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How does the process of making returns on my EB-5 investment work?

If I invest in a good EB-5 regional center, how does the process of making returns on my investment work? Can EB-5 investors get yearly returns on their investment throughout the immigration process? Or does this violate the at risk requirement?

Answers

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    Ed Beshara

    Immigration Attorney
    Answered on

    EB-5 regulations and policies authorize the EB-5 projects to make returns on the investment, but cannot provide a return of the investment. Yearly returns on the investment can be made to the investors.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    The regional center program is intended for you to receive a green card rather than to have a significant return on investment. Returns are on average 0.5-1 percent. Generally, projects pay out quarterly or annually. Such payments do not jeopardize the at risk requirement.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    The at risk requirement is not violated if the investor receives profit from his or her investment. No portion of the principal capital invested, however, may be returned to the investor prior to the removal of condition. Whether or not you actually receive any returns from the investment project depends upon (1) the terms and conditions of the agreements you signed with the project and (2) the financial performance of the project.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    If you looking for decent returns, this is the wrong program. At best, good projects offer 0.5 percent. Focus on capital preservation and think of this as an interest-free loan.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    Returns on your investment are fine.

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    Echo Meisheng King

    Immigration Attorney
    Answered on

    When you invest in a loan-model project, the company you are investing in (New Commercial Enterprise, "NCE") will lend your investment capital to the developer (Job Creating Entity "JCE"). The interest to be earned on the loan, which typically varies from 0.25 percent to 1.25 percent, is paid to the NCE by the JCE, and it will be distributed among the EB-5 investors after deducting NCE expenditure. The interest rate will be outlined in the loan agreement between the NCE and JCE. Many projects distribute interest income annually, but some do so quarterly or even monthly. The interest rate of the loan agreement between the NCE and JCE can be fixed and it will not be considered in violation of the "at risk" requirement.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Returns on investments are accepted and common for regional center projects. It is the return of the investment amount that causes problems. It is a minor thing, "on" versus "of," but it is very important.

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    John J Downey

    Immigration Attorney
    Answered on

    This all depends on your agreement with the regional center. Your initial agreements should include an exit strategy for you as well as any return on investment during or after your conditional period.

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