EB-5 Regional Center Due Diligence for Investors Checklist

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  1. Investors Due Diligence regarding EB-5 Project
    1. What is the projected return on investment? (in Prospectus)
    2. Obtain documentation of returns on past EB-5 investment projects.
    3. How many projects has EB-5 company completed?
    4. May EB-5 applicant need to invest additional money over and above $900,000 at a later date?
    5. Does EB-5 project have U.S. investors as well as immigrant investors?
    6. Does applicant get interest on money until it is spent on EB-5 project?
    7. When is the return paid? Monthly, yearly, end of project.
    8. How is the return determined?
    9. In Subscription Agreement or Purchase Contract, is there a provision for return of money if I-526 denied? How much is refunded?
    10. Does the investor have to make any deposit or pay any fee for the offering materials?
    11. What is the amount required to be paid by the investor?
    12. Does the Regional Center provide regular reporting of the status of the investment to the investors? At what intervals?
    13. Does a referring attorney get any fee from the Regional Center? How much?
    14. Has any Regional Center project lost money? Been in default? Investors lost money? Any law suit?
  2. Investors Immigration Due Diligence
    1. How many I-526 approvals?
    2. How many I-526 denials? Reasons?
    3. How many Conditional Green Card approvals?
    4. How many Conditional Green Card denials? Reasons?
    5. How many Removal of Conditions approvals?
    6. How many Removal of Conditions denials? Reasons?
  3. Investors Due Diligence of Regional Center. Will Regional Center company and principals be in business in the future for Removal of Conditions?
    1. Obtain Bank reference of EB-5 general partner and/or principals
    2. Obtain Dunn and Bradstreet on general partners and/or principals.
    3. Any past law suits? (Regional Center, general partners or principals)
    4. Any past criminal convictions? (general partners or principals)
    5. When was Regional Center established?
    6. How long has EB-5 company been doing business? Any previous business?
    7. When can the investment be sold? When can client get money ($900,000) back? How many investors have received return of investment?
    8. How is the amount determined?
    9. How many years of experience does the general partner or principal in the investment project have in working with immigrant investor programs?
    10. What precautions are taken to monitor job creation? What steps are taken if the requisite job creation has not occurred?

For questions concerning U.S. tax implications, please contact a qualified, international tax attorney.

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