Answers to common EB-5 visa investor questions

Posted by Rupy Cheema on April 26, 2021

Here are the questions we most frequently hear from investors:

What is a New Commercial Enterprise (NCE)?

Posted by Kurt Reuss on April 01, 2016

NCE is an acronym for 'New Commercial Enterprise' and the term is used in EB-5 to identify the entity, partnership or LLC that EB-5 petitioners will invest in, and the New Commercial Enterprise is a requirement of the US EB 5 program. This entity is often a different entity from the 'Job Creating Entity' (JCE) which the NCE makes an investment into on behalf of the investors, sometimes in the form of a loan from the NCE to the JCE and sometimes in the form of equity, whereby the NCE becomes an equity partner in the JCE.

There are no restrictions on the type of business investors or an NCE can invest in, as long as it is a new business enterprise or the investment is made into a failing business to save jobs, but in both cases the investment must create or save at least ten (10) jobs per investor.

Faced with an SEC Investigation? Form 1662 is a Great Checklist.

Posted by Kurt Reuss on January 23, 2015

SEC Investigation

An SEC investigation of an EB5 Regional Center or Issuer often starts with either formal service of a Subpoena for documents or a Preservation Notice from the SEC stating that you may have documents in which they might be interested. 

The Preservation Letter puts you on notice to maintain availability of the items listed. This will buy the SEC time to begin a more thorough investigation, which might then branch out to other associated parties.

How SEC Investigations Typically Start and Proceed

Posted by Kurt Reuss on January 22, 2015

Recently the SEC became focused on Regional Centers and Issuer activities related to the offer and sale of securities to foreign investors seeking EB-5 visas which have resulted in SEC investigations as well as a recent Investment Alert, jointly issued by the SEC and USCIS. The SEC's investigation of EB5 Regional Centers, Issuers and other EB-5 players is no different than any of other SEC investigation.