Regional Centers

  • An EB-5 Regional Center is an entity—either public or private—that drives economic growth and job creation. It plays a crucial role in the EB-5 program by facilitating foreign investment and subsequently job creation. Designated by the United States Citizenship and Immigration Services (USCIS), a Regional Center serves as an intermediary between investors and EB-5 projects.

  • Opting for an investment via a Regional Center comes with distinct advantages. Chief among these is job creation, where investments through a Regional Center allow USCIS to consider direct, indirect, and induced jobs. Unlike investments in New Commercial Enterprises (NCEs), which count only direct jobs, Regional Center investments offer a comprehensive job creation approach. Moreover, investors through a Regional Center typically maintain limited involvement in day-to-day operations, presenting an attractive option for those seeking EB-5 Green Cards without active business management.

  • The EB-5 visa program is open to individuals from all countries, spanning Asia, Europe, Africa, North America, South America, and Australia. Regardless of your origin, the EB-5 opportunity welcomes citizens from across the globe to pursue their dreams of U.S. residency.

  • A Regional Center under the EB-5 Investor Program is an economic entity, either public or private, deeply engaged in fostering regional development. By generating jobs, enhancing regional productivity, and boosting domestic capital investment, Regional Centers play a pivotal role. USCIS designation allows Regional Centers to act as service agents, facilitating EB-5 investments and enabling projects to meet visa requirements efficiently.

  • Upon the successful development and execution of the project an EB-5 investor invested in through an EB-5 USA regional center, investors receive their funds back. The culmination of the project ensures the return of their investment, reflecting the cyclical nature of the EB-5 journey.

  • Indeed, the EB-5 visa paves the way for U.S. citizenship. Investors can apply for citizenship after holding "unconditional residency" status (the 10-year Green Card) for five years and satisfying other naturalization requirements. Accumulating seven years of U.S. residency is necessary before applying for citizenship.

  • The application processing fee for Form I-829, integral to the EB-5 Visa process, amounts to $3,750. This petition marks the culmination of the investor's journey to a permanent green card, demonstrating fulfillment of USCIS requirements.

  • Repayment of an EB-5 investor's capital occurs when the developer successfully executes the project into which the investor initially invested through an EB-5 USA regional center. Completion and success yield the return of the investor's funds.

  • Impact and Benefits of Regional Centers: Regional Centers play a significant role in promoting economic growth within specific geographical regions of the United States. They facilitate job creation and capital investment by connecting investors with qualified projects. Regional Centers offer several benefits, including:

    1.) No Day-to-Day Management Required: Investors in Regional Center projects are not required to actively manage the day-to-day operations of the business. This allows investors to focus on their immigration goals without getting involved in the business's operations.

    2.) Indirect Employment Creation: Regional Centers allow for the inclusion of indirect and induced jobs in the job creation requirement. This means that jobs created through the project's influence on the local economy can be counted, which can make it easier to meet the job creation target.

    3.) Flexibility in Residence: Regional Center investors are not restricted to living near the project location. They can choose to live and work anywhere in the United States.

    4.) Priority Processing: Regional Center petitions often receive priority processing, potentially leading to faster approval times compared to direct investment petitions.

  • 1.) Job Creation Methodology: In a direct investment, only direct jobs created by the new commercial enterprise are counted towards the job creation requirement. In a Regional Center investment, both direct and indirect jobs created by the project can be counted.

    2.) Control over the Business: Direct investors have a more hands-on role and control over the business they invest in. Regional Center investors typically have limited involvement in the day-to-day operations of the project.

    3.) Return on Investment (ROI): Direct investments may potentially offer higher rates of return, but they also come with higher risks as investors have more control and responsibility over the business's success.

    4.) Capital Requirement: The minimum investment amount for both direct and indirect investment is $800,000 USD in TEA (Targeted employment Area) and $1.05 Million Non-TEA.

Investment Costs

  • A minimum EB-5 investment of $800,000 USD in a Targeted Employment Area (TEA) is required, either through a USA Regional Center project or directly into a new business.

  • The source of funds for an EB-5 visa investment comprises several elements: the EB-5 investment amount, regional center administrative costs (if applicable), petition filing fees, application fees, and attorney fees. The specific cost varies based on the investment type and the chosen attorney's experience and reputation.

  • Filing Form I-526, essential for obtaining a conditional green card from USCIS, incurs a filing fee of $11,000. For applicants applying from outside the USA through Counselor processing, an additional $475 is applied.

  • EB-5 investors are subject to taxation. Distributions from Regional Center projects or new commercial enterprises incur withholding tax until conditional permanent residency is attained. Post-residency, worldwide income is subject to federal income tax, inclusive of both domestic and international sources of revenue.

  • Yes, an EB-5 investor can leverage loans to make an EB-5 investment more accessible. However, stringent USCIS requirements must be met, and personal guarantees for repayment are necessary.

  • The EB-5 program can yield success when meeting two fundamental requirements: "at risk" investment and creation of 10 new full-time jobs in the U.S. economy

  • Absolutely, the EB-5 program can indeed work for you, provided you fulfill its core requirements. The success of EB-5 hinges on meeting two fundamental criteria:

    "At Risk" Investment: Your investment must genuinely be at risk, meaning you are committing capital with the possibility of gain or loss. This is a fundamental principle of the program.

    Job Creation: Your investment must lead to the creation of a minimum of 10 new full-time jobs within the U.S. economy. These jobs can be direct, indirect, or induced as per the program's job creation methodology.

    Meeting these criteria is crucial to realizing the benefits of the EB-5 program and obtaining your U.S. Green Card.

  • The average rate of return on EB-5 investments can vary based on several factors, including the type of project, its risk profile, and the economic conditions. However, it's important to note that the primary goal of the EB-5 program is to secure permanent residency rather than generate high returns. While the potential for returns exists, investors should primarily focus on meeting the program's requirements for immigration benefits.

    As with any investment, it's recommended to thoroughly research and analyze the potential risks and benefits before making a decision. Consulting with financial and legal professionals experienced in the EB-5 program can help you make an informed choice.

  • While opening a US bank account is not a strict requirement for participating in the EB-5 program, it is often preferred and beneficial. Having a US bank account allows investors to efficiently manage the flow of funds related to their investment. Once the funds are in the US bank account, they can be transferred to the EB-5 escrow account, which is a secure way to hold the investment capital until specific conditions are met.

Source of Funds

  • Proving the source of funds is a crucial aspect of the EB-5 process to demonstrate that the invested funds were obtained through lawful means. The documentation should provide a clear and verifiable trail of how the funds were earned, acquired, and eventually invested. Here are the types of funds and the associated documentation that can serve as proof of source of funds:

    1.) Income:

    • Bank statements showing salary payments from the employer.

    • Capital source statement explaining how the investment funds were derived from wages.

    • Capital source statement from the spouse if their earnings supported living expenses while the investor saved.

    • Documentation supporting salary payments, such as employment contracts and income certificates from the employer.

    2.) Sales of Real Estate:

    • Contracts of purchase and sale.

    • Bank statements reflecting the deposit of selling profits.

    • Property ownership certificates and property tax certificates.

    • Capital source statement detailing how investment funds were obtained from the sale of real estate.

    • Information about the source of cash used for the property acquisition.

    3.) Stock Market Proceeds:

    • Bank statements showing the deposit of sale proceeds.

    • Purchase and sale contracts, share transfer agreements.

    • Capital source statement explaining how the investor purchased stock and received selling proceeds.

    • Employment and payment documents, property sale records, and bank statements as evidence of lawful sources of purchasing money.

    4.) Loans:

    • Loan terms and collateral details in the capital source statement.

    • Copy of the loan contract for loans from private lenders.

    • Capital source statement from the lender explaining how the funds were obtained.

    • Bank statements matching loan deposit amounts in the capital source statement.

    • Deeds, certificates of ownership, and asset appraisals for collateral.

    5.) Gifts:

    • Capital source statement indicating that investment funds were gifted.

    • Information about the person who gifted the funds and the method of gifting.

    • Letter from the gift provider certifying the amount and stating no repayment is required.

    • Bank statements confirming the deposit of gifted funds.

    5.) Inheritance:

    • Proof of relationship to the deceased, like a death certificate and will.

    • Capital source declaration from the deceased.

    • Pay stubs or tax records indicating lawful receipt of assets by the deceased.

    • Bank statements showing transfers from the source account to the heir’s account.

    • Affidavits or letters from trustworthy sources if documentary evidence is lacking.

  • Yes, an EB-5 investor can use a bank loan to apply for an EB-5 visa, but specific conditions must be met. The loan must be secured by property owned by the investor, with its value equal to or exceeding the loan amount. The investor must personally guarantee the loan's repayment and serve as the primary borrower. No ownership interest or assets of the EB-5 investment entity can be pledged as collateral for the loan.

  • An EB-5 investor can obtain a loan to make their investment more affordable. Loan proceeds can be used as a source of capital for EB-5 investment, provided that the investor is the primary borrower, personally liable for repayment, and the loan is secured by the investor’s personal assets.

    In conclusion, the proof of source of funds is a critical step in the EB-5 process. Proper documentation is essential to demonstrate the legitimacy of the funds used for the investment, whether they are from income, real estate sales, stock market proceeds, loans, gifts, or inheritance. Consulting with professionals familiar with the EB-5 program can ensure that all necessary documentation is prepared and presented accurately.