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The COVID-19 pandemic has had major impacts on people’s daily lives, the global economy, and the way businesses operate, but slowly but surely, people and businesses have begun to adapt and find ways to continue onward despite the circumstances. Many people have transitioned to working from home and consumers have started shopping online, which has led to a boom in e-commerce businesses. Some investors have noticed the shift in which industries are adapting and succeeding and are taking advantage of the opportunity.
Because of the boom in e-commerce and the decrease in demand for brick-and-mortar businesses, many EB-5 investors are questioning their next move. How can investors adapt and ensure a quality EB-5 investment despite the circumstances? A review of 2020 and a look at what successful investors have done can help shed some light on what steps EB-5 investors should take.
Adapting EB-5 Operations
Believe it or not, the COVID-19 pandemic hasn’t been all bad: it has also had some positive impacts on the EB-5 industry. But EB-5 investors are still not in the clear when it comes to the pandemic’s negative effects. The industries that have been hit hardest by the pandemic are the hospitality, tourism, and retail industries, all of which make up a sizeable amount of investment offerings from EB-5 regional centers.
The Ability to Adapt
Regional centers and EB-5 operators have had to make major changes to stay afloat during these troubling times. Regional centers and their EB-5 projects have to make sure their operations are compliant with government and public health mandates, in addition to trying to stay financially stable. The projects that have been able to weather the storm have done so by finding ways to shift their business model and earnings to the digital space.
The Shift Away from Brick-and-Mortar
As previously mentioned, the e-commerce industry has seen significant growth in 2020 due to the increase in online shopping and home delivery services. This has led many investors to shift their focus to the logistics and distribution business sectors. EB-5 regional centers are striving to make the necessary changes and adjustments so they can continue to connect investors with projects that give them the best chances of EB-5 success.
EB-5 Eligibility Requirements
The four main requirements that all EB-5 investors must satisfy to become eligible for a U.S. green card are as follows:
- EB-5 investors must meet the minimum investment requirement of $1.8 million, or $900,000 if the project is in a targeted employment area (TEA).
- The EB-5 investment capital must be invested in a new commercial enterprise (NCE) or a qualified distressed business that has been approved for the EB-5 program.
- The EB-5 investment must preserve or create a minimum of 10 full-time jobs for U.S. workers that remain viable for the entire two-year investment period.
- The EB5 investment capital must be lawfully sourced and remain “at risk” for the entirety of the investment period.
Many EB-5 investors have chosen to seek the counsel of experienced EB-5 professionals to ensure they receive the best guidance and advice possible to help them achieve their EB-5 immigration goals.
The Benefits of Choosing Experienced Partnerships
EB-5 regional centers work to ensure that they can align the right projects with the right clients, ensuring the project meets the investor’s goals and offers a level of security that the investor is comfortable with. For this reason, regional centers typically offer a wide variety of projects from many different industries, allowing investors to take advantage of market trends so they have the best chances of financial and immigration success.
EB5 Affiliate Network (EB5AN) is one example of a network of experienced industry professionals working to ensure the success of EB-5 investments. Investors who work with EB5AN can find projects that meet all of the EB-5 eligibility requirements without assuming any unnecessary risk. Even amidst the COVID-19 pandemic, EB5AN seeks out projects in high-demand sectors that are projected to continue growing, ensuring that the project will have no problem meeting all the necessary EB-5 requirements, such as the creation of 10 new full-time jobs for U.S. workers.
Any prospective investors planning an EB5 investment should reach out to EB5AN and discuss the ways that they can help foster a smooth EB-5 process. Using solid research and analyses, EB5AN can help make sure that the effects of the COVID-19 pandemic do not jeopardize any investor’s future in the United States.
