Categories: EB-5 Due DiligenceEB-5 Program

Types Of EB-5 Projects

To qualify for the EB-5 Immigrant Investor Program, an applicant must invest a significant amount of capital in EB-5 projects. Due to the possible high amount of risk involved, applicants should take considerable time to research the various types of projects available to them.

These EB-5 projects must be built after November 29th, 1990, create lawful, for-profit commercial enterprises, carry a certain amount of risk, and create a minimum of 10 full-time jobs for qualified U.S. workers. Older enterprises may qualify under certain conditions.

EB-5 projects must adhere to all of the criteria laid out by the USCIS. Not following these rules will delay your application or get it denied. Follow the USCIS criteria and get closer to permanent U.S. residency.

EB-5 applicants may invest in a USCIS designated regional center as well and the majority of foreign investors choose this option. Many regional centers appeal to foreign investors because they offer projects in TEAs where the EB-5 applicant only has to invest $500,000 rather than $1 million.

Types of EB-5 projects:

Hotels and Resorts
Condominiums and Apartment Buildings
Retail
Convention Centers
Sports Stadiums
Casinos
Entertainment Venues
Office Buildings
Medical technologies
Manufacturing
Electric Vehicles
Restaurants
Agricultural businesses

EB-5 investors choosing a regional center for their project should do their due diligence and research the particular regional center and industry they’re looking to invest funds into. Here are a few questions all EB-5 investors should try to answer while conducting their research:

Is this regional center’s project in a targeted unemployment area, meaning a high-unemployment area or rural area? Does it qualify for the $500,000 investment?
Have you created an economic report that will showcase how many jobs this project is projected to create? Is there a buffer so that the project doesn’t fall short of creating at minimum 10 full-time qualified jobs?
Is the regional center you’re interested in reputable? Are the leading members of the project experienced, knowledgeable, and trustworthy? What are their credentials? Have you corresponded with people who have previously worked with them? Have they done similar projects in the recent path and developed them completely?
How do they screen potential EB-5 investors?
Do the project developers make unrealistic promises?
Is their process of transferring funds one you’re comfortable with?
Have you read through and considered their business plan? Have you spoken to an economist or immigration lawyer and discussed all the potential risks associated with a particular project?
What is the projected timeline for project completion and the projected return on the investment?
What are all the projects sources of funding?
Are you the first investor or do the project developers already have other EB-5 investors committed to the project?
Is this an unusual project for this particular regional center or have they done numerous similar projects in the recent past. Does this regional center have a great record of continually developing projects or has there been a multi-year lull in development? What are the reasons for long breaks between projects?

Doing this extensive research on EB-5 projects will pay off later when the USCIS approves your project. What’s more, by doing this research, you understand all the associated risks involved in your particular project and can make smarter decisions about planning. And your then by the two year mark, your project will have better odds of passing all the criteria laid out by the USCIS, thus getting you closer to attaining a green card.