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What management obligations are required of the investor to participate in the investment?

Under the EB-5 program, the investor must be “active” in the management of the EB-5 investment, which means the investor must, in some form, engage in the management of the new commercial enterprise, either through day-to-day managerial control or through policy formulation. The EB-5 program specifically states that an investor will qualify as “active” if they are a “limited partner” and the limited partnership agreement provides the investor with certain rights, powers, and duties normally granted to limited partners under the Uniform Limited Partnership Act. This allows the investor limited participation in the EB-5 partnership's day to day activities. Additionally, this structure allows the investor to live where he or she pleases without any obligation to actively manage the EB-5 investment. Most importantly, the limited partner is only liable to the partnership to the extent of their investment. This structure protects the investor, allows limited participation, and is accepted by the USCIS.

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