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What is a New Commercial Enterprise (NCE)?

According to EB-5 regulations, an investor must contribute capital to a New Commercial Enterprise (NCE) that conducts a legitimate, profit-oriented business. This NCE is usually organized as either a limited partnership (LP) or a limited liability company (LLC).

Therefore, the EB-5 investor becomes either a limited partner or a member, while the project’s sponsor acts as the general partner or managing member. Within the framework of the EB-5 Regional Center Program, the NCE uses the invested EB-5 funds to finance the Job Creating Entity (JCE), which can be either in the form of an equity investment or a loan.

The JCE, as the project developer, is tasked with both the development of the project and the creation of jobs, fulfilling the EB-5 investor’s requirements for obtaining a green card.