The 10 Fundamental Rights of Every EB-5 Investor

The EB-5 Immigrant Investor Program, created by Congress in 1990, offers foreign investors the opportunity to obtain U.S. Green Cards by investing in job-creating projects. While the program has attracted billions of dollars in investments and supported thousands of jobs, it has also faced challenges, including fraud, mismanagement, and lack of transparency.

EB-5 investors, many of whom are unfamiliar with the U.S. investment landscape and face language barriers, can be exposed to wrong practices by some regional centers, sponsors, or developers.

To address these issues and protect the rights of EB-5 investors, EB5AN has created the “EB-5 Investor Bill of Rights.”

This document outlines 10 fundamental rights that EB5AN believes every EB-5 investor should expect and demand from regional centers and EB-5 projects.

What Is the EB-5 Investor Bill of Rights?

The EB-5 Investor Bill of Rights, inspired by the historic U.S. Bill of Rights that established basic protections for American citizens, is a set of 10 rights designed to protect the interests of EB-5 investors. These rights cover various aspects of the EB-5 investment process, from due diligence and project selection to ongoing communication and oversight.

The Bill of Rights aims to promote transparency, accountability, and fair treatment in the EB-5 industry. By clearly defining the rights of EB-5 investors, it empowers them to make informed decisions, engage effectively with regional centers and developers, and protect their investments.

The Bill of Rights was created in 2024 to address the need for stronger investor protections in the EB-5 program and set a new standard for how regional centers should treat EB-5 investors.

EB5AN’s Role in Creating the Bill of Rights

EB5AN has been a leading advocate for best practices, transparency, and integrity in the EB-5 industry. With extensive experience in EB-5 consulting and fund management, EB5AN has gained deep insights into the challenges and opportunities facing EB-5 investors.

Recognizing the need for stronger investor protections, EB5AN took the initiative to develop the EB-5 Investor Bill of Rights. The firm drew on its expertise, industry knowledge, and commitment to investor success to identify the key rights that investors should expect and demand.

By establishing these rights and promoting their adoption across the industry, EB5AN aims to elevate standards, reduce risks, and create a more investor-friendly EB-5 program.

10 Fundamental Rights for EB-5 Investors

The EB-5 Investor Bill of Rights includes 10 fundamental rights for investors, as follows:

1. Right to Direct Communication and Written Answers

Investors have the right to communicate directly with regional center principals and have their questions answered in writing. This ensures that investors can obtain the information they need to make informed decisions and have a record of the responses.

2. Right to Visit the Project Site

Investors have the right to personally visit the project site before investing. This allows them to assess the project’s progress, evaluate potential risks, and meet with key stakeholders.

3. Right to Transparency About Conflicts of Interest

Investors have the right to full disclosure of any conflicts of interest between the sponsor, regional center, and developer. This transparency helps investors understand potential risks and make informed choices.

4. Right to Independent Legal Representation

Investors have the right to hire an independent immigration attorney to represent their interests and provide guidance throughout the EB-5 process. This ensures that investors receive unbiased advice and have an advocate protecting their rights.

5. Right to Review Financial Statements

Investors have the right to review the financial statements of the project company and any guarantors before investing. This information is essential for assessing the financial health, risk profile, and viability of the project.

6. Right to Review the Project’s I-956F Filing Package

Investors have the right to review the project’s I-956F filing package, which is submitted to USCIS for approval. This package contains critical information about the project’s eligibility, job creation potential, and compliance with EB-5 requirements.

7. Right to Information on Track Records

Investors have the right to information on the regional center and developer’s track records, including both successes and failures. This information helps investors evaluate the experience, credibility, and reliability of the key parties involved in the project.

8. Right to Know About Legal Actions Against the Regional Center

Investors have the right to know about any SEC complaints, litigation, or other legal actions against the regional center. This information is crucial for assessing potential risks and red flags associated with the regional center.

9. Right to Regular Project Updates

Investors have the right to receive quarterly reports on the project’s progress, financial performance, and job creation. These updates keep investors informed about their investments and allow them to monitor compliance with EB-5 requirements.

10. Right to Review Financial Documents

Investors have the right to review financial documents that illustrate the flow of their investment funds. This transparency helps ensure that funds are being used as intended and in compliance with EB-5 regulations.

Importance and Impact of the Bill of Rights

The EB-5 Investor Bill of Rights represents a significant step forward in protecting the interests of EB-5 investors and promoting the integrity of the EB-5 program.

The adoption of the Bill of Rights by regional centers and the wider EB-5 industry can have far-reaching positive impacts. It can increase investor confidence, attract more qualified investors, and enhance the overall reputation of the EB-5 program.

Moreover, the Bill of Rights can serve as a catalyst for positive change in the EB-5 industry. It can encourage regional centers and developers to adopt best practices, increase transparency, and prioritize investor interests.

As more stakeholders embrace the principles and standards outlined in the Bill of Rights, it can help create a more level playing field, reduce instances of fraud or mismanagement, and foster a culture of integrity and accountability in the EB-5 program.

Who the Bill of Rights Matters To

The EB-5 Investor Bill of Rights is relevant to a wide range of stakeholders in the EB-5 ecosystem:

EB-5 investors: The Bill of Rights directly benefits EB-5 investors by outlining their rights, providing a framework for engaging with regional centers and developers, and helping them make informed decisions and protect their investments.

Regional centers and developers: Adopting the Bill of Rights can help regional centers and developers demonstrate their commitment to transparency, integrity, and investor protection, which can attract more investors, build trust, and enhance their reputation.

Immigration attorneys and advisors: The Bill of Rights serves as a valuable resource for immigration attorneys and advisors who guide investors through the EB-5 process, providing a clear set of expectations and rights they can use to advise their clients and ensure fair treatment.

EB-5 industry organizations: Industry groups and associations can use the Bill of Rights as a model for promoting best practices and self-regulation in the EB-5 industry, contributing to a more transparent, accountable, and investor-friendly program.

Policymakers and regulators: The Bill of Rights can inform policymakers and regulators as they consider reforms and improvements to the EB-5 program, highlighting the importance of investor protections and providing a framework for enhancing the program’s integrity and effectiveness.

The EB-5 Investor Bill of Rights highlights the fundamental rights we believe every regional center should guarantee to their investors. At EB5AN, we are committed to upholding these rights. If a regional center fails to respect any of the rights outlined here, it may be a sign of a lack of transparency, and you might want to consider exploring other regional centers and projects.

For more information about the EB-5 immigration process and secure investment opportunities, book a free consultation with EB5AN.