The following is a list of questions to ask all Regional Centers
Safety and Security:
- How many I-526 approvals do your EB-5 investors have?
- Have any of your EB-5 investors ever received an I-526 denial? If so, for what kind of reasons?
- How many I-829 approvals do your EB-5 Investors have?
- Have any of your EB-5 investors ever received an I-829 denial? If so, for what kind of reasons?
- Have any of your EB-5 partnerships successfully returned capital to your EB-5 investors? If so, how many and which partnerships?
- Are your track record statistics (I-526 approvals, I-829 approvals, return of capital) professionally audited by a third-party?
- What is the methodology that is being used for calculating job creation?
- Are the claimed jobs direct or indirect jobs or a combination of both? How long will construction of the project take?
- If direct jobs are claimed, how will you gather I-9’s, W-2’s and proof of citizenship?
- Has the developer provided a completion guarantee on the project?
- How is job creation allocated among the EB-5 investors?
Regional Center Operations:
- Do you provide my immigration attorney with a template for my I-526 and I-829 petitions?
- Does your team actively monitor the status of the project during development for construction compliance, job creation, ability to service debt, etc.?
- Do you provide regular reporting to EB-5 investors such as project status updates, K-1s and capital account statements?
- Are the new commercial enterprise’s finances professionally audited by a third-party?
- Is each EB-5 investor allowed to see the financial records of the new commercial enterprise?
- Who is responsible for the day to day expenses of the new commercial enterprise?
- What costs will the EB-5 partnership be responsible for?
- What currently are the effects of retrogression? Does it have an effect on my investment?
- Who is the developer of the project and what are their qualifications?
- Is the developer or owner of the project affiliated with the regional center? If so, what conflicts of interest does this raise?
- Has the developer ever developed an EB-5 related project before? If so, what were the results?
- Is the capital stack in place? Are all financing agreements executed?
- What position will the EB-5 funds take in the capital stack? Is this a Loan or an Equity investment?
- What is the collateral to secure the repayment of the EB-5 funds?
- What is the Borrower’s strategy to repay the EB-5 funds?