EB-5 CAPITAL REPAYMENT’S REQUIREMENTS AND TERM

Through EB-5, a foreign investor must note that his investment capital is placed at risk. This article is about the requirements and time of EB-5 return for references. Thus, prior to join EB-5 investment, the investors should take a care consideration.

Risks in EB-5 return

Investors might be promised of investment capital refund after 05 years. However, this cannot be guaranteed at 100% since there are various risks such as uncompleted projects, business losses. Thus, the ability of refund also depends on the scale, progress and development of the business project. 

When deciding to invest in any programs (even EB-5), investors must accept investment risk and no guaranteed investment returns. The fact that a business is designated as a regional center by USCIS does not mean that USCIS, the SEC, or any other government agency has approved the investments offered by the business, or has otherwise expressed a view on the quality of the investment.

The SEC and USCIS are aware of attempts to misuse the EB-5 program as a means to carry out fraudulent securities offerings. In a recent case, the USA Now regional center, falsely promised investors a 5% return on their investment and an opportunity to obtain an EB-5 visa. The promoters allegedly started soliciting investors before USCIS had designated the business as a regional center. The SEC alleged that while the defendants told investors their money would be held in escrow until USCIS approved the business as eligible for EB-5, the defendants misused investor funds for personal use. According to the SEC’s complaint, the investors did not obtain even conditional visas as a result of their investments through the USA Now regional center.

Read more: Tips For EB5 Investment

EB-5 Capital Repayment’s Requirements and Term

Each project owner has a different exit strategy approach of investment capital return such as: profit from business operations, refinance, calling for outside investment, mortgage or selling a project.

To receive a full return, it is required:

  • Projects located within a regional center.
  • Projects being implemented and business activities are taking place.
  • Business performance of the new commercial enterprise.
  • Create 10 full-time employments for qualifying employees.
  • Commitment to return investment capital between the project owner and investors.

After at least 05 years, investors will get a return when the new commercial enterprise meets the above requirements. If your investment through EB-5 turns out to be in a fraudulent securities offering, you may lose both your money and your path to lawful permanent residency in the United States. Carefully vet any EB-5 offering before investing your money and your hope of becoming a lawful permanent resident of the U.S.

In brief, there is no guaranteed investment returns or no investment risk, regarding to EB-5 investment.

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