subject: What you may not be told about the EB-5 visa [print this page] What you may not be told about the EB-5 visa
For thousands of families the EB-5 visa has been the ideal route into the USA. Providing the applicant, their spouse, and their children under 21 with sought after green cards and the security of permanent residence. Certain EB-5 programs require investment of $500,000 in a US government regional center program and a number of families, who initially participated in the program, five years ago, have subsequently had their investment repaid in full so far so good.
However, the expansion of the program, approaching 100 regional centers, some of which appear both unproven and speculative, along with aggressive selling techniques entering the equation, has raised concern. Certainly the range of projects on offer is now varied both in content and quality.
A number of centers have highlighted their positive features such as offering solid investment opportunities and looking out for potential investors' best interests. However, certain claims may only provide the positive half of the story rather than the negative half. Leading EB-5 experts have researched many regional center programs and identified a number of anomalies not always bought to the attention of potential EB-5 visa applicants.
A number of regional centers claim that on their program not a single I-526 has been denied to date. This claim, while it may be true, is only half the story. From the EB-5 investor's perspective the removal of conditions after two years, (I-829) and the return of their $500,000 investment, may be of equal importance.
Another regional center refers in its sales material to its intention to benefit the local economy for a long time to come and therefore to vigorously protect the integrity of the regional center, as one failed investment would undermine the future of their program. However, potential investors considering such a center as the route to gain permanent residency through the EB-5, are not necessarily made aware of stories running in a local newspaper identifying issues they may feel important. Newspaper comments includes reference to a hearing by the State Banking Commission to decide whether a Company gets a $30 million construction loan needed to finish an incomplete project that attracted funding from EB-5 visa investors. The article states "The money would bail out 69 foreign investors in the project. They invested a minimum of $500,000 apiece and thereby would qualify for U.S. citizenship under the federal government's EB-5 program." "It is an extraordinarily high risk loan," "The proceeds will be used to complete a half constructed, failed project of enormous size." "The loan will prevent harm to the credibility of "this regional center "in the EB-5 program."" The center flagged up its relative safety given that it is State run and therefore subject to state controls. "However, the programs themselves and the investment are in private sector enterprises which could fail and it does not seem likely that the State, in such circumstances, would reimburse investors capital in the event of failure."
It is absolutely imperative that prior to deciding upon a regional center program, potential EB-5 visa applicants are given details both positive and negative from specialists thus allowing them to make an informed decision.
