Questions and Answers > EB-5 Investments

What is the EB-5 project management fee?

What is the EB-5 project management/administration fee I have heard about with regional centers? Is there such a fee for EB-5 direct investment?

Answers

• Xiaosheng Huang

  Immigration Attorney

  Answered on May 23, 2016

  The management fee for the regional center programs is about $50,000. There is no management fee if you do a direct investment.

• Fredrick W Voigtmann

  Immigration Attorney

  Answered on April 8, 2016

  This is a fee usually required by EB-5 projects to pay for their own expenses, advertising, commissions, etc., because they cannot use your investment capital to pay for these purposes. Many times, the administrative fee helps the regional center or direct EB-5 project defray the costs of marketing the project abroad, obtaining investors, and paying finder's fees to agents. Some direct EB-5 investments may also have such fees, but there is no standard requirement; it is open to negotiation by the parties. Usually, the regional center projects have set administrative fees and those are non-negotiable.

• A Olusanjo Omoniyi

  Immigration Attorney

  Answered on April 8, 2016

  The EB-5 project management fee varies among individual regional centers and it depends on roles and the partnership agreement of each regional center. There are similar fees for EB-5 direct investment, particularly in situations where the project involves employment of experts such as attorneys, business brokers, consultants, planners and management. Advisably, in consultation with your EB-5 attorney, make sure your agreement incorporates some of these management issues.

• Bernard P Wolfsdorf

  Immigration Attorney

  Answered on April 7, 2016

  Most regional centers charge an administrative fee to cover their costs. If you file a direct EB-5, without using a regional center, you may not have to pay it. But carefully calculate the cost of maintaining 10 full time workers and you will understand why 98 percent of applications were filed via the Regional Center Program last year.

• Jinhee Wilde

  Immigration Attorney

  Answered on April 7, 2016

  No, there are no such fees for direct EB-5. The regional center charges the administration fee to recoup their overhead and other costs for finding good projects to offer and making those projects EB-5 compliant.

• Salvatore Picataggio

  Immigration Attorney

  Answered on April 7, 2016

  If you participate in a "managed" direct investment, an administration fee may be required, but if you are investing into your own business, there would not be any extra fee. Regional centers/new commercial enterprises/issuers charge such a fee to pay for the costs of making such an offering, including marketing and professionals involved in establishing the project. Please note that administration fees are not required by USCIS policy or law, but have become a common practice to facilitate the establishment of the projects.

• John J Downey

  Immigration Attorney

  Answered on April 7, 2016

  The management fee may comprise different services provided by the regional center, including filing the yearly report on the money invested, jobs created, etc., and for the use of the regional center auspices. A direct investment may have extra costs also for legal services and monitoring the project and the filing of the appropriate documentation with USCIS.

• Ian E Scott

  Immigration Attorney

  Answered on April 7, 2016

  This administration fee is a fee charged by the regional centers to cover marketing, legal fees, etc. They do not apply to direct investments.

• Abhinav Lohia

  Immigration Attorney

  Answered on April 7, 2016

  All regional centers charge an administrative fee. It ranges from $30,000 to $60,000. With the direct investment it depends. If it is facilitated by a regional center or a third party, they might charge an administrative fee. However, if you invest in your own business, then obviously there is no administrative fee.