How Safe Is EB-5 Regional Center Program?

Benefits of EB5 Regional Center Program.

Imagine walking onto a car lot showcasing hundreds of used vehicles. The used car salesmen walks up to you and asks you what type of vehicle you are interested in. Having saved $40,000.00, you state that you are looking for a vehicle for that price. The car salesmen take your check, select a random vehicle on the lot, and hands you the key. Would you drive off secure with this investment, without at least a test drive? More than likely, you won’t.

Similar to the scenario above, investing in an EB-5 regional center program is something that one does not jump into without understanding the risks involved. Amongst knowing what the program is, how to invest in the program and the benefits associated, a strong analysis of the risk factors must also be taken into account.

The EB-5 investor program is administered by the United States Citizen and Immigration Services (USCIS). This program allots foreign investors the opportunity to stimulate the U.S. economy through U.S. job creation in exchange for a conditional visa. The capital investment is appropriated at USD 1 million, to start a new commercial enterprise of the investors choosing in approved counties across the U.S. Limited opportunities are also available with a USD 500,000.00 investment in targeted rural areas. Targeted rural areas are designated by the U.S. Office of Management and Budget and cannot be located outside of a town or city with a population of 20,000 or more. Upon successful establishment of a new commercial enterprise through either investment, you have the opportunity to receive a permanent green card from the U.S. government.

Click here to learn more about investing into a regional center. 

Conditional EB5 Green Card.

Now that we understand the basics and the incentive to receive a conditional visa for yourself and your family members, what could possibly be the associated risks? First, going back to the original analogy, investing in an EB-5 regional program is a lot like buying a car. They all look enticing, they have the new car smell, but what are you really purchasing? In total there are over two hundred regional centers of which you can invest. This number continues to rise daily. Add to this issue, the many programs that are continually being added. This can take a considerable amount of time for someone to go through. Although you may not be able to “test drive every car” or in this case look up every regional program, it is important that you understand at a bare minimum:

  • If the regional center is financially stable.
  • Able to raise additional funds.
  • Will help you meet the necessary conditions to obtain your visa.
  • Allots an exit strategy for your investment return.

If this process seems overwhelming to you, we completely understand. Immigrationbiz provides numerous articles and a plethora of information on the EB-5 visa process. Please be sure to check out our additional blog postings with important tidbits about the EB-5 process. For a summary of the types of programs available to obtain your visa or green card, please visit: http://www.immigrationbiz.com/services/.

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