EB5 Direct Investment: Top 3 Advantages Over Regional Centers - Ashoori Law (2024)

FAQs

EB5 Direct Investment: Top 3 Advantages Over Regional Centers - Ashoori Law? ›

The right option for you will depend on your particular goals and circ*mstances. That said, making an EB5 direct investment has certain benefits; these include: 1) more control over the investment; 2) higher earning potential; and 3) no administrative fee.

Generally speaking, the approval rate for an I-526 petition is from about 75% to over 80%. Because it is assumed that an EB-5 Investor who receives approval for the I-526 petition, will apply for conditional permanent resident status, the approval rate for the I-829 petition is around 90% and above.

Regional centers make money based on their projects. Most projects are loan based. The EB-5 investor''s funds are invested into the project. The EB-5 investor makes a small percentage of interest.

Regional centers gather investment funds from multiple EB-5 investors to fund their projects. Regional centers are required to promote economic growth and job creation. The projects sponsored by regional centers are usually large-scale hotel developments and other real estate developments.

Each EB-5 investor in a regional center project must show that their investment has created at least ten jobs for US workers. But unlike with a direct investment project, the regional center option allows both “indirect” and “induced” jobs to be counted toward the employment requirement.

EB-5 visa regulations dictate that the investor's capital needs to be "at risk" and no guarantees are allowed to be offered to the investor on any return on, or of capital. In layman terms, this means that in the process of getting a green card, if not careful, you could potentially lose the entire amount invested.

The EB-5 visa is an excellent choice for foreign investors willing to put down the necessary amount of capital required by the United States Citizenship and Immigration Services (USCIS) as part of the category's strict requirements.

Do EB-5 investors get their money back? EB-5 investors may get the full or part of their invested money back when their immigration and investment cycles are completed. Many regional centers would include the terms and conditions of this exit procedures in the investment agreement or other documents.

If an EB-5 project fails to meet the job creation requirements, it will likely result in exponential losses in capital and a green card denial. The next question is whether investors can have the invested amount reimbursed. The likelihood of reimbursem*nt depends on the investment option.

Investors may lose their money if the project doesn't work out, which could harm their chances of getting a green card. Some EB-5 regional center projects have a history of fraud and poor management, which has led to the loss of investments and jeopardized investors' immigration status.

What is the EB-5 regional center fee? ›

Starting with fiscal year 2024, the fee will be due at the start of each fiscal year between Oct. 1 and Oct. 3. The annual fee, as established in the 2022 Act, is $20,000 for each such regional center, except for those with 20 or fewer total investors in the preceding fiscal year (that is, Oct.

What is the required investment amount for an EB-5 visa? As per USCIS guidelines, the minimum investment amount for an EB-5 visa must be either $1,050,000 or $800,000 if the investment is in a Targeted Employment Area, which can be in a rural area or an area with high unemployment.

The EB-5 Reform and Integrity Act of 2022 has changed the program's minimum investment requirements to reflect economic adjustments. The new minimum investment for an EB-5 Green Card is $1,050,000—which is lowered to $800,000 for projects in targeted employment areas (TEAs).

Upon successful completion of the EB5 visa interview, you should be granted an EB5 visa within about a week. This process takes about 6 to 8 months. Once your adjustment of status is approved or you enter the country on a valid EB5 visa, you are officially a conditional permanent resident for 2 years.

Approval of application for a conditional green card or Form I-526E and receipt of conditional Green Card. After examing the source of funds of the EB5 investor and the business plan of the EB5 Project, USCIS will issue an approval in 18 to 24 months from the date of filing and issue a conditional green card.

USCIS expressly provides that EB-5 investments must boost job creation in the United States. If an EB-5 project fails to meet the job creation requirements, it will likely result in exponential losses in capital and a green card denial.

Processing times for EB-5 can vary. The initial petition (Form I-526) can take anywhere from 47 to 71 months to process. From there, the applicant will need to check to see whether a visa is available.

As of April 4, 2023, the USCIS had granted approval to a total of 640 Regional Centers. Prospective investors must understand that a USCIS approval of an EB-5 regional center should not be construed as an endorsem*nt of the regional center or its compliance with EB-5 program regulations.