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Questions & Answers

How can an EB-5 regional center provide different offers to EB-5 investors in the same NCE?

Is it true that EB-5 regional centers have to offer the same percentage of return to each member in a new commercial enterprise? Can a general partner offer a management fee waiver to some members to provide additional interest?

Answers

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    Yes, it can happen. The possibility of ending with different management fees depends on the negotiations of the parties.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    Generally speaking, the offer must be as stated in the private placement memorandum so it is a securities compliance question as the private placement memorandum must be factual. Management fees may be over and above the investment threshold so they may be discretionary.

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    Ed Beshara

    Immigration Attorney
    Answered on

    All investors in the NCE should receive the same interest and rate of return.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    I know of no rule against this.

  • Avatar

    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Each investor files their own application, so something like a management fee or administration fee, which is separate from the required investment, can vary from investor to investor.

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