The EB-5 Immigrant Investor Program (the “EB-5 Program”) administered by the U.S. Citizenship and Immigration Service (USCIS) has been a significant source of capital for various real estate and other development projects throughout the United States. Because capital contributed by foreign nationals under the EB-5 Program typically takes the form of an investment in a limited partnership, the sale of these interests can have securities law implications. Not surprisingly, the SEC has begun to look at some of these issues. This Alert will discuss the broker-dealer registration issues presented by projects that use the EB-5 Program.
The EB-5 Program offers visas allowing residence in the United States to qualified immigrants who make an investment of at least $1,000,000 (or at least $500,000 for investments made in a “Targeted Employment Area”) in a new commercial enterprise that will create full-time jobs for at least ten qualified individuals, or maintain that number of existing employees in a “troubled business.” Investments in EB-5 projects most often are made through “regional centers,” which are economic entities approved by the USCIS to oversee raising funds from foreign investors and creating jobs through the U.S. development project.
Please see full alert below for more information.
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