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How can a non-accredited EB-5 investor invest through a regional center?

I am very interested in investing through EB-5 to get a green card so my family can move to America in the near future. I contacted a regional center, but they said I need to be an accredited investor to qualify. I do not have this status, but I will have the $500,000 + fees to invest, along with extra money when I sell my house. Do all EB-5 regional centers require accredited investor status? How can I invest without the accredited investor status through a regional center, and be sure it is still a good regional center?

Answers

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Most EB-5 regional centers will accept only accredited investors due to the SEC rules governing offering of securities. A direct EB-5 or other investment might not have the same requirements. You should check with a business attorney and an immigration attorney to see if there are any EB-5 projects that you might qualify for, or see whether or not you might qualify as an accredited investor in the near future.

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    Ed Beshara

    Immigration Attorney
    Answered on

    There are exceptions to being an accredited investor. An experienced EB-5 immigration attorney can advise on the exceptions and how you may qualify. The securities laws allow the exception under certain circumstances.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    Discuss with your attorney, but you may be able to invest under Regulation S as a foreign national if the entire transaction takes place outside of the United States. However, if you are investing all your funds this may not be a suitable investment for you.

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    Robert Lee

    Immigration Attorney
    Answered on

    You need to make the investment overseas. Also, you actually might be considered an accredited investor; it is a relative term.

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    John J Downey

    Immigration Attorney
    Answered on

    The "accredited investor" has to do with the SEC rules. These rules are different depending on whether you are in the United States or the offer is made outside the United States. You should consult with an attorney familiar with SEC regulations. The SEC has recently taken an interest in EB-5 and seem to be judging things on a case by case basis. Obtaining expert advice in the beginning is worthwhile.

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    Robert Cornish

    Securities Attorney
    Answered on

    There may well be EB-5 investments out there that operate under a broader accredited standard under Rule 506, where they are permitted to accept less than 35 non-accredited investors. But here the issuer would, under Rule 502(b), have to provide a disclosure document to the non-accrediteds equivalent to that of a public offering. It is questionable whether an issuer would undertake the cost of doing so. Even if they did, you would have to confirm that they are using skilled securities counsel and at least have some independent auditing done on an annual basis.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    If the regional center requires all investors to be accredited, that is their choice. Accreditation of all investors is not required for some smaller investments. Please consult with EB-5 counsel who works with securities law counsel to assist you.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    EB-5 investment is a purchase of a securities and is regulated by the Security Exchange Commission, which requires that EB-5 investors prove eligibility of having had either $200,000 per year income for at least 3 years or have an asset of $1 million. With increased scrutiny of EB-5 investments and investors by not only the USCIS but also by SEC, most of the reputable regional centers will demand an investor to be accredited.

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    Kenneth C Wright

    Securities Attorney
    Answered on

    It is possible to make an EB-5 investment as a non-accredited investor, but not very common. Many regional centers standardize their processes and take only accredited Investors. Because the non-accredited routes are technical and depend on your personal situation, you should contact a competent securities lawyer to discuss.

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    Kevin S Kim

    Securities Attorney
    Answered on

    It depends on the specific securities offering being used for the EB-5 investment opportunity. If the offering is a Regulation D Rule 506(B) it will permit a maximum of thirty five (35) non-accredited investors. Please contact your regional center and obtain a copy of their private placement memorandum. You will be able to know whether a non-accredited investor can invest through the regional center or not.

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