I want to apply for an EB-5 visa through a Regional Center. My question is, if that center will get me all my $500,000 money back again after 3 years or what?
The EB-5 regulations require that the EB-5 funds are "at risk" of loss and as such regional centers are prohibited from offering guaranteed returns to investors. Also, please note that most investment cycles span at least 5 years.
You will not be able to get your principal amount within 3 years since you must maintain your investment until your Removal of condition application (I-829) has been adjudicated, which could only be filed after 2 year and takes about a year for adjudication after filing. There is only one regional center that has actually returned the principal investment after the investor got their I-829 approved CMB Regional Center and most regional center that has a similar loan based program require 6 year investment before the loan matures and the money is due to be paid back.
Thank you for your question. The hope is that the regional center will not go belly up and you can get your money back after the receipt of your 10-year card (it''s probably going to be closer to 4-5 year before you can actually get your money back). But the risk is always there and it is precisely for this risk that you''re getting permanent resident status in the U.S. In light of the above, it is really important to pick a reliable regional center, with a proven track record of success - to minimize that risk.
It is important that you conduct proper due diligence when you select a Regional Center. Most have an Exit strategy in place. However, there is always a risk associated with an EB-5 investment.
Typically, no. The EB-5 investment is returned by the investment project (the "job-creating entity").
EB-5 investments are supposed to be at risk investment. There is no guarantee the money will be returned to you. However, different regional centers have different exit strategies. If the project is going well, it is possible the money could be returned to you at a later time (usually more than 3 years though).
There is always a risk element in every investment. You need to read the PPM very carefully and use your own knowledge and expertise as to the ability of the project to give your money back.
Choosing a good regional center is a critically important part of the process. No regional center can guarantee your money back (that expressly violates the requirements of the EB-5 program). Therefore, you need to carefully choose a regional center in which you have confidence both in terms of the management team, project, and financial viability. Feel free to contact me for a detailed list of questions you should ask any regional center you are considering investing in to do your proper due diligence before making an investment.
The Regional Centers cannot guarantee that they will return your initial investment as that would be in violation of the regulations. Many Regional Centers have plans to buy out, if funds available, after 5 years.
