Glossary of EB5 Visa Terms – Pay attention to Financial Terms
A typical EB5 Investor would run into most of the terms listed below if not all as part of the EB5 project due diligence process.
- The Regional Center – An EB-5 regional center is an economic unit, public or private, in the United States that is involved with promoting economic growth. USCIS designates regional centers for participation in the Immigrant Investor Program.
- The EB-5 Immigrant Investor (or Accredited Investor) – A person who is investing the money on a Project for the propose of receiving U.S. Green Card via EB5 Immigrant Investor Program.
As you are going through these terms, spend time to learn and understand these terms, especially the Financial Terms.
For common man, we have to google to know these terms. But, in the grand scheme of things, as Investors, you are looking to achieve the following:
- Invest
- Get Green Card
- Remove Conditions
- Get the Investment back
So, work with a competent attorney and qualified advisor who can help you cut through the complex noise, have given their point of view about the pros and cons of each project.
EB5 Professionals:
- Immigration Attorney
- Economists
- Business plan writers
- Securities Attorneys
- Regional Center Founders
- EB5 Accountants
- Due Diligence Specialist
- EB5 Agents (Broker-Dealers)
- Tax Attorneys
Documents from theEB5 Project:
- Project’s Business Plan
- Economic Impact Report
- Regional Center Designation letter (I-924 approval) issued by USCIS
- Private Placement Memorandum (PPM)
- Financials Forecast and Results
- Project Marketing Brochures
Immigration and USCIS
- EB5 – Employment-Based Fifth Category
- California Service Center
- Vermont Service Center
- Biometrics
- I-526 – Immigrant Petition by Alien Entrepreneur
- I-485 – Application to Register Permanent Residence or to Adjust Status
- Medical Exam
- Consular Processing
- Department of State
- Conditional Permanent Residency
- I-829 – Petition by Entrepreneur to Remove Conditions on Permanent Resident Status
- Green Card
- Non-Immigrant Visas – H1B Visa, F1, etc
- I-924 Application for Regional Center Designation
- NVC – National Visa Center
- Premium Processing
- TEA – Targeted Employment Area
- Source of Funds
- Retrogression
Financial Terms
- Profit and Loss (P&L)
- Planned Investment
- Capitalized Cost
- Capital Structure of the Project
- Loan
- Equity
- Senior Loans
- Bridge Financing
- First Mortgage
- Second Mortgage
- ReFinance
- Sale of Property
- Repayment
- Interest Rates
- Equity
- EB5 Financing
- Investment Capital
- Source of Capital
EB5 Visa Project
- New Commercial Enterprise (“NCE”) – the entity formed by the Regional Center that serves as the investment vehicle into which an immigrant contributes his required equity capital.
- Job-Creating Entity (“JCE”) – the entity that owns the project that will create the jobs, which also ultimately receives the EB-5 proceeds as a debt or equity investment from the NCE
- The Project Developer – Self-Explanatory
- Managerial Role
- Amount of Investment
- Employment Creation
- Economic Model
Explanations for these terms would be added later.
EB5 Visa Series
- EB5 Visa Process for US Green Card – I-526, I-485, and I-829
- Glossary of EB5 Visa Terms
- 20 FAQ’s About EB5 Visa for H1B Visa Holders
- Source fo EB5 Visa Funds for H1B & H4 Visa Holders
- Can $500,000 Investment be Any Type of EB5 Projects?
- EB5 Investment – $900,000 or 1.8 Million
- EB5 Visa Investments: Direct, Direct Pooled vs Regional Center
- EB5 Visa – I526 Denied Due to Source of Funds – Example
- 8.4 Years for EB5 India vs 50 Years for EB2/EB3 India