Development Funding Through The EB-5 Program

With the economy in a slump and financing for new developments at an all time low, the foreign investor visa is benefiting more than just the individuals and families who want to come live and work in the United States. American developers and construction companies are finding that their usual funding sources have all but dried up, but the EB-5 seems custom designed for just such an economic situation. Instigated by a Congressional mandate as a way to entice foreign capital into the U.S. economy, the EB-5 visa program requires foreign investors to generate and maintain a certain amount of economic stimulation and job creation through their financial investment. With the current national funding shortage, the EB-5 is a win-win proposition for immigrants and American developers alike.

Funding Options

Regional Center Designation: Regional Centers are pre-approved investment centers that work within the parameters and guidelines of the EB-5 program. The upside to obtaining official Regional Center designation is that you become available to and attract a number of foreign investors looking to gain permanent residency status in the U.S. However, the application and approval process for Regional Center designation is both time consuming and expensive- not to mention considerably complex. Once Regional Center status is acquired, the responsibility of maintaining EB-5 compliance standards and documentation can also be an overwhelming burden. Most successful applicants choose to work with an expert EB-5 consultation firm like Exclusive Visas, which can smooth the process and make sure you know what you’re committing to.

Buying In: If you think you’re up for the demands of managing an EB-5 Regional Center but don’t want to go through the application process, you may find that buying an existing Regional Center is the perfect solution.

Project Adoption: You don’t have to operate a Regional Center to get your development project funded by one. You can gain all the benefits of Regional Center affiliation and leave the responsibility of EB-5 compliance and management to someone else by enticing a Regional Center to “adopt” your project instead.

Experienced Eb-5 Consultants in South Florida

The EB-5 visa program was created by the Immigration Act of 1990 and was designed to put immigrant investors on the fast track to citizenship.  Foreign nationals who invested a certain amount of money in America or created a certain number of jobs for native workers were encouraged to apply for permanent residence.   Congress believed that EB-5 investors would help stimulate economic activity in certain parts of the country. Unfortunately, that did not come to pass.

According to report published by the Government Accountability Office in 2005, the response to EB-5 program has been underwhelming. In other words, it has failed to attract wealthy foreign investors in great numbers. One common complaint of prospective EB-5 investors is that the application process is confusing and time-consuming.  Even those with experience in international law often have trouble following the anfractuous instructions, rules and regulations. 

What Can Serious EB-5 Investors do?

The good news is that there has been some forward movement in the program in recent years.  EB-5 investors filed more than 3,800 applications in 2011, compared to only about 800 in 2007! One explanation for the increase is that many of the previously rigid regulations have since been relaxed, which has expedited the qualification process. It is also a fact that many potential investors now avail themselves of the services of experienced EB-5 consultants.

How Can They Help?

Not every U.S. state has an approved EB-5 regional center project. Thankfully, Florida is on the list. Foreign nationals who are interested in investing in the Sunshine State should contact an experienced EB-5 consultant as soon as possible to get the ball rolling. Even though the process is faster and less confusing than it was in the past, the right adviser can save most investors time and money.

Fred Burgess Esq. has been a practicing attorney for over two decades and has filed more than his fair share of EB-5 regional center application forms in the South Florida area. He is also a licensed mortgage broker and an expert on real estate law.  With the help of his experienced staff, Mr. Burgess has helped countless clients obtain permanent residence under the EB-5 program.

Developers Find Funding Opportunities As EB-5 Regional Center

The real estate and housing market crash has left real estate developers high and dry as the struggling economy continues to inflict a veritable drought on investors willing to brave the risky market. Fortunately there is one avenue of investment that has actually grown with the deflation of the U.S. economy. The decline of the American dollar may be bad news for us, but to foreign investors it’s a sweet opportunity to get more bang for their buck- or pound, franc or euro. For solvent foreign nationals looking to live and work in the U.S. this is great news. Through the EB-5 visa program, they can gain permanent resident status for themselves and their immediate family, simply by investing in an EB-5 Regional Center. For real estate developers, achieving official Regional Center designation opens up a world of project funding opportunities.

Advantages of Regional Center Designation

• Under the Regional Center designation, qualifying projects gain instant legitimacy and marketing with foreign investors looking to immigrate to the U.S.

• Because of the program requirements, the minimum investment capital will be between $500,000 and $1,000,000. Not only is this a guaranteed high investment, your project benefits from the get go since you know ahead of time what to expect.

• Regional Center investments appeal to foreign investors who are not interested in direct control over their majority share, so you get the capital your project needs without giving up the power to manage and direct its development.

Going Through The Process

Despite the obvious advantages to gaining Regional Center status, many developers are daunted by a major con- the application and approval process itself. The process, which can take anywhere from six months to a year, involves intense planning, submission of paper work, and a rigidly adhered to list of requirements and scheduling. The expense of hiring the multitude of experts needed to successfully achieve Regional Center designation can make gaining access to foreign investors tantalizingly out of reach. The best way to go is to hire an experienced EB-5 consultant firm like EB-5 Exclusive, which gives you access to a full team of professionals who can take you smoothly through the process from start to finish. Instead of paying multiple parties, you’ll pay one, and the return on that investment could save your business.

Is The EB-5 Investment Visa For You?

If you’re looking to invest or start a business in the United States, the easiest way for you and your immediate family to immigrate to the U.S. is through the EB-5 investment visa program. Although the price may be a bit steep for some—you’ve got to be ready to invest anywhere between $500,000 and $1 million in U.S. dollars—if you’re looking for a green card suitable for you and your family, there’s no quicker, more secure route to permanent citizenship in the current U.S. political and economic climate.

Investment Options

There are two basic investment options open to qualified EB-5 investors: Individual Business and Regional Center. Although foreign investors must meet the same requirement with either investment type—investment capital between $500,000 and $1 million, and the creation of a minimum of ten full-time positions for U.S. workers—there are incentives for each. The individual business plan lets the investor have far more control of their investment and business function, so if you’re looking to start your own business and want to be heavily involved, this might be the way to go. However, keep in mind that with power comes responsibility. You’ll be on your own making sure that your investment doesn’t fail, and creating conditions which fulfill your green card requirements. You’ll also have to provide proof of such.

Regional Centers are an easier option for investors who don’t mind taking a backseat to the business. Because they are pre-qualified EB-5 investment areas, they already have the job creation aspects and proof in place, and they are far more secure an investment than a start up business, although no investment is risk free. Regional Centers offer the added incentive of allowing foreign nationals to invest on the lower end of the scale- $500,000 instead of $1 million.

Either way you go, you’re going to want some expert assistance. You may feel like you can handle it all, but a word to the wise- hire yourself an experienced EB-5 consultant. EB-5 Exclusive offers investors a whole team of professionals to guide you through the process from start to finish- isn’t your permanent residency status worth it?

About EB-5 Visas and Immigrant Investors

EB-5 Visas offer an opportunity for immigrant investors to obtain a green card and qualify more quickly for permanent residence in the United States. The program is open to foreign investors in any country who meet specific qualifications for participation in the EB-5 Visa program. While a limited number of EB-5 Visas are available annually, the quota is almost never met. If you meet the qualifications for the EB-5 Visa program, there’s a very high likelihood that there will be visas available to you.

What Is the Purpose of the EB-5 Visa Program?

The program was designed to encourage the creation of jobs for legal U.S. residents, and encourage foreign investors to bring their assets to the United States. In order to encourage those investments, the U.S. offers immigration benefits to immigrant investors who are willing to make a substantial investment in a U.S. business. There are two levels of EB-5 Visas with different investment requirements. A regular EB-5 investment visa requires that foreign investors make an investment of at least $1,000,000. The EB-5 Regional Center Program targets specific regions that would most benefit from job creation, and requires an investment of $500,000. In either case, the investment must create at least 10 full-time jobs for U.S. residents.

What Are the Benefits for EB-5 Investors?

EB-5 investors are entitled to a return on their investment, and may sell their interest in the qualifying venture after five years. The main benefit for immigrant investors, however, is that foreign investors and their qualifying family members receive immigrant green card visas and the opportunity to qualify for U.S. citizenship or permanent resident status at an accelerated rate. EB-5 Visas grant permission for the investor, the investor’s spouse and his children under the age of 21 to live and work in the United States.

What Other Requirements Must EB-5 Investors Meet?

In order to qualify for an EB-5 investor visa, the investor must meet requirements that include a minimum liquid net worth and must have no criminal history. In addition, the investor must submit financial and medical records for perusal.

If you are a potential immigrant investor, qualified EB-5 consultants can answer any other questions you may have about qualifying for EB-5 Visas for yourself and your family.

How to Attract Immigrant investors Through an EB-5 Regional Center

Originally established in 1990, the EB-5 program has enjoyed a resurgence in popularity since the economic downturn as many disadvantaged communities seek novel ways to increase job creation and decrease unemployment.

The main purpose of the EB-5 program is to encourage foreign investors to make targeted investments that create permanent U.S. jobs. The foreign investors – who must make a minimum investment of $1,000,000 in the regular program or $500,000 in specially targeted high-unemployment areas – qualify for immediate conditional permanent resident status in the U.S., permanent resident status after two years, and citizenship after five years. The United States Citizenship and Immigration Services set aside 10,000 green card visas annually for EB-5 program participants, but in 2009, issued just over 4,200 of them, most of them in a newer section of the program, the EB-5 Regional Center program.

EB-5 Regional Centers are gaining popularity with disadvantaged communities seeking foreign investors to help rejuvenate their failing job market. In just the past few months, such diverse areas as Montana, Missoula, Missouri, North Bay, California and Grand Forks, North Dakota have announced the formation of an EB-5 Regional Center to attract immigrant investors to their cities and towns.

The rules governing EB-5 investment are complex, both for the immigrant investors and for those seeking to create an EB-5 Regional Center. Like many laws dealing with immigration, citizenship and trade, there are many regulations that must be followed and conditions that must be met in order for the immigrant investor to qualify for a permanent green card visa for himself and his immediate family. In addition, the EB-5 Regional Center must be approved by USCIC before investors can make an application for an EB-5 visa. Complying with the various rules and regulations is vital to the success of the EB-5 Regional Center application, as well as for the approval of each EB-5 visa.

Research is no substitute for experience. There are several law and consulting firms nationwide that have successfully navigated the system for EB-5 Regional Center approval, and shepherded immigrant investors through the EB-5 application process. Whether you’re seeking approval for a new EB-5 center or applying for an EB-5 visa, don’t go it alone. Consult an experienced EB-5 consulting firm to help you through the complex process and increase your chances of success.

What Is The Total Cost To An Investor For A EB-5 Visa?

Very often investors get confused with the total amount of money they have to come up with in order to obtain their green card through investment. Generally, most of them realize that the USA investor visa requires $1,000,000 investment or $500,000 if the EB-5 investment is made in the project located in a Targeted Employment Area.


However, many investors are not familiar or get confused with other costs that may arise when they decide to take part in the investor visa program. We will try to clarify that below.

First of all, when searching for a Regional Center project, the investor needs to consider paying an administrative fee, which varies depending on the Regional Center. On the one hand, there are Regional Centers that do not charge administrative fee. On the other hand, there are those that charge up to $60,000. However, the average administrative fee required by Regional Centers is about $35,000. Keep in mind that a higher administrative fee does not necessarily mean better programs. It is important to understand where the money is going. To understand how your investment funds and the administrative fee are being used it is important to understand that the EB-5 Regional Center and the EB-5 Project are two independent entities. The total amount of investment ($500,000 or $1,000,000) is invested into the development of the EB-5 Project and the administrative fee charged by the EB-5 Regional Center usually covers the Regional Center’s costs connected with its approval, as well as marketing, referral fees and promotion of the EB-5 Project.

Secondly, the investor should know that obtaining an EB-5 green card is a complex process that requires hiring an experienced EB-5 attorney. The costs associated with the attorney’s EB-5 services usually vary from $10,000 to $18,000.

Moreover, the investor should keep in mind that on top of legal fees, associated with the immigration attorney, he/she will need to pay fees to the USCIS (United States Citizenship and Immigration Service) when filing petition I-526 for conditional permanent residence, and in two years after its approval they will need to file petition I-829 for removal of conditions and will need to pay an additional fee to the USCIS.

Many EB-5 investors that have contacted us think that the total cost of the EB-5 Visa is $500,000 or $1,000,000. It is important to always keep the fees mentioned above in mind, to avoid confusion.

If you would like to better understand the EB-5 process and the costs associated with the program, please contact one of our experienced consultants via email at info@exclusivevisas.com or use our online request form.

More developers turning to EB-5 visa program for construction funding

With banks offering very little in the way of funding for construction projects, a number of developers across the country are looking to the federal EB-5 visa program to secure financial assistance from foreign investors, according to a recent article in the Wall Street Journal.

According to the news provider, the use of the program nearly doubled last year to 1,995 investors applying during the fiscal year that ended in September. Additionally, when the economy was booming in 2006, there were only 486 applicants, according to the U.S. Citizenship and Immigration Services.

Through the EB-5 visa program, foreign nationals have an opportunity to obtain U.S. green card eligibility by investing $1 million (or $500,000 in some areas) in an American project or company that either maintains or creates at least 10 full-time jobs.

Throughout its history, the program has attracted investors from a number of foreign countries including India and China, and has helped fund projects in a variety of industries from tourism to manufacturing, the news source said.

One of the most high-profile examples of projects utilizing EB-5 funding is the Nets basketball arena in Brooklyn, New York, which is currently under construction. Some people close to the project have said that the developers have secured financial commitments of approximately $249 million from nearly 500 foreign investors, according to the Journal. That kind of financial assistance may not have been possible from a local bank.

Evan Zeppos, a spokesman for developer Jackson Street Management, which plans to raise a significant amount of money for its recently approved Milwaukee Marriott Hotel, told the news source that the EB-5 visa program is particularly helpful in such difficult economic times.

"It's an attractive alternative," Zeppos said. "Any developer knows now that for financing, the faucet is still very tight."

Some members of Congress and other legislators, including Vermont Governor Peter Shumlin, have also decided to promote the program in order to stimulate the local economy and create jobs. In his recent inaugural address, Shumlin said that one of his top priorities was for Vermont to take more advantage of the EB-5 visa program, which would assist companies in the state, according to the Burlington Free Press.

Jay Peak Ski Resort in Vermont Attracts Foreign Investors Through EB-5 visa Program

While a number of businesses in the Jay area of Vermont have struggled to bring in money, Jay Peak ski resort has been able to secure significant funding from foreign investors, NPR reports.

"We've raised almost $200 million of equity capital to transform Jay Peak from a winter-only ski resort to a true 52-week-a-year resort facility," Bill Stenger, the owner of the resort, told the news provider.

In addition to the 80 ski trails at Jay Peak, the resort includes a hotel, ice arena and golf course. A large water park with a retractable glass dome for the winter is also under construction, the news source said.

Stenger told the news source that he is particularly pleased that there are approximately 50 local workers employed by the resort who operate Caterpillar trucks made in America.

"They were all born and raised in this area — went to North Country High School, the career center, some to Vermont Tech, and now they are working at Jay Peak building this facility," he said.

Much of these jobs and funding for the resort's facilities have come from overseas investors through the federal EB-5 visa program. Through this program, foreign nationals are eligible to obtain a U.S. green card if they invest $1 million (or $500,000 in some areas) in an American company or project that either maintains or creates at least 10 full-time jobs.

According to the U.S. Citizenship and Immigration Services (USCIS), there are more than 135 EB-5 regional centers around the country. One such regional center, which covers the entire state of Vermont, specializes in the ski and tourism industry, education, manufacturing, professional services and information publishing, according to the USCIS.

In all, 10,000 visas are set aside each year for the EB-5 program, with half of them allotted for investors going through regional centers and investing in existing businesses, according to the news source. The other half is set aside for entrepreneurs looking to start their own business through an investment.

In order to continue attracting foreign nationals to the EB-5 visa program, a number of supporters from both political parties have attempted to get it renewed in Congress. At his recent inauguration speech, Vermont Governor Peter Shumlin said that one of the state's top priorities should be to take better advantage of the EB-5 program in order to help Vermont companies, such as Jay Peak, to receive necessary overseas funding.