Since its launch in the 1990s, the EB-5 investment program has brought investors from all over the world to the United States. Foreign investment in qualifying EB-5 businesses has helped the United States’ economy and reduced unemployment. This capital is usually offered at below-market rates, which is advantageous for U.S. business owners. In addition, businesses receiving EB-5 investment capital are required to generate at least 10 full-time jobs.
Recent changes to the regulations of the EB5 investment industry have increased interest in the program. The repeal of the Modernization Rule in June 2021 reduced the minimum investment threshold from $900,000 to $500,000 for business projects located in targeted employment areas (TEAs). This makes the EB-5 program more accessible to interested foreign nationals.
EB-5 investments can be an excellent source of funding. However, in order to qualify for the EB-5 program, business owners must plan their projects carefully to ensure compliance with United States Citizenship and Immigration Services (USCIS) regulations and make their offerings attractive.
How to Make an EB-5 Project Attractive to Investors
EB-5 investors tend to look for safe investment opportunities that provide them with the most benefits. Many foreign nationals value their eligibility for U.S. citizenship more than the return on their investments, so they look for projects with low immigration risk. The best projects, therefore, comply with all USCIS regulations and have viable business plans.
Another thing that foreign nationals look for when evaluating EB-5 investment opportunities is the business’s ability to generate jobs. As each EB-5 investment needs to create at least 10 jobs, projects that allow for the creation of large numbers of jobs are more likely to guarantee that each investor’s quota is met early on. Such projects have an especially low immigration risk.
Marketing Your Project
EB-5 projects require a carefully devised marketing strategy. EB-5 business owners must create marketing materials that appeal to their target audience. This may include brochures and other printed materials translated into the potential investors’ native language. As many potential investors do research on available projects from overseas, EB-5 projects must have a strong online presence to catch their attention. Informational videos, for instance, can help business owners engage investors. Seminars, conducted online or in person, can be a good way for business owners to interact directly with their potential investors and answer their questions.
EB-5 capital provides significant benefits to U.S. businesses. Of course, creating and marketing an EB-5 project that follows all USCIS regulations can be challenging. Business owners are advised to consult with an immigration attorney and EB-5 specialists.
