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What are the requirements for EB-5 program developers?

I am interested in a small condo development in the Los Angeles area. Total costs are expected to be around $10 million and this will be my first project on my own. Is there a minimum project cost number required to use the EB-5 program and are first time developers able to use EB-5? Are there any specific requirements for EB-5 developers?

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    EB-5 projects must comply with the rules, regulations and policies pertaining to the EB-5 immigrant investor program. Retaining EB-5 immigration counsel is key to making your project approvable, first timer or having developed hundreds of projects.

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    Echo Meisheng King

    Immigration Attorney
    Answered on

    Congratulations on your first project in the United States! The minimum capital required for the EB-5 project is $1 million dollars ($500,000 if the project is in a TEA). If your condo project is about $10 million, it will definitely qualify for the minimum capital requirement. Any developer can utilize EB-5 funds for his/her project. If you are considering structuring it as a regional center project so you can take advantage of the indirect job creation method, you will need to either apply for your own regional center or affiliate with an existing regional center. There is no specific requirement on developers, but in order to persuade USCIS that the project will be successful, the developer should have some sort of credential, or partner with someone who has successful experience in this field.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    There are no specific separate requirements for developers. Investors will likely not qualify for a lower investment amount of $500,000 and will be required to invest $1 million unless you work with a regional center. Each EB-5 investment must create at least 10 full-time jobs in a direct investment model vs. indirect/induced job creation in a regional center setting. Each EB-5 investor must be able to demonstrate his or her investment comes from a lawful source of funds by working with his or her EB-5 immigration attorney. You should have a team of professionals assisting you and start by consulting an experienced EB-5 immigration attorney.

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    Robert Cornish

    Securities Attorney
    Answered on

    There is not a minimum size, but you have to be sure that the jobs required are being created. This is especially challenging with residential projects and you will need to hire a consultant to assist you in getting the proper data to USCIS. Mixed-use projects tend to work better. In addition, as an industry norm, EB-5 capital raising is most successful when used as mezzanine financing, given that foreign investors do not wish to be alone in funding a deal.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    There are no minimum amounts so $10 million is a good size to start. You need to build a team; you need a regional center and you need an immigration lawyer that can help you get started.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    There is no specific set of requirements for a developer. However, each of your EB-5 investors is required to comply with the EB-5 fundamental requirements. First, for a real estate development like yourself located in Los Angeles, which is presumably an urban area, obviously each investor is expected to invest about $1 million each. Secondly, each investment must produce a minimum of 10 jobs. Lastly but not the least, each investor's money must be from legal source(s). These are just basic requirements; it is advisable that you contact an EB-5 attorney who can help plan and execute this viable project.

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    John J Downey

    Immigration Attorney
    Answered on

    No minimums except the amount of investment must be $1 million or $500,000 as the case may be. The investor(s) will not usually want the whole development project funded by EB-5. They usually want to see the developer's funds at risk also. So a 60/40 or 50/50 ratio would be more attractive to them.

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