How to Monitor the Progress of Your EB-5 Investment

Updated: June 23, 2024

WRITTEN BY

EB-5 Insider Team

A group of professionals with years of experience helping people immigrate to the US

Note: This article is for informational purposes only. We are not providing legal advice or selling securities. The articles and content on this site are of a general informational nature only and should not be relied upon for individual circumstances.

An EB-5 visa is one of the most popular options for foreign investors seeking permanent residency in the United States or a path to citizenship. Launched in 1990, the EB-5 Immigrant Investor Visa Program promotes economic growth by requiring foreign investors to invest significantly in a new commercial enterprise that will create at least ten full-time jobs for qualifying U.S. workers.

Foreign investors can choose between a new commercial enterprise or a regional center project, with a lower minimum investment of $800,000 compared to $1,050,000. You’ll want to do your due diligence when choosing which project to invest in, as its success is crucial to your ability to obtain permanent residency.

After investing, EB-5 visa applicants will want to closely monitor the progress of their investment to ensure they meet the visa program’s requirements, including job creation. Investors should receive regular project updates, including financial performance and job creation.

We’re discussing how investors can monitor the progress of their EB-5 investment, including key metrics to track and how to address potential issues.

Importance of Monitoring Your Investment

Every EB-5 investor should conduct thorough due diligence before making their investment. We recommend working with a financial advisor or immigration attorney to check that your selected project is viable. Recent reforms have brought new protections for investors of regional centers and increased UNSIC oversight to prevent non-compliance.

The success of an EB-5 investor’s visa application will rely heavily on the ability of their investment to meet their job creation requirement. An investor must be able to show that at least ten full-time jobs have been, or will be, created when they apply for the conditions of their permanent residency to be removed. Failing to meet the job creation requirements could jeopardize your green card. 

Key Metrics to Track Your Investment

The USCIS requires regional centers to submit regular reports on the progress of their EB-5 projects, which should also be provided to investors. These reports will include information on the project’s financial performance, job creation, and the use of EB-5 investment.

Investors should use it as a key metric to track their investment, comparing the submitted report with any other documentation they have on the project’s progress. Any discrepancies should be raised with the regional center and USCIS.

It’s recommended that EB-5 investors visit the site of their project at least once to observe its progress. A site visit is one of the best ways to gain insight into the project’s current progression and overall progress. A financial advisor or immigration lawyer should attend this visit with you to look for any signs of delays or financial issues. Ensuring that the project is running on time will provide investors with the knowledge that their funds are being used as intended.

Your project should have a business plan that forms the foundation of your monitoring. It should include economic data, projections, forecasting, and a timeline for job creation. Compare this business plan to other documentation you receive and request an amended business plan if it becomes apparent that the project will fail to meet the job creation requirement.

Tools and Resources for Monitoring

You should have an attorney, financial advisor, and other professionals involved throughout your EB-5 application process. They’ll be able to advise on the best tools and resources to monitor your investment.

An attorney or financial advisor will review any documentation you receive to offer guidance on the project’s progress. Hiring an immigration attorney will also help you understand your legal rights under the EB-5 Immigrant Investor Visa Program, particularly following the reforms of RIA.

You can utilize different tools and resources to monitor your investment if you have concerns. You can validate the accounting of the new commercial enterprise or regional center by engaging an auditing firm. They will provide a comprehensive report on the project’s financial situation, including its capital expenditure and the status of its job creation. 

If you want to be able to monitor your investment, you can choose to hire an independent fund administrator to control the disbursement of your funds. While this will add additional expense, a fund administrator will show how the regional center or new commercial enterprise uses their funding to ensure compliance with EB-5 visa process requirements.

EB-5 investors should maintain meticulous records and provide copies of documentation to their immigration attorney to assist with monitoring. Evidence such as tax records, employee contracts, and Form I-9 can be used as evidence for ten full-time positions being created for qualifying employees.

How to Address Issues with Your Investment

It’s almost impossible to eliminate all risks or challenges to your investment. Effective risk management is crucial to ensuring the success of your EB-5 visa and the safety of your investment capital. Identify potential risks early on and implement strategies to avoid pitfalls and minimize the impact of potential delays or disruptions.

You’ll want to work with a team of experts who are experienced in navigating the EB-5 application process, including immigration lawyers and financial advisors. They’ll be able to provide up-to-date guidance on the latest EB-5 immigration regulations, compliance requirements, and investment structures. Hiring these professionals before investing will minimize risk and ensure your chosen project aligns with current regulations.

Contingency planning is crucial to ensuring your EB-5 visa process can continue smoothly if the unexpected should happen. Financial advisors and immigration lawyers will help you develop contingency plans for potential scenarios that may impact your EB-5 investment, including legal options if the project fails to meet the EB-5 requirements for job creation. 

In 2022, Congress passed the EB-5 Reform and Integrity Act (RIA), which included extensive provisions designed to protect investors. One of these includes enabling good faith investors to remain eligible for their EB-5 visa if the regional center project they’ve invested in has failed.

This provision is only available in certain circumstances. It allows the investor to retain their eligibility by having the new commercial enterprise they originally invested in associated with another approved regional center. Alternatively, the investor may retain their eligibility by qualifying for another NCE. The job creation requirement must still be met in either of these scenarios.

Start Your Journey to U.S. Permanent Residency with The Help of EB-5 Insider

EB-5 Insider simplifies your path to permanent U.S. residency and citizenship through investment. We work with foreign nationals to streamline every step of the application process. We’ll help you obtain a permanent U.S. green card by investing $800,000 into the U.S. economy to create 10 full-time jobs for qualifying workers.

Start applying for an EB-5 visa today, or contact our team for more information.

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