MARCH 27, 2023 | Forbes
Investing in an EB-5 regional center project can be a lucrative opportunity for foreign investors seeking a green card in the United States. However, recent banking failures have raised concerns about the safety of foreign investor funds. To help mitigate unforeseen risks and ensure a successful investment, investors should consider the following checklist of considerations before investing in an EB-5 project.
Firstly, investors should carefully evaluate the viability of the regional center project and its management team to avoid fraud and poor management that could result in the loss of their investment and jeopardize their immigration status. Secondly, attention must be given to the creation of at least 10 full-time jobs for US workers for every investor, as failure to meet this requirement could make investors ineligible for permanent residency. Processing times and liquidity and currency risks are also critical factors to consider, as well as market fluctuations and tax repercussions.
Moreover, foreign investors must demonstrate that the money invested was acquired legally and maintain a clean source of funds throughout the investment process. Even one dollar of undocumented earnings mixed with other funds can jeopardize the entire investment. As such, it is essential to keep clean earnings separate and invest them in a new bank account to be used exclusively for the EB-5 investment.
By taking these considerations into account and seeking advice from immigration attorneys, financial and tax advisors, foreign investors can make informed decisions and maximize their chances of a successful EB-5 investment. Despite the unforeseen risks that may arise, these checklist items can help provide a solid foundation for a successful EB-5 investment.