Investment Criteria
1) Standard: EB-5 applicant must invest a minimum of $ 1 million.
2) Targeted Employment area: : EB-5 applicant must invest a minimum of $500,000 (The CMB Regional Center Investment Plan is designed for this lower investment threshold and is the minimum allowed by U.S law to qualify for the EB-5 Visa/Green Card) in a high unemployment area which is defined as 150% of the national unemployment statistic.
Each foreign national EB-5 Investor must create at least 10 full time U.S.-based jobs direct or indirect. (If indirect job creation the applicant must use any accepted reasonable methodology to substantiate the creation of the requisite 10 jobs.)
the investor must demonstrate that the capital is in fact his or hers and not the fruit of an illegal enterprise of some sort.
The EB-5 applicant’s capital investment must be truly at risk and not simply a loan. Guarantees of return of any capital are strictly prohibited, and if given negate the ‘at risk’ requirement of the EB-5 law.e. New Commercial Enterprise: (i) must be an enterprise formed after November 29, 1990; and (ii) a for-profit enterprise formed for the ongoing conduct of any lawful business. May involve expanding an existing business.
- Participation in Management:
The applicant must have some involvement in the management of the new commercial enterprise, such as serving as limited partners in an enterprise.
Investor Qualifications
- Accredited investor status:
(a) is an "accredited" investor, as that term is defined by Regulation D of the Securities Act, which means any investor meeting at least one of the following conditions:
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1) any natural person whose individual net worth (or joint net worth with that person's spouse, if applicable) at the time of purchase exceeds $1,000,000; or
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2) any natural person who had an individual income in excess of $200,000 or joint income with that person's spouse in excess of $300,000 in each of the two most recent years and who reasonably expects an income in excess of $300,000 in the current year; or
(b) has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of an investment in the Units, and of making an informed investment decision, and does not require the use of a Purchaser Representative.
Once the investor is qualified as a candidate the client must be presented with the Subscription Agreement, Partnership Agreement and Private Placement Memo.
The potential investor must secure their own legal/financial counsel to review and explain the provisions of each document. Each investor will sign a statement that they in fact have received all of these documents.
If the investor chooses to invest they must sign all documents and deposit $530,000 in an escrow account with the partnership named as the benefactor.
The investor must also secure his/her own immigration attorney. We recommend Mr. Lincoln Stone. However, the investor may secure the attorney of their choice.
The investor must gather and provide a multitude of documents to their immigration attorney for preparation of the application (the I-526 petition). Some of the documents required will be tax returns, proof of income, health statements, proof of citizenship, bank statements, and other documents needed by their immigration attorney to build the I-526 petition. CMB will provide to the immigration attorney all documents about the business investment necessary to support the I-526 Petition.
This gathering of documents and time to prepare the I-526 Petition is totally dependent upon the cooperation of the investor and his/her attorney. Typically this can take 6-8 weeks.
The immigration attorney submits the I-526 Petition to the United States Citizenship and Immigration Service (USCIS). Barring any inquiries or requests for further documents the petition is typically approved in 6 to 8 weeks. After the I-526 petition approval, the petition is forwarded to the USCIS. A packet is generated and is forwarded to immigration legal counsel. The packet consists of certain documents which must be signed and requests certain information which must be supplied. The packet sets forth the steps that must be taken before an immigrant visa interview can be scheduled at a U.S. Consulate.
Lastly CMB, its agents and Investors must fully comply with Regulation S of the Securities and Exchange Act.
