EB-5 Regional Center Investments: More Questions To Consider

EB-5 Regional Center investments have led to thousands of foreign investors and entrepreneurs and their families to gaining permanent residence in the U.S.

EB-5 Regional Center investments enable investors and their families to receive green cards which allow them to live, go to U.S. schools, work, and travel freely anywhere in the U.S.

In order to obtain a green card through EB-5 Regional Center investments, foreigners must invest a minimum of $500,000 into a new commercial enterprise and create 10 jobs for qualified U.S. workers. This is no small task or investment and it involves a fair amount of risk.

Investors have a lot of research to conduct to make sure the projects are suitable for investment. For example, they must look at EB-5 compliance, business plans, economic and job forecasts, timely development, escrow accounts, to name a few.

Investors need a strong team of professionals to help them navigate the program and all of their investment options.

For EB-5 Regional Center investments, here are some common questions investors should ask themselves when conducting due diligence on potential projects.

  1. Is the private placement memorandum (PPM) strong? It will include the operating agreement as well as the subscription agreement. Basically, it outlines the project's risks. Investors will need a knowledgeable attorney to help decipher the legalese of the documents and determine if the investment fits the investor. What is the exit strategy like and is it contingent on other investors?
  2. Is your EB-5 agent trustworthy? It is important because many foreign investors must rely on the translations of their agent. They also rely on the EB-5 agent to assist with choosing an EB-5 project that fits the investor's interest. ♦ 
  3. Is the EB-5 project's team trustworthy? Does everything that the EB-5 project team say verbally line up with everything that the investor receives in documentation form? Does the team present themselves in a professional manner? Does each team member have a specific areas of expertise or is the team compromised of one or two individuals who act in every role? It may be concerning if the team is only comprised of one or two people who take on the role of bank, developer, lawyer, and economist. ♦ 
  4. Does the regional center have USCIS approval? What is the regional centers designation status? Or has the regional center gone through multiple amendments? It their I-924 form up-to-date? Did they ever receive a I-924 denial? Was the regional center ever investigated by the SEC? Have there ever been any filings of fraud or criminal acts against the project or it's team members? ♦ 
  5. What is the regional center's reputation? What is the project development team's reputation? What are their rates of success with projects that are similar? How many similar projects have they worked on in the past?
  6. Looking at other projects sponsored by the regional center, what was the regional center's I-526 and I-829 success rate? ♦ 
  7. Has the project of interest receive exemplar project or pre-approval from USCIS? Does the project already have investors? ♦ 
  8. What are the regional center project's escrow terms? Do they favor the investor? If the investor's I-526 Petition is denied by USCIS, will their investment be refunded? ♦ 

For more questions concerning regional center projects, consult an experienced and knowledgeable EB-5 immigration attorney who can help guide your through the EB-5 process.

 

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