
Rural areas are reserved, can cost less money, and if you pick the right investment (such as investing in a hotel in a Targeted Employment Area), you can find that all the requirements of the EB-5 can quickly fall into place and suddenly you can fast track getting your green card and starting a new life in the United States.
So pick whichever investment that you like, and know that under the new rules you really can’t make a wrong choice. Instead you can focus on picking an investment that is interesting for you and beneficial to the United States, and pretty soon you’ll be seeing success!