How to safeguard your EB-5 visa investment

US visaThe number of EB-5 program applications from India has increased dramatically in recent years

Gaining legal access to American residency has been made possible by the EB-5 investor visa program. Essentially popular among the wealthy, the program is now also attracting students and business owners, given the ROI — a US Green Card.

In addition, new regulations, including the revival of the regional center program, have made the route even more viable, as the onus of the actual investment lies in your chosen partners; your only responsibility is due diligence in finding the right partners.

Read: What the new reformed EB-5 visa program brings along (March 18, 2022)

Although the EB-5 program’s requirements appear straightforward, a few things must be kept in mind while applying for one. You can try to secure EB-5 capital on your own, but working with professional EB-5 partners simplifies and speeds up the process significantly.

You may need to consult with multiple legal professionals to ensure that you understand all of the immigration, tax, and securities implications of using EB-5 capital. Accountants, consultants, and business plan writers are also helpful EB-5 professionals.

Redirecting your investment through authorized EB-5 regional centers increases the chances of successful application. Authorized regional centers can help you with several vital formalities and documentation required for a successful EB-5 visa application.

Read: Indians received 17% of all EB-5 investor visas in 2020 (December 28, 2021)

They can also provide beneficial ways to channel and source your investment to get maximum returns. While selecting your partners, you must proactively take note of any third-party affiliations.

If you find any, it is recommended that you do a background check on their reputation, track record, and history. When investing through a regional center, the success rate of your application entirely falls on how successful the project will be.

Hence, diving deep into the particulars, financials, and projection of the project, permits, etc., should be a top priority.

The EB-5 investment of an investor is usually said to be volatile but taking calculated steps can assure the ROI. Financial risk refers to the risk of not receiving a return on investment at the end of the investment term.

Read: What does expiry of EB-5 program mean for immigrant investors (August 12, 2021)

In the event that the I-526 petition is denied, the risk of obtaining a green card is referred to as immigration risk. These risks can be avoided by choosing the right immigration advisors and legal professionals.

Investors seek EB-5 projects with the lowest financial and immigration risk possible. By using an escrow structure to release EB-5 funds to the project, you can reduce financial risk and provide peace of mind.

In this scenario, the investment funds are held in escrow and released to the JCE once the I-526 is approved. The return of funds in the event of an I-526 denial should be specified in the project documents.

Read: EB-5 Immigrant Investor Program (April 19, 2022)

The number of EB-5 program applications from India has increased dramatically in recent years, contributing to increased trust in the program.

The EB-5 program is undoubtedly the most secure and expedited legal path to permanent residency in the United States. This route is especially beneficial for those who want to permanently relocate to the US in the hopes of finding work or starting a business.

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