The Importance to Conduct Due Diligence When Considering EB-5 Visa

In the recent years the number of designated regional centers have significantly increased. Currently, there are approximately 930 regional centers which are authorized by the U.S. Citizenship and Immigration Services as qualifying participants in the EB-5 Visa Program.  This has resulted in increase in quantity and varieties of EB-5 investment opportunities available to prospective investors.

Peter Calabrese EB5 Investment Expert

In the recent years the number of designated regional centers have significantly increased. Currently, there are approximately 930 regional centers which are authorized by the U.S. Citizenship and Immigration Services as qualifying participants in the EB-5 Visa Program.  This has resulted in increase in quantity and varieties of EB-5 investment opportunities available to prospective investors.

The risks inherent in any investment decision are only multiplied in the EB-5 context. Apart from significant financial considerations, prospective investors also need to assess the likelihood of their investments to comply with a complex network of immigration laws, regulations, and policies such that permanent immigration to the United States will become possible.  Considering the multi-faceted factors facing prospective investors, decisions regarding which EB-5 investments are most appropriate are by no means straightforward. 

Prospective investors evaluating regional center-sponsored EB-5 investments should perform extensive due diligence on both the regional center sponsor and the project. In this regard, the parties should always carefully review the full offering package provided by the regional center – following up with any questions – as well as consult with experienced financial/tax professionals and immigration counsel, in order to understand the nature of the investment, the extent to which it complies with EB-5 Program requirements, and the potential consequences/risks in the event the investment is compromised for any reason.

The key facts that need to be known before investing in any project are:
#1 Fundamentals 

It is imperative to know the fundamentals of the EB-5 visa to adequately assess whether an investment opportunity will satisfy program requirements. Determine the role of regional centers and how the EB-5 funds will be released to projects. If the application is denied, when and how will the funds be returned to the investor?

#2 Regional Centers

The investors must determine whether the regional center is authorized by USCIS and active at the time of making investment. The track record of the regional center one is interested in must be reviewed and compared against other centers. The years of experience and the number of successful projects sponsored are good measures to analyze the performance of the regional center.  A successful project would most likely be defined by its ability to achieve full immigration status and repayment of funds to investors.

#3 Projects

Cross check the reputation, track record and experience of the project developer. The Regional Center should be authorized by the government and approved by USCIS. The project must not harm any religious or any other beliefs of the citizens of the country. This can result in non-completion of the project.

 

The EB-5 Immigrant Investor Program is administered by the United States Citizenship and Immigration Services (USCIS). The Program provides qualified foreign investors with the opportunity to earn “conditional” or temporary two-year visas in return for investing $500,000 in businesses located in high unemployment areas that create or retain at least ten permanent full-time jobs for U.S. workers.

About CanAm Enterprises

With three decades of experience promoting immigration-linked investments in the United States and Canada, CanAm Enterprises has a long and established track record. Based on a reputation of credibility and trust, CanAm Enterprises has financed more than 55 project loans and raised  $2.8+ billion in EB-5 investments. CanAm Enterprises exclusively operates several USCIS-designated regional centers that are located in the city of Philadelphia, the Commonwealth of Pennsylvania, the county of Los Angeles, the metropolitan region of New York, Hawaii, Florida, and Texas. For more information, please visit www.canamenterprises.com