Do I have to work with a regional center to raise EB-5 funds for my business? - EB5Investors.com

Do I have to work with a regional center to raise EB-5 funds for my business?

I want to raise EB-5 funds for my business. What role does an EB-5 broker-dealer play in the fundraising process? Can I enlist the services of a broker-dealer to raise funds for an offering without a regional center participating in the process?

Answers

Daniel A Zeft

Daniel A Zeft

Immigration Attorneys
Answered on

You need a consultation appointment with an immigration attorney who is experienced with EB-5 matters and who can explain the EB-5 process and options for raising capital from EB-5 funds.

A Olusanjo Omoniyi

A Olusanjo Omoniyi

Immigration Attorneys
Answered on

No, you do not have to work with a regional center, but it is highly favorable if you can. However, in order to successfully petition for a business that is EB-5 financed, you will need to prepare a very good business plan. In addition, you will need to demonstrate that you will abide by EB-5 requirements. Advisably, contact an EB-5 attorney and allied professionals to put your plan together before proceeding.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

Immigration Attorneys
Answered on

A regional center is critical to the process of indirect job creation. The direct program has attracted only about 5% of EB-5 investors, so if you want to be successful, you might want to concentrate on the regional center program and therefore need to have a regional center involved.

BoBi Ahn

BoBi Ahn

Immigration Attorneys
Answered on

No, you do not have to work with a regional center to raise EB-5 funds/investors for your business. You can structure it as a direct investment if you have enough bandwith to create the requisite minimum 10 jobs per investor.

Barbara Suri

Barbara Suri

Immigration Attorneys
Answered on

Most regional centers have their very own projects for which they seek funding. It is sometimes possible to join your project as part of their project line.

Hassan Elkhalil

Hassan Elkhalil

Immigration Attorneys
Answered on

That depends on the business, the number of investors, the amount of the investment and the business plan of the business. You can seek the help of brokers to help you raise the funds but each investor must still meet certain requirements, as per the EB-5.

Lynne Feldman

Lynne Feldman

Immigration Attorneys
Answered on

Yes, you may do a direct project EB-5 without involving a regional center at all. The EB-5 broker is your personal choice.

Charles Foster

Charles Foster

Immigration Attorneys
Answered on

It&#39s always advisable when you&#39re raising any significant EB-5 funds to work, if at all possible, through a broker-dealer in order to comply with U.S. securities laws. Yes, you may enlist the services of a broker-dealer without necessarily utilizing a regional center. The advantages of a regional center, primarily, will be in marketing and most importantly, in order to create a count in direct and induced jobs.

Mark AM Catam, Esq

Mark AM Catam, Esq

Immigration Attorneys
Answered on

Yes, it is possible. You dont necessarily need a regional center to raise funds. The project would be a direct EB-5.

Marko Issever

Marko Issever

EB-5 Broker Dealers
Answered on

There are two methods for the EB-5 fundraising. One is the direct investment route and the other is the regional center pooled investment route. If you plan to raise funds from a pool of investors, you will most likely need to go through a regional center. The job-creation requirements are also more onerous in the direct investment route. Only direct jobs are counted. In the regional center program, the investor fulfills his/her job-creation requirement through projections of jobs created indirectly as well. The broker-dealer will make sure that you will comply with all the rules and regulations of EB-5 fundraising. At the same time, they can coordinate the investor sourcing aspect. The role of the broker-dealer and the regional center are complementary. I suppose you could work solely with a broker-dealer if you decide to go through the direct investment route.

Blake Harrison

Blake Harrison

Immigration Attorneys
Answered on

You do not have to work with a regional center to use EB-5 capital. However, under a direct investment you are not able to count indirect jobs such as construction workers toward the employment creation requirement. You will want to work with a team of EB-5 professionals to assist with this complex area of law.

Salvatore Picataggio

Salvatore Picataggio

Immigration Attorneys
Answered on

Not necessarily, but if you cannot cover the number of investors with direct jobs, then a regional center can allow you to calculate indirect employment creation.

DISCLAIMER: the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal, immigration, and financial experts prior to participating in the EB-5 program. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public: do not include confidential information in your question.