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What is a New Commercial Enterprise (NCE)?

EB-5 BASICS | EB-5 PROCESS | US EB-5 PROGRAM
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NCE is an acronym for 'New Commercial Enterprise' and the term is used in EB-5 to identify the entity, partnership or LLC that EB-5 petitioners will invest in, and the New Commercial Enterprise is a requirement of the US EB-5 program. This entity is often a different entity from the 'Job Creating Entity' (JCE) which the NCE makes an investment into on behalf of the investors, sometimes in the form of a loan from the NCE to the JCE and sometimes in the form of equity, whereby the NCE becomes an equity partner in the JCE.

There are no restrictions on the type of business investors or an NCE can invest in, as long as it is a new business enterprise or the investment is made into a failing business to save jobs, but in both cases the investment must create or save at least ten (10) jobs per investor.


Creating an NCE is the easiest way to satisfy the EB-5 Visa requirements. Part of the investment requirement is that the enterprise be commercial. The USCIS defines commercial enterprise as any for-profit activity formed for the ongoing conduct of lawful business.

The U.S. Citizenship and Immigration Services (USCIS) provides a list of business entities that qualify including sole proprietorships, partnerships (limited or general), holding companies, joint ventures, corporations, and business trusts or other entities which may be publicly or privately owned. Thus investors are left to invest in any type of legal business entity other than a nonprofit organization.

Another requirement of the EB-5 process is that the foreign investor be engaged in the business. To satisfy this requirement the investor in a direct investment must manage the enterprise, whether through daily supervision and decision-making, but this requirement is waived if the investor invests in a project that is sponsored by an EB-5 Regional Center. By investing in and engaging in a new commercial enterprise, the foreign investor will have met one of the requirements to qualify for the US EB-5 program.

NOTE: The EB-5 investor may also restructure an already existing commercial enterprise but it is important to realize that just purchasing and managing an existing business is not sufficient to meet the job creation requirement of the EB-5 Program.

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Job Creating Entity (JCE)
EB5 Fundamentals


A JCE is a business entity that is responsible for creating and maintaining the required number of jobs (10) for EB-5 investors. The JCE is often referred to as 'The Project'.

The JCE can be any for-profit entity, such as a corporation, limited liability company, or partnership, conducting a lawful business activity that will create jobs in the United States.

Jobs must be created in order for the EB-5 investors to become eligible for permanent U.S. residency. This is often erroneously interpreted as two years. The actual duration of the jobs created is not defined in the regulations.
Allowable Uses of EB-5 capital

The funds must be used for the specific project outlined in the EB-5 offering documents. The JCE may use the EB-5 capital for a wide range of expenses related to the project, including construction costs, equipment purchase or leasing, and other costs related to the development and operation of the project.

The JCE must have a clear plan for the use of the funds, and must carefully track and document the expenditures to demonstrate compliance with the program's regulations.
The Full Amount of EB-5 Investment Capital Must Be Deployed into the JCE

This means that the JCE must receive the entire investment amount, and the NCE (New Commercial Enterprise) cannot retain any of the funds for its own use.

The requirement for full deployment of EB-5 investment capital is designed to ensure that the funds are actually used for the intended purpose of creating jobs and stimulating economic growth. It also helps to prevent fraud and misuse of investor funds.
The Investment Must Be Sustained 'At-Risk'

In EB-5, "at-risk" refers to the requirement that the investor's capital investment in the new commercial enterprise (NCE) must be placed at risk and committed to the project in order to be eligible for the EB-5 visa.

This means there can be no agreements in place that would guarantee the return of the investment, except in cases where the investor's petition is denied.

The capital investment must be actively used in the business and the investor must bear the risk of losing the investment in order to qualify for the EB-5 program.

This requirement is designed to ensure that the EB-5 program is used for job creation and economic development purposes, rather than as a guaranteed path to citizenship or as a form of passive investment.
Premature return of EB-5 capital

The premature return of EB-5 capital refers to the situation where an EB-5 investor receives the return of their investment capital before the end of the required 2-year at-risk period, or they risk losing their eligibility for permanent residency.

In order to remove conditions on their green card and obtain a permanent green card, the investor needs to provide evidence that they've appropriately sustained their investment and that the investment had created the required number of jobs.
JCE Must Comply with Reporting Requirements

The JCE must follow strict regulations and reporting requirements, including providing regular updates to EB-5 investors on the progress of the project and how their funds are being used.
Can the NCE and the JCE be the Same People?

The Regional Center Program does not prohibit common ownership of the NCE and the JCE. At times the principals of the NCE and the JCE are the same, and at others they are separate entities.