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How long will it take to raise funds from EB-5 investors?

I have seen many people say that to raise the EB-5 funds, it will take at least a year to get the money from investors. A regional center may help get the money faster, but the developer has to pay a high price to the regional center. Is this accurate? How long does it take to raise funds from EB-5 investors? Is there any difference in time between direct investment and with the help of a regional center?

Answers

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Every capital raise is different and takes time, especially for a new project. Since most of the EB-5 capital is raised in China, and since most of the EB-5 agents in China work with existing regional centers, of which there are hundreds, competition is fierce. You might look at markets other than China, where you or someone you trust has good connections and can travel to meet with prospective EB-5 investors. Countries like Vietnam, India, and Brazil are all emerging EB-5 markets. Each EB-5 project has to determine what its strengths and weaknesses are and plan accordingly.

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    Ed Beshara

    Immigration Attorney
    Answered on

    The questions you ask are excellent and fundamental. The best advice I can give you at this stage is to seek the advice of an experienced EB-5 immigration attorney to provide a first step analysis of compliant and marketable infrastructures for your EB-5 project. Once the analysis is reviewed and discussed, then you will have the confidence to move forward with the full representation of all the team members, including the groups who will source the investors.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    There is no specific time frame. Your project should be EB-5 compliant and you will need to market it by connecting with potential brokers, dealers, etc.

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    John J Downey

    Immigration Attorney
    Answered on

    The speed of raising funds varies due to many factors. These include your contacts with foreign investors, the desirability of the project, etc. Regional centers will charge you administrative fees that will include their evaluation of your project as well as monitoring the process over the two year conditional residency period. They may be of help in finding investors and many times investors prefer regional centers because of their ability to use indirect job counts for your project. Regional center projects are supposed to have priority by USCIS for adjudication, but I really have not seen too much difference in the timeline between the two.

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    Michael A Harris

    Immigration Attorney
    Answered on

    There may not be a difference in direct and regional center projects. It really depends on your marketing, project value and resources to find investors. You could also seek to form your own regional center if you wish, and then working with qualified broker dealers or foreign agencies to find your investors.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Lawyer answer time: It depends! Before you go the EB-5 market, you need to have a project that is likely to comply with all the EB-5 rules and regulations (or go through the process of obtaining pre-approval, which itself can take over a year of preparation and USCIS processing), and also have a project that is marketable to investors. There is no bank of investors on standby, but having the right team can get you in touch with qualified groups of investors or their representatives. You may need to host meetings for potential investors, attend EB-5 trade shows, and develop marketing materials to help you. EB-5 is indeed popular, but you need to put in the time and money to have the right people involved and to help you achieve your goals.

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