What are the benefits of investing in EB-5 besides the visa?

Returns on investment vary. We refer our clients to investment advisors for such advice, but it is very good you are asking these questions! Financial due diligence is just as important as immigration due diligence.

The benefits of investing in the EB-5 are based on two principles. On the one hand, the first benefit is that an applicant and his immediate family members will receive permanent resident cards, which they may eventually used to naturalize. On the other hand, the second benefit is that the U.S. community where the EB-5 funds are invested will experience economic growth/development. Last but the least, while the investment is at risk, it is common that the invested fund may be returned with modest gain in terms of interest.

The primary benefit of the EB-5 process is to obtain permanent residence in the United States for the investor and immediate family (spouse and unmarried children under 21 at time of filing). Most regional center projects offer a small return on investment, but it is not guaranteed as the investment must be at risk, as in any commercial enterprise, to qualify for EB-5 program benefits. This process also allows you to self-petition for permanent residence as opposed to many types of work visas requiring an employer to sponsor.

Frankly, there are no benefits in investing in an EB-5 project other than obtaining one's lawful permanent residency or so-called "green card" status on a conditional basis. One would not normally invest in an EB-5 project given the relatively low return. Whether or not the money that is invested is returned depends upon the particular project. As long as you have made a sound investment decision and you have invested in a good project with a reputable developer, you have a high likelihood of having your original capital returned with a very small amount of interest.

A return on the investment is allowed. The specifics are controlled by the agreements signed by the investor and/or the regional center, project developer.

As with any investment, benefits could be great or poor. Indeed, one can receive interest/gains on an investment into a project when funds are returned. There is a risk, however, as with any investment, that the entire investment may be lost.

Perhaps a small return on investment, but usually, the only benefit to the investor in doing EB-5 is the green card.

I would not look at EB-5 as an investment vehicle. At best you can expect capital preservation. You have to look at this as a green card investment because while some projects offer a small return, the key is to get a green card and then hopefully if all goes well, all or most of your capital will be returned after the I-829 is approved.

EB-5 investment is not designed to provide any guaranteed return as the law requires that the investment be at risk. The primary benefit of EB-5 investment is the immigration benefit (green card) to the investor and his/her family. Another benefit of EB-5 is that it is a self-petitioning process, which means that you do not have to rely on someone else, such as an employer, to sponsor you for the immigration benefit.

If you choose your investment carefully, you may well have a decent return. Many EB-5 investments are structured as "loan to equity," which means you do not have any ownership interest in the underlying project. Other projects provide for some ownership aspect or equity. Whatever project you choose, you will need to consult with U.S. securities counsel to review documents and perform due diligence, sometimes in conjunction with a consultant that does this sort of thing.