FAQs About EB-5 Investments
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Learn more about the EB-5 program by reviewing the answers to five of the most frequently asked EB-5 investment questions, from capital fund requirements to petition prioritization methods.
FAQs About EB-5 Investments
- 1. PROCEED FREQUENTLY ASKED QUESTIONS ABOUT EB-5 INVESTMENTS Know the answers to EB-5 investment FAQs.
- 2. WHAT CAPITAL AMOUNT MUST I INVEST? FAQ #1
- 3. One primary requirement of the EB-5 program is to invest a capital amount in a qualified EB-5 project through direct investment or a regional center. The minimum required amount is $1.8 million. However, when an EB-5 project is based within a TEA (targeted employment area), the required amount is reduced to half, $900,000.
- 4. WILL MY INVESTMENT CAPITAL BE RETURNED? IF YES, WHEN? FAQ #2
- 5. The capital invested in an EB-5 project needs to remain "at- risk" for at least two years. It is another primary requirement of the program. However, some circumstances may cause that period to be extended. The invested capital amount is sometimes not returned for upwards of 5 years. That is why an EB-5 investor must conduct due diligence of a prospective EB-5 project and examine all the project documents. Aside from the potential delays, some EB-5 projects might only return part of the money. You can consult an EB-5 attorney to fully understand the terms and conditions with regards to capital repayment.
- 6. DOES EB-5 "AT-RISK" MEAN THE BUSINESS IS RISKY? FAQ #3
- 7. Well, not necessarily. An EB-5 investment must remain "at-risk" for the two years of the investor's conditional residency period, but it doesn't mean that it must be risky. What "at-risk" means is that the investment must maintain the possibility of gain and loss for the investment period's whole duration. A careful assessment of the prospective project and regional centers can show investors about the level of risk of an EB-5 project could entail. Checking the track records of project developers and EB- 5 regional centers should be included in conducting the project's due diligence.
- 8. IS A LOANED CAPITAL ALLOWED FOR AN EB-5 INVESTMENT FUND? FAQ #4
- 9. E B - 5 c a p i t a l m u s t c o m e f r o m l a w f u l s o u r c e s a n d p r o p e r l y d o c u m e n t e d f o r i t s v a l i d i t y a n d l e g a l i t y . A l o a n i s c o n s i d e r e d a s o n e o f t h e l a w f u l s o u r c e s o f E B - 5 f u n d s . A d o n a t i o n f r o m f a m i l y i s a l s o a c c e p t a b l e a s l o n g a s a d e q u a t e d o c u m e n t a t i o n i s p r o v i d e d . I n v e s t o r s c a n o b t a i n a l o a n f r o m f i n a n c i a l i n s t i t u t i o n s f o r l a r g e r f u n d i n g a m o u n t s a n d u s e t h e i r a s s e t s a s c o l l a t e r a l .
- 10. HOW DOES USCIS PRIORITIZE THE EB-5 APPLICATIONS? FAQ #5
- 11. In the past, United States Citizenship and Immigration Services (USCIS) used the first-in-first-out approach to adjudicate EB-5 petitions. However, that changed into a new method called the visa availability approach last April 2020. This approach means that EB-5 applications are prioritized according to the investors' country of origin. Each country is allocated 700 EB-5 visas each year. The new method allows USCIS to adjudicate EB-5 petitions for investors from countries with immediate visas available. Investors can check USCIS's monthly Visa Bulletin to check for the current status, countries' prioritization, and backlogs. As of September 2020 visa bulletin, China is the only country not considered "current" in the Chart B section that determines the adjudication priority of USCIS.
- 12. For more information on EB-5 investments, see https://eb5visainvestments.com/ T H A N K Y O U !