Due Diligence Questions for Regional Centers
1. How many investors have had their I-526s approved?
2. How many denied?
3. What is the intake procedure (ex: questionnaire, then subscription agreement, then wire)?
4. When do you require the full investment?
5. What are the administrative fees?
6. Do you offer referral fees? If so, how much and when is it paid?
7. Where an agent declines referral fees, will you forward the referral fee directly to the investor or any other party the referring agent designates?
8. Is the investment put into an escrow?
9. If yes, what are the conditions for release?
10. What happens if the EB-5 petition is denied? Or if the immigrant visa application/adjustment is denied? Or if the I-829 is denied?
11. How long is the investor obligated to keep my investment in?
12. “Exit strategy”: how does the investor get the principal out and when?
13. What documents will you provide for the I-829?
14. How many I-829s have been filed through your Regional Center?
15. What’s your mechanism for ensuring that the required number of jobs is created?
16. What economic methodology do you use to calculate total impacts?
17. What are the investor’s obligations after committing my investment?
18. What is the basic business model (ex: loan to businesses; equity for acquiring property)
19. What is the return on investment? How often is it paid?
20. Do you allow investors to choose their EB-5 counsel, or do you have an exclusive arrangement with one or more firms?