Before Applying For An EB-5 Visa: 3 Extra Factors To Consider

Before applying for an EB-5 visa here are 3 extra factors prospective investors should consider:

1. Amount of Risk

While an EB-5 investment must be an “at-risk” investment, the amount of risk involved in a particular project varies widely. Unlike EB-5 direct investment projects where investors are actively engaged in the day-to-day processes of their investment project, investors in regional center projects put their faith in a team of managers to direct and manage the investment on their behalf.

An EB-5 investor’s primary goals are to obtain a U.S. green card and have their capital returned. Some investors select riskier projects with higher returns on their investment, but most EB-5 investors are willing to take a lower ROI in return for a better chance at obtaining their green card. In order to do so, an investor must look at the regional center and project they selected under a microscope. How much experience does the regional center and developer have? How many I-526 and I-829 petition approvals has the regional center received? How long have they been around?

Between March 2020 and May 2020, the number of regional centers dropped from 772 to 728. Under the new targeted employment area rules, many projects no longer qualify for targeted employment area designation and that may be a contributing factor as to why the number of regional centers on USCIS page have continued to decrease. It’s important for prospective investors to conduct thorough due diligence to determine project viability under these new EB-5 rules.

2. Source of Funds

EB-5 investors may want to develop a strategy for fulfilling their source of funds requirement. They must show that the funds came from lawful sources and that the path of the funds to the U.S was also lawful. Selecting funds that are liquid or easy to document can not only save the investor time and stress, but it may also help their petition processing time if an adjudicator sees a clear and simple source of funds.

3. Additional Fees

Prospective investors should consider the additional costs involved in immigrating through the EB-5 Program.

EB-5 immigration attorney fees for filing petitions can cost several thousand
USCIS filing fees for the I-526 petition, adjustment of status forms, and I-829 petitions
Regional centers administrative fees
Relocation fees
Prospective investors may also want to consult with a tax attorney if they are worried about their tax burden due to living in the U.S. for a majority of the year.

Prospective investors should also consider the benefits of living in the U.S. when thinking about all the fees because they may be able to save money in these two ways: