About the Investment

What type of investment structure does your Regional Center use?

Our Regional Center relies on the limited partnership investment model that has been used successfully in the EB-5 program for many years.  With this model, the limited partnership is the new commercial enterprise receiving the capital investment from the immigrant investors.  Upon the approval of the I-526 Petitions submitted by the immigrant investors, the immigrant investors become limited partners in the limited partnership and their investment proceeds flow from the escrow account to their individual capital accounts with the limited partnership.

What is a limited partnership?

A limited partnership is a business entity managed by one or more general partners on behalf of the limited partners.  The general partner assumes the debts and obligations of the limited partnership.  Limited partners are only liable to the extent of their investment and are not liable for debts and obligations of the limited partnership.  Limited partners participate in numerous aspects of the limited partnership’s decision making and have certain economic rights.  For purposes of the EB-5 program, the limited partnership serves as the new commercial enterprise which receives the immigrant investors capital investment.

Must immigrant investors participate in the management of the limited partnership?

Yes. The EB-5 program requires that immigrant investors actively engage in the management of the investment by participating in the management of the new commercial enterprise either through day-to-day managerial control or through policy formulation.  The rules and regulations of the EB-5 program recognize that a limited partner as defined in the Revised Uniform Limited Partnership Act satisfies this requirement.  The limited partnership structure implemented by our Regional Center satisfies this requirement by requiring the participation of limited partners in the formation of policy activities for the limited partnership.  Therefore, immigrant investors will have the freedom to engage in other business endeavors instead of the day-to-day management of the limited partnership.

Does your Regional Center rely on debt or equity financings?

Our Regional Center relies primarily on debt financings.  Our investment documentation clearly identify the terms and conditions of the investment.

How is my investment protected?

Our Regional Center management and staff have the necessary experience to identify qualified EB-5 opportunities and document the transaction.  We conduct extensive legal, financial and operational due diligence to determine the suitability of each borrower.  We also have the necessary EB-5 experience to ensure our EB-5 projects will satisfy the EB-5 program rules and regulations.  Our EB-5 projects also provide collateral and other security interests to the limited partnership.  Throughout the term of the loan, we will work with and monitor the borrower to ensure compliance with the job creation requirements and the financial obligations.  Limited partners receive regular reports on these matters and limited partners are free to request any additional information and documentation from the general partner at any time. We also rely on escrow agreements to protect the interests of immigrant investors while the I-526 petition is pending.

What are the risks associated with an EB-5 investment?

EB-5 program regulations require that the investment be at risk and guarantees, buy-backs and redemptions are prohibited.  All private investments are subject to risk including the possibility that the investment may fail due to general economic conditions.  However, EB-5 investments have the additional risks associated with of the job creation requirements and the rejection by USCIS or the U.S. Consulate of the immigration status.  Risk factors vary in each investment and our investment documentation will address the specific risks involved.  However, as stated above, we use our best efforts to minimize the amount of risk through our due diligence, EB-5 project selection process, escrow agreements and by requiring collateral and other security interests from borrowers.

What happens if my I-526 is denied?

The full amount of your investment will be returned to the account from which it originated.  To protect immigrant investors this obligation is set forth in our investment documents and all investment proceeds are deposited and maintained in an escrow account with an independent financial institution, including any fees and expenses until I-526 Petitions are adjudicated. Our escrow agreement is reviewed and approved by USCIS and it specifically instructs the independent financial institution acting as the escrow agent to return the full amount of the investment to the account of origin.

How does a potential immigrant investor participate in your Regional Center?

The first step is to contact our office by phone or email to discuss your interest in the EB-5 program.  Also, you can review and prepare our immigrant investor suitability and background questionnaires and submit them via email or fax.  With this information we will be able to determine your suitability for the EB-5 program and our EB-5 projects in particular.  We will answer all your questions and provide you with information regarding our Regional Center and our EB-5 projects.

What is an accredited investor?

The term accredited investor is defined by U.S. securities laws and it describes the types of investors permitted to invest in “exempt” securities. U.S. securities laws require companies that offer or sell their securities to register the securities with the U.S. Securities and Exchange Commission or rely on an exemption from the registration requirements.  The Securities Act of 1933 provides several exemptions some of which require that the securities be sold to accredited investors.  Our EB-5 projects rely on these exemptions.

For purposes of our EB-5 projects, for an immigrant investor to qualify as an accredited investor they must be a natural person and have an individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the investment, excluding the value of the primary residence of such person.  Alternatively, an accredited investor can be a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and there must be a reasonable expectation of the same income level in the year the investment is made.