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What are the long-term results of an EB-5 investment?

Dear Sir, If I invest in a project with one company the $500,000 minimum needed for an EB-5 investment visa, what will happen to my money? 1. How long it will keep stay with the company? 2. Does it return to me? 3. Do I invest in the project or do I invest in the company? 4. If the stock of this company goes down and the project which I invest in grows, what will happen to my investment? 5. What is the minimum time for investment?

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    The return of your investment cannot be guaranteed. Under EB-5 regulations, the investment to be "at risk." If you are investing through a regional center, the terms in the agreement will dictate the appropriate exit of your funds. The funds should remain in the project at least until the approval of your I-829 petition.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    The questions you ask are project specific. Your investment is precisely that, the idea is that you will eventually have a successful project that in turn will give you a return. Most RCs will require a 5 year commitment, keep in mind that if the project fails your investment will fail as well and you may lose part or all of the money.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    The money you are investing must be used in the business (in the new commercial enterprise) for job creating purposes. The funds will be spent in accordance with the business plan. You cannot park money in a U.S. company and then receive a guaranteed return of the money at a certain time. That is not an investment for EB-5 purposes. Once you obtained your permanent green card (two-year condition removed), you are free to do what you wish with your interest in the business.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    The structure of the investment varies depending on the agreement you have when you invest your money in terms of whether the money is kept in escrow until I-526 approval, when you can divest your money, etc. As far as the USCIS is concerned, the money must be "at risk" so there can''t be any guarantees of return of full investment, etc., but you should discuss all the risks of investment and percentage of return on investment prior to making the commitment of funds.

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    Rohit Kapuria

    Immigration Attorney
    Answered on

    1) The loan term usually lasts at least 5 years (could be longer depending on how long it will take to remove conditions on your conditional green card). 2) If there are funds left to repay your loan (e.g. by liquidating the business, spinning it off, etc.) then you could get your funds back. There can never be a guarantee of the return of funds. Of course, you should always do your due diligence to ensure this is a worthwhile project and a reputable regional center/developer. 3) You would invest your funds in a new commercial enterprise which in turn will either loan it to a borrower (usually a developer that is working on the project) or else it will get disbursed as an equity investment. 4) Unclear what your question is here. 5) See answer 1.

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    Ed Beshara

    Immigration Attorney
    Answered on

    Under the EB-5 PROGRAM, you will have to personally invest $500,000, if it is in a TEA, either in a direct EB-5 PROJECT which may be your own business or in EB-5 regional center project. The personal funds must be made at risk with no guarantee or redemption of any of the personal principal amount to you. The investment should be left in the U.S. operation to show that it is causing job creation and these funds should be used there at least until you obtain your unconditional permanent residency status.

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    Kripa Upadhyay

    Immigration Attorney
    Answered on

    By investing the $500,000 through a regional center, you are essentially putting the money at risk, as required by law. Once you have invested the funds, you and your eligible dependents will receive Conditional Lawful Permanent Residence ("Green card) for a period of two years. The regional center has these two years to show that your investment had led to the creation of 10 jobs (either direct or indirect employment) IF the regional center is able to show this, you and your family will be able to have the conditions removed and be given permanent "Green Card" i.e. valid for 10 years. If the regional center however is not able to show the creation of jobs, or if the project fails, you will loose the "Green Card" and possibly the money as well. Most regional centers will hold on your investment even after you have had the conditions removed i.e. you cannot get the money back the day or week after your conditions are removed. The time that the investment is locked with the regional center will differ from one center to the other, but it is not uncommon for the money to be locked for as long as 5 years from the date of investment. You need to speak with your attorney/regional center representative to get a clear understanding of the rate of return they are promising and the amount of time your investment will be locked in for.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    This is totally dependent on the regional center or business venture you select. Most Regional Center returns are quite low: 1% to 4% is typical.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Good questions! In the regional center context, the investment will be in a company that would make loans or equity investments in the job creating entity (which allows for you, the investor, to count the jobs for your requirements). The investment timeline usually lasts 5 years, during which time you will often receive a 3-6% return. The principal amount cannot be guaranteed to be returned to you (that is, the investment must be "at risk" as per the regulations). These companies are often not publicly traded, so stock prices will not usually be an issue, but most investment entities have plans in place if the project does not meet expectations. I hope this answers your questions and we welcome you to contact us directly .

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