U.S. Citizenship and Immigration Services requires that an EB-5 investment be made into a new commercial enterprise that creates 10 full-time jobs. Click here to see the full USCIS program requirements.
Stable businesses with good management, a good plan, and the money already in place are more likely to be successful in creating the jobs required for EB-5 investors. Therefore, EB-5 capital is not necessarily needed but it may be raised if it comes at a cost attractive enough to outweigh the added expenses and hurdles of program compliance.
As such, the terms for the first five years of an EB-5 investment are usually more beneficial to the business offering the investment. After five years, and all immigration benefits have been attained, terms usually escalate to offer higher returns to the investors — this either motivates the business to buy back the equity from the investors, or it makes the investment much more profitable.
If an EB-5 investment is made in a Targeted Employment Area (TEA), the investment amount is $500,000. TEAs can be made in either qualifying rural or high-employment areas. Standard non-TEA investments are $1,000,000.
A financial due diligence review should include an evaluation of the business model, corporate structure, the capital stack, market feasibility, financial projections and assumptions, sensitivity analysis, management background, and exit strategy.
Green Card By Investment is sponsored by eb5Marketplace, a firm run by registered securities brokers. They offer a directory of EB-5 investments, so that you can understand and compare your options, and make an informed investment decision. All eb5Marketplace investments feature full due diligence conducted by EB5 Diligence. Have a look at the investments they currently offer.
The primary goal of any investor is getting a Green Card. But just as important should be the full and timely return of your capital, especially considering that USCIS requires an EB-5 investment must be sustained “at risk” until the end of conditional permanent residency.
An immigration lawyer reviews all factors related to immigration benefits. This includes a credible business plan with an acceptable job-creation methodology and exit strategy. An immigration lawyer cannot advise on financial outcomes, but still requires an understanding of business issues that impact immigration success.
Historically, when regional center investments dominated EB-5, commercial real estate projects were the norm. Now with the emergence of direct investments, industries are more diverse, from manufacturing to healthcare companies to call centers — and many businesses are not dependent on urban locations, making it easier to qualify for TEA designation.
The process should start with comparing options, reviewing due diligence, and speaking with business owners in order to select a suitable investment. Once that happens, you’ll sign the subscription documents which make you a shareholder of the company, and transfer funds to the company. The offering documents and I-526 template will be sent to you and your immigration lawyer so that you can file your investor application, Form I-526.