EB-5 Project Due Diligence: What To Look For When Choosing A Project

The EB-5 Immigrant Investor Program allows foreign investors to obtain permanent residency in the United States by investing a minimum of $900,000 in a qualifying project to create or preserve at least ten full-time jobs. When considering an investment opportunity for EB-5 purposes, it is crucial to conduct thorough due diligence on the project to ensure that it meets USCIS requirements and is a sound investment. Here is a guide on what to look for when considering EB-5 immigration.

Track record and experience:

One of the most critical factors to consider when evaluating an EB-5 project is the track record and experience of the project developers and managers. Look for a team with a proven track record of successful projects and experience managing projects of similar size and scope.

Project viability and market demand:

Another important consideration is the project’s viability and the market’s level of demand. Conduct thorough market research to determine if there is a real need for the project in the community and if there is a market demand for the goods or services it will provide. Ensure the project is financially feasible and has a clear path to profitability.

Job creation potential:

The primary purpose of the EB-5 program is to create jobs for U.S. workers. Therefore, it is crucial to evaluate the project’s job creation potential and ensure that it meets USCIS requirements. Look for a project that has a well-defined plan for creating and preserving the required number of jobs, and that can demonstrate a track record of job creation in similar projects.

Capital structure and financing:

Evaluate the capital structure and financing of the project to ensure that it is financially sound and that the investment will be used for the intended purposes. Look for a project with a solid financing plan in place and a clear understanding of the costs associated with the project.

Project transparency and disclosure:

Finally, it is essential to ensure that the project developers are transparent and provide full disclosure of all material information related to the project. Look for a project that provides comprehensive information on the investment opportunity, including financial projections, risk factors, and legal documentation. It is also crucial to conduct thorough background checks on the project developers and managers to ensure that they have a good reputation and no history of legal or financial issues.