IMPORTANCE OF REGIONAL CENTERS FOR THE EB-5 Applicant
Our role as an approved Regional Center encompasses many important elements toward the success of the applicant. The EB5 investor program for Indians includes adding to economic growth, job creation, and capital investment in the U.S.
Whether for $1,000,000 or $500,000 investment projects, developments include manufacturing, residential, commercial, or infrastructure. The Regional Center, as a business entity, is subject to USCIS approval, and demonstrates the geographic areas of focus.
Working with hundreds of visa or investor visa program applicants has taught us that no two projects are the same. Each project has its own risks, which can range from low risk to high and all points in between. The degree of risk is often an indication of the potential rate of return for the investor.
RESEARCHING THE EB-5 VISA INVESTOR REGIONAL CENTER
An applicant’s due diligence should also include researching the Regional Center. Others may not have as much success with I-526 or I-829 approvals, which are a part of the overall success. Additionally, some may not have as solid of a track record in terms of returning capital to the original investor(s).
However, a visa or investor visa program applicant must consider the developer of the project even more closely when it comes to potential return on investment. An established EB-5 project developer has a success rate and a track record from other projects via the EB-5 program.
The Regional Center also helps when the applicant is considering becoming part of a much larger project.
For example, suppose the applicant is considering participating in a $50,000,000 project. The applicant needs to be aware of its position within the scope of the project. If $20,000,000 of the capital is raised via a construction loan, the lending institution would have first position.
Consequently, if the project were to fail, the lending institution would be the first to get some or all of its money back or possibly foreclose. If and as funds would remain for a group of EB-5 investors, they would need to be shared.
Although the Regional Center does not act as a financial advisor, it can help with providing important information which contributes to the applicant’s decision process. Regulatory compliance is of the utmost importance.
The Securities & Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) monitor EB-5 program projects. A visa or investor visa program applicant is risking $500,000 or $1,000,000 for a minimum of five years. An applicant should be sure that the developer is in full compliance with U.S. laws and appropriate regulations.
Working with the right Regional Center is an important step toward the success of the applicant’s investment and all decisions related to it.
For more Information on Regional Centers or the EB-5 Program in general, use the provided links below: