Investment Facts

HIRC sets up a Limited Partnership for each individual project.

A limited partnership is a business organization with one or more general partners, who manage the business and assume legal debts and obligations; and one or more limited partners, who are liable only to the extent of their investments. Limited partners also enjoy rights to the partnership's cash flow, but are not liable for company obligations.

HIRC, serving as the general partner, helps protect the limited partnership’s investment.

The USCIS requires that some financial risk be involved so HIRC cannot guarantee the return. HIRC minimizes the amount of risk by making sure that the investment is properly collateralized and that the partnership is in strong financial standing. HIRC partners recommend investment opportunities to a EB-5 investor only after an extensive financial and project review. All limited partners will receive semi-annual reports with financial and partnership information. A limited partner can contact the general partner to request any partnership information.

There is some level of risk as with any investment.

There are specific risk factors for each limited partnership, which are included in the offering materials for the limited partnership. Risk factors differ for each partnership but general risks include economic conditions, failure to meet job requirements, and denied immigration status under the USCIS EB-5 Immigrant Visa Program. 

Each EB-5 investment must NOT contain a personal guarantee or recourse to the Regional Center or general partners.

U.S. law requires an at-risk investment without guarantees or redemption rights. The USCIS mandates that all EB-5 investments carry financial risks, but we devote our best efforts to minimizing the amount of risk. It is recommended that investors thoroughly review the offering materials before investing. A limited partner can contact the general partner to request any partnership information at any time.

An escrow account is setup to protect each immigrant’s investment.

An escrow bank account is a legal, interest-bearing account established in a banking corporation that meets all the legal requirements to operate in the State of California. This type of account is commonly used in the sales of real estate, business, and personal property. After the funds are wired into the escrow bank account, the funds continue to belong to the investor. No money will be released from the escrow bank account to the project until the investor’s I-526 Petition is approved by the USCIS.

Investments are  combined or "pooled" through limited partnerships.

The regulations specifically allow for pooling of funds by several investors to establish a limited partnership sufficient to qualify all participating investors. The only requirement is that each investor individually must qualify for the minimum at-risk capital requirement and new job creation requirement.

If the I-526 petition is denied, HIRC will refund your investment back in full.

The full investment amount will be returned from the secure escrow account in the event of denial.

Each project has a clear exit strategy that gives investor choices.

The exit strategy process is fairly uncomplicated. Consistent with the Limited Partnership agreement, shortly before the end of your investment period you will be sent a letter in which you will be provided the opportunity to approve another, non-EB-5 investment, or to receive your share of the realization proceeds.

An investor will need an immigration attorney to submit an I-526 petition.

We highly recommend that an investor obtain legal services for their immigration petition submission. The narrative and documentation needed for the petition is extensive and an attorney can assist with the petition, consulate interview and visa processing. Please note that legal fees are not included in the subscription/administrative fee expenses.

USCIS requires certain information and documentation before issuing an approval.

Your attorney will discuss the required documents and information in detail with you. However, please note that an investor must provide sufficient documentation of how his or her investment capital was earned or acquired. An investor’s independent declarations are not enough to satisfy USCIS requirements for proof of lawful source of funds. Independent evidentiary proof must support all declarations.  Evidence may include, but need not be limited to bank statements, stock certificates, and any loan or mortgage documents, promissory notes, security agreements or other evidence of borrowing which is secured by assets of the applicant.

THE USCIS requires that the immigrant's investment for the EB-5 visa be "lawfully gained".

Under USCIS regulations, the investor must demonstrate that their assets were gained in a lawful manner. This requires the investor to prove their investment funds were obtained through lawful business, salary, investments, property sales, inheritance, gift, loan, or other lawful means.

HIRC requires an investor to reveal where and how they received their assets in the amount of at least U.S. $500,000 that are used for qualifying for the program. This may be accomplished through certificates by the investor's licensed accountants, lawyers, court records, salary statements, tax statements, real estate documents and the like.

The following are the general obligations of the investor to participate in the investment:

The investor must be "active" in the management of the investment by engaging in the management of the new commercial enterprise, either through day-to-day managerial control or through policy formation. However, the law does specifically allow that an investor will qualify as a "limited partner" as defined in the Revised Uniform Limited Partnership Act.

Each project meets all the regulation requirements by enrolling the investor in the investment as a limited partner.

This role allows the investor to continue to engage in his or her own business without needing to participate in the day-to-day management operations. However, the limited partner is required to participate in the formation of policy activities for the partnership.  Most importantly, the limited partner, like the corporate shareholder, is only liable to the enterprise to the extent of the agreed-upon investment. HIRC uses this business structure to protect the investor.

Each EB-5 immigrant must qualify as an accredited investor in order to apply for visa.

An accredited investor is a term defined by various security laws that describes investors permitted to invest in certain types of higher risk investments, limited partnerships, hedge funds and angel investor networks. In the U.S. an individual is considered to be an accredited investor if he or she has a net worth of at least $1 million U.S. dollars (excluding the primary residence) or has made at least $200,000 U.S. dollars each year for the last two years ($300,000 with spouse if married) and has the expectation to make the same amount in the current year. If an EB-5 investor is currently residing in the US on a non-immigrant visa, in order to apply for the fund the immigrant must prove to be an accredited investor. The $500,000 US dollars that will be used for the investment can be counted towards the requirement of $1 million U.S. dollars in assets.

There is a difference between "conditional" and "unconditional" green cards.

Under the regulations, an investor who is approved for the EB-5 immigrant visa receives a "conditional" green card, which is valid for a two year period. An "unconditional" or permanent green card has no expiration date, otherwise the two cards offer the same rights and privileges.

The EB-5 investor is not the only one to receive the permanent residency ("green card").

The investor, spouse and any unmarried children under the age of 21 at the time of the I-526 petition will receive a green card. It is possible for adopted children to be included in the family.