Can EB-5 Investors Get Their Money Back?
The EB-5 Immigrant Investor Program is a way for foreign visa-seeking applicants to obtain permanent U.S. residence by investing $500,000 into an approved EB-5 project. The United States Citizenship and Immigration Services (USCIS) requires that the investment must either create or save a minimum of 10 full-time jobs for U.S. workers in order for the foreign applicant, the applicant’s spouse and their unmarried children under the age of 21 to receive permanent U.S. residence however if the project fails, the applicant may lose the opportunity to receive an EB-5 visa and may also lose their investment.
The questions remains for most interested foreigners – will I be able to get my money back? The answer varies depending on the EB-5 project that was selected. There are over 100 different approved EB-5 projects in the United States and they all are developed quite differently, with different investment options.
Foremost, every EB-5 investment is “at risk”. Any project offering otherwise will render the project’s EB-5 application invalid. If an already approved EB-5 program is stating that the project is in any way guaranteed, the USCIS can very well terminate the program.
Even if project is at risk, investors can protect themselves by fully examining the different EB-5 projects, their development plans and their history. By simply researching an EB-5 project, the investor will be able to assess what they are getting themselves into. There are also EB-5 consulting firms that investigate the EB-5 programs and help to advise the foreign applicant with detailed reports and even actual site visits.
The more established EB-5 programs offer a rate of return. The investment is given to the project as a loan and the investor will eventually be reimbursed a percentage or even the whole amount of the funds they invested; it all depends on the EB-5 project.
Many EB-5 programs also use an Escrow bank account. The project deposits the investment into the account and the funds are only transferred after the USCIS approves the investor’s immigration application. If for whatever reason the investor’s application is denied, the investor’s funds are returned by the Escrow bank.
Research of the EB-5 program is a necessity. Analyzing an EB-5 project’s developmental plans and exit strategy is the best way to fully understand the risk of the project. A lot of EB-5 programs have a very aggressive sales force so fully relying on the program to give information can leave the investor in an unfavorable position.
More details and information on the EB-5 visa program is available at http://www.eb5exclusive.com where all of the latest news and resources on the EB-5 can be found.