Ten review criteria
| Criterion | What we require | Common red flag |
|---|---|---|
| Regional center record | Past projects repaid in full, with a verifiable record | Selling on age, total capital raised or "approval rates" alone |
| I-956F status | Approved, or a clear account of where review stands and the risk | Avoiding the question, or "approval is coming soon" |
| TEA designation | Verifiable data consistent with the I-956F | A high-unemployment area stitched from many tracts, with no explanation |
| Capital stack | EB-5 secured or clearly prioritized; meaningful developer equity | EB-5 funds most of the cost; little developer money at risk |
| Other capital in place | Senior loan and equity signed or funded | Other financing still "in discussion" |
| Completion guarantee | A guarantor with the means to honor it | A shell guarantor, or financials withheld |
| Job creation buffer | Conservative assumptions, well above the minimum | Barely above 10 jobs per investor |
| Fund controls | Segregated EB-5 account, third-party administrator or annual audit | Funds usable without conditions before I-526E approval |
| Exit terms | Maturity, extension limits and repayment source in the documents | Open-ended extensions or an unclear repayment source |
| Fees and disclosure | All fees, related-party dealings and commissions disclosed | Commissions withheld, or fees scattered across documents |
When a project fails any criterion, the memo explains why, and we generally advise against investing.
Questions for any issuer
Whether or not you invest through us, you can use these questions to test any EB-5 project:
- Has the project's I-956F been approved? Can I see the approval notice?
- How many of the regional center's past projects have repaid in full? How many investors have had their I-829 approved?
- Where does EB-5 capital rank in the capital stack? What security does it have?
- Are the senior loan and developer equity in place? What's the evidence?
- Who provides the completion guarantee? What do the guarantor's latest financials show?
- How many jobs per investor are projected, and on what assumptions?
- Where is my money held before I-526E approval, and when can it be released?
- When does the investment mature? How long can the issuer extend, and what is the return during an extension?
- What commission does any promoter or intermediary receive from my investment, and who pays it?
- If the project defaults, what rights do investors have, and who exercises them?
Beyond the criteria: is it right for you
A project that passes every criterion isn't right for every family. We also consider:
- Country-of-birth backlogs and whether you need a set-aside category
- Your children's ages and CSPA timing
- Whether you're in the U.S. and plan to file concurrently
- How long you can have capital locked up, and your liquidity needs
- How hard your source of funds will be to document, and your funding timeline