The EB-5 Immigrant Investor Program grants permanent residency to foreign investors that create 10 jobs through a minimum investment of $800,000. Therefore, the most important thing to show the USCIS to get a Green Card is that investment funds are indeed spent on job creation expenses.
In the previous EB-5 program (pre-March 2022), there were no controls put in place by the Federal government to ensure that EB-5 funds were being spent on job creating expenses. Investors had to rely entirely on the good faith and experience of the Regional Centers and developers. Like any industry, there were bad and/or unscrupulous actors that took advantage of the lack of oversight. These malicious parties unfortunately tainted the industry and image of the program in the eyes of would-be participants. This motivated the United States Congress to pass the monumental EB-5 Reform and Integrity Act of 2022 (RIA) which provided many new investor protections, advantages, and a renewed sense of vigor for the EB-5 industry.
One of the new requirements for EB-5 Regional Centers that protects investors is that of oversight. Now, Regional Centers are required to engage an unaffiliated 3rd-party financial servicer that qualifies as a fund administrator to ensure that EB-5 investments are exclusively spent on job-creating expenses. This is a welcome update as it provides investors with reassurance that investments are being properly spent and will therefore likely lead to immigration success.
The fund administrator is required to be a designated a co-signatory on the bank account for the project and must approve all advances of EB-5 funds made to the project. The administrator also prepares and distributes financial statements to EB-5 investors relating to the project’s use of EB-5 funds, and job creation.
Houston EB5 has engaged Proxy Wealth Advisors, LLC (Proxy Financial) as the fund administrator for our rural EB-5 project, The Frederick. Proxy Financial provides a transparent view to investors regarding the project’s progress and EB-5 expenditures. Proxy Financial also has a live job-creation counter that is updated in real time to show how many jobs have been created through EB-5 expenditures. We share this data along with each investor’s immigration and investment information through our online investor portal.
We pride ourselves on being a vertically-integrated Regional Center and Developer. We provide an unmatched level of transparency in our projects as investors can directly communicate with the principals regarding updates, progress, and any issues that may arise. Furthermore, we always invest alongside our clients, so we can only succeed when they do.
If you are interested in learning more about the EB-5 program and how we can assist you, please contact us via email at info@houstoneb5.com or by Phone/WhatsApp at +1 281 565 1067. Alternatively, you can book a free consultation at your convenience through our Calendly.
