The Cost of an EB-5 Regional Center Project Investment

As an immigration attorney representing EB-5 investors, one of the frequently asked questions is: what is the total cost of an EB-5 Regional Center investment?  Savvy investors understand, in order to go through the EB-5 Visa process, they will incur other expenses in addition to the $500,000 capital investment.

So what is the cost of an EB-5 investment?  Unfortunately, there is no set dollar amount.  Each client’s case is distinct, and there are a multitude of factors that may influence their costs.  This article will address the most common EB-5 costs - but it’s important to keep in mind that expenditures for your specific case may vary.

The Investment:
One cost that is universal for all clients is the invested capital.  Most Regional Center projects are located in a Targeted Employment Area, which allows for a reduced investment amount of $500,000.

Legal Fees:
Just as you wouldn’t forgo obtaining a doctor to perform a surgery, you also want to be sure to retain a competent EB-5 attorney to file your petition.  Depending on whether your lawyer bills a flat fee or hourly rate for an EB-5 investment, you can expect to pay anywhere from $10,000 to $20,000 for legal services.  Depending on the firm you choose, this may or may not include the services of an EB-5 Investment Advisor.

Project Administration Fees:
The majority of projects out there charge an administration fee when subscribing to their project.  The typical administration fee ranges from $30,000 to $60,000.  These fees are generally used to pay marketing costs, as well as “finder fees” for agents abroad.

Filing Fees:
With every I-526 Petition filed, USCIS requires the payment of a filing fee.  Currently, the filing fee for an I-526 Petition is $1,500.

Translation Fees:
USCIS requires any documentation or evidence not in English to be accompanied by an English translation.  Further, in their latest EB-5 stakeholder meeting, USCIS indicated that the entire document will need translating and abstract translations are not accepted.  Translation service fees vary depending on the document content and number of words.  You can expect to pay between $0.25 and $0.50 per word.

Miscellaneous Costs:
If you choose to travel to the US to speak with Regional Centers or your attorney, you might incur additional expenses such as travel, housing and visa costs.

Although these are a few of the most common expenses associated with the EB-5 investor visa, additional costs may arise depending on your individual case.  You may also be able to mitigate the costs of EB-5 through varies means.  A conservative estimate of an EB-5 investment from start to finish will be around $568,000.

Barella Law | +1 (239) 228-2895 | kbarella@barellalaw.com | www.barellalaw.com

The Information contained in this blog is for information purposes only, and should not be considered legal advice for any individual case or situation.  The information provided is not a substitute for consultation with an attorney.  No attorney/client relationship is created by the information contained herein.

Conférence Snowbirds en Floride (Snowbirds Conference in Florida)

On January 28, Barella Law, LLC spoke to a group of Quebeckers at the annual Conférence Snowbirds en Floride (Snowbirds Conference in Florida) in Aventura, Florida.

The conference was a great opportunity to explain the different immigration options Canadians have to enter to the US.  We also had the opportunity to meet others in professional industries that serve snowbirds in Florida.Along with our immigration firm, other speakers included a CPA, insurance representative, financial planner, and a Québec attorney.

The conference attendees were very receptive and eager to ask questions.  Barella Law continues to promote and build a relationship with our clients in Québec, as well as other parts of Canada, and around the world. We look forward to hopefully participating in next year’s conference.

Barella Law | +1 (239) 228-2895 | kbarella@barellalaw.com | www.barellalaw.com

Conditional Green Card Through EB-5: Your Rights and Responsibilities as a Permanent Resident

The wait is over, and you have finally received your US Permanent Resident Card (“Green Card”) through the EB-5 program.  What happens now?  Chances are you’ve spent countless hours researching the EB-5 visa, regional centers, projects, attorneys etc.  However, do you know what your rights, obligations, and responsibilities are as a newly arrived Permanent Resident?

Firstly, an approved EB-5 visa entitles you to a two-year conditional Green Card.  A conditional Green Card is exactly what it sounds like.  There are certain conditions that must be met before you receive a “full-fledged” and renewable Permanent Resident Card.    At the conclusion of two-years, you will need to have an attorney file for you, form I-829, Removal of Conditions.  Provided you show that your EB-5 investment has created the requisite number of jobs among other factors, you will be issued a Permanent Resident Card, valid for ten years.  In the future, you need only apply for renewal of your card before it expires.

As a legal permanent resident, you are entitled to many of the same privileges as United States citizens.  You may live, work, or travel anywhere in the United States.  You and your children can attend school and qualify for in-state tuition breaks.  However, you may not vote in elections, or make any false claims of US citizenship.

One question many immigration attorneys receive is, whether legal permanent residents can spend a significant amount of time outside the US.  The goal of permanent residency is just that – to be a permanent resident of the United States.  Any prolonged period outside of the country may be seen as abandonment of your permanent resident status.  It is important you remember to make the United States your permanent home.  

After maintaining permanent residency for a period of five years, you may be eligible to apply for US citizenship.  Benefits of US citizenship include, the right to vote, obtain a federal job, sponsor family members for residency, and travel with a US passport.

For more information on the EB-5 visa program, or any other US immigration matters, please contact our office.  

Barella Law | +1 (239) 228-2895 | kbarella@barellalaw.com | www.barellalaw.com

The Information contained in this blog is for information purposes only, and should not be considered legal advice for any individual case or situation.  The information provided is not a substitute for consultation with an attorney.  No attorney/client relationship is created by the information contained herein.

EB-5 Regional Centers and Securities Law

EB-5 investors are becoming increasingly aware of the Securities and Exchange Commission (SEC),  the top U.S. securities regulator, and its involvement in the EB-5 Visa Program. As a result, investors are anxious to learn the connection between the nation’s financial watchdog and the immigration program.  Created by the Securities Act of 1934, the SEC was designed to protect investors from fraud by enforcing securities laws requiring complete disclosure of information and regulating the people involved in the securities transactions.  Attorneys handling EB-5 Visa clients should be prepared to provide a competent explanation on both immigration and securities issues involved in the EB-5 process.  In the past, securities law was considered a specialty area of law reserved for large firms in cities such as New York.  However, at present, to practice as an EB-5 attorney, it is important to have at least a minimum understanding of the U.S. securities law.

The SEC defines a security as any stock, bond, debenture, note, transferable share, investment contract or certificate of interest in a profit-sharing agreement. In general, all securities offered in the United States must be registered with the SEC and comply with the regulations, or be eligible to claim an exemption from registration. A typical EB-5 Regional Center Project is structured in the form of a Limited Partnership and according to SEC, interest in the partnership is an investment contract and therefore, a security . To further elaborate on the term “investment contract”, the Supreme Court of the United States determined the definition in the landmark case of SEC v. Howey.

According to the Supreme Court, an investment contract is any transaction in which (1) a person invests money (2) in a common enterprise (3) is led to expect profits and (4) solely from the efforts of others.  The four elements combined  are commonly referred to as the Howey Test and are used to determine whether an instrument qualifies an investment contract. 

The first element is interpreted as the investor not purchasing a consumable commodity or service, rather, making an actual bona fide at risk investment.  The second element of commonality is determined by multiple investors having interrelated interest in a common scheme (it is sufficient if a single investor has a common interest).  The third element of expectation of profits is interpreted as expected returns must come from the earnings of the enterprise.  Lastly, earnings must come from the efforts of others, this is broadly construed to mean that the efforts of managers must predominate over the passive investor.

EB-5 Regional Center Projects structured as a Limited Partnership meet all 4 elements of the Howey Test and are therefore defined as an “investment contract”. Foreign investors (1) invest at minimum $500,000 (2) into a common enterprise, Limited Partnership, (3) with an expectation of returns on the investment and (4) through the efforts of the managing partner. 

Simply meeting the definition of a security is just the beginning of the complex regulations of U.S. securities. In our next blog, we will elaborate on the scope of the regulatory authority of the EB-5 Visa Program by SEC. 

For more information on the EB-5 Visa and SEC compliance, please contact our office today.

Barella Law | +1 (239) 228-2895 | kbarella@barellalaw.com | www.barellalaw.com

The Information contained in this blog is for information purposes only, and should not be considered legal advice for any individual case or situation.  The information provided is not a substitute for consultation with an attorney.  No attorney/client relationship is created by the information contained herein.

The EB-5 Misconception

Does the EB-5 program allow potential immigrants to “cut” to the front of the immigration line? The answer is a definitive, no.  Believed by many to be a shortcut to US permanent residency, the EB-5 program is not a line-cutting program.  In fact, the US Government sets aside each year, 10,000 visas for EB-5 investors.  Of the 10,000 visas, 3,000 are set aside for investments made in Target Employment Areas (TEA).  

As the government specifically sets these visas aside, it’s not possible for EB-5 investors to steal visas from other immigrants or jump to the front of the line.  Compared to other countries around the world that utilize a point system for immigration, the United States does not have such a program.  Unless a potential immigrant has a job or family member available to sponsor them, there are limited options for obtaining US Permanent Residency.  

The EB-5 Visa Program allows these immigrants with limited options to legally move to the US.  This misconception that EB-5 investors “buy” their way into the US at the expense of immigrants of lesser means is outdated and simply incorrect.  The government implements visa quotas, which allow each visa category a limited number of spaces.  

The benefits of the EB-5 program provide immigrants with a chance to live, work and study in the US, with the added benefit of their investment contribution leading to the growth of the US economy.  

Barella Law | +1 (239) 228-2895 | kbarella@barellalaw.com | www.barellalaw.com

The Information contained in this blog is for information purposes only, and should not be considered legal advice for any individual case or situation.  The information provided is not a substitute for consultation with an attorney.  No attorney/client relationship is created by the information contained herein.