Tips For EB-5 Compliance

It's easy to get overwhelmed when researching the EB-5 Program. A complex and highly regulated program, the EB-5 visa program requires investors to obtain a team of professionals who can guide them through the planning and forms stages. These tips for EB-5 compliance, however, can help investors traverse the sometimes-challenging world of EB-5.

EB-5 is an U.S. immigration program that encourages foreign investors to invest capital into EB-5 projects (U.S. enterprises) that create jobs for qualified U.S. workers. In return, these foreign investors receive green cards for themselves and their families.

On the surface, the program seems fairly straightforward, however, foreign investors find out very quickly just how many rules and regulations there are and how much paperwork and planning is involved when investing in the program.

Why is EB-5 compliance important to an investor? If done right, being EB-5 compliant will help investors get the conditions removed on their visas as fast as possible. They and their family will then receive green cards.

Therefore, EB-5 compliance is a subject on many investor's minds when they conduct due diligence on the program, but what exactly is EB-5 compliance? The EB-5 Program is full of complex rules and regulations. EB-5 compliance means that the investors are providing evidence such as documents to show compliance.

Important tips for EB-5 compliance:

What do you need to show in order to be compliant?

  1. Information about the EB-5 project;
  2. The placement of the investors' capital in escrow;
  3. The movement of the investors' capital into the EB-5 project;
  4. Ensuring that the capital is used on the project and does not make its way back to the investor;
  5. That the investment maintained risk;
  6. and, The investor must prove job creation.

Who do you need to get help from to ensure compliance?

  1. EB-5 agent
  2. Immigration attorney
  3. Accountant
  4. Economist
  5. If you're going the regional center route, a good regional center and EB-5 project team

What documents should you collect?

  1. Any documents that show the capital came from lawful sources;
  2. Escrow account documentation;
  3. The EB-5 project's bank account statements;
  4. The documents and records that show the investor's capital being transferred to the EB-5 project;
  5. Statements from the EB-5 project showing that the money is being used for what it was supposed to be used for;
  6. and, Proof of job creation such as W-2s or economic models.


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