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What is the minimum development size for an acceptable EB-5 real estate project?

How does USCIS look at a new developer whose very first development project is an EB-5 one? How much experience is required for a developer to raise EB-5 money? What is a minimum development size that a project should be to target EB-5 investment in a TEA?

Answers

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    The minimum development size can be $900,000.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    There is no minimum size and technically it could be for a $900,000 raise. Practically, however, we are seeing a lot more of smaller raises in the region of $10-$20 million.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    USCIS is looking for the likelihood that the project will be successful and create jobs. If that can be done with a first-time developer, great. If that requires a higher percentage of EB-5 funds, that can be OK too. The market for EB-5 investors may be a little different though, looking for experience and a limit on the share of EB-5 in the overall capital stack. This is definitely something worth pursuing with an EB-5 attorney.

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    Phuong Le

    Immigration Attorney
    Answered on

    The biggest issue is credibility and financing. Whether it is big or small, without a credible plan to explain how the project would be financed if it fails to raise EB-5 money, it will almost certainly get denied.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    There is no minimum, but the project must show it will create 10 new jobs within the required time period.

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    Mark AM Catam, Esq

    Immigration Attorney
    Answered on

    There is no statutorily required size of the project to meet EB-5 requirements. It would be case-specific. The same requirements apply regardless of the size of the project. Contact an experienced EB-5 attorney who will assist in structuring the project in order to meet EB-5 requirements.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    The simple answer to all your three questions is that there is no general standard. Thus, being a new developer is not necessarily a stumbling block, just as well as, the experience is not required either in raising money or managing an EB-5 project. Actually, writing a good business plan that details how you meet the requirements of EB-5 such as how you intend to meet job creation and making sure the business plan complies with the Matter of Ho case will help determine whether your EB-5 will be approved. Finally, consult an EB-5 attorney for further details on the new rules of EB-5 which took effect on November 21, 2019 and how you can meet all necessary requirements.