general EB-5 Questions

How many EB-5 Visas are allocated each year for the EB-5 Visa classification?

The EB-5 Program allocates 10,000 visas per year for immigrants and their families whose qualifying investments result in the creation or preservation of at least ten full-time jobs for U.S. workers. Of the total, 3,000 visas are specifically allocated to immigrants who invest through USCIS-designated Regional Centers.

Must an investor have previous business experience or a minimum level of education to participate in the EB-5 Program?

There are no requirements with respect to prior business experience or education. The only requirement is that the investor is accredited and meets certain suitability standards, with respect to income, net worth, etc. The investor also must prove unconditionally that the source of funds is legal, through the submission of proper documentation.

Must an investor speak English to participate in the EB-5 Program?

No, but it is strongly recommended that a non-English speaking investor should hire the services of a translator to ensure that the investor fully understands the investment terms and the offering materials are reviewed carefully before the investor makes a decision.

What is a new business enterprise?

A new business enterprise is a business organization with one or more managing members or general partners, who manage the business and assume legal debts and obligations, and one or more limited partners or members, who are liable only to the extent of their investments. Members or limited partners also enjoy rights to the new business enterprise (company, limited liability company, or partnership’s) cash flow, but are not liable for company obligations.

How is the new business enterprise interest protected?

The USCIS requires that some financial risk be assumed by the investor in order to qualify for the EB-5 Immigrant Investor Program. Each investor must qualify for the minimum at-risk capital and new job creation requirement. Every effort is made by the General Partner to minimize the amount of risk by ensuring that the investment is properly collateralized and that the new commercial enterprise remains in strong financial standing.

May several investors combine or “pool” their investment capital through one new business enterprise?

The regulations specifically allow for the pooling of funds by several investors to establish a new business enterprise sufficient to qualify all participating investors. The only requirement is that each investor must individually meet the minimum at-risk capital and new job creation requirements. The Ashcroft Sullivan Economic Development Centers will achieve the pooling of funds to invest in high-quality opportunistic real estate investments.

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

There are specific risk factors for each new business enterprise, which are specifically addressed and described in detail in the offering materials for each new business enterprise. Risk factors differ for each new commercial enterprise, but may include economic conditions, failure to meet job requirements, and denied immigration status under the USCIS Immigrant Investor Program.