At KCI Capital, we are committed to providing the most transparent, honest, and successful business model possible. We are first and foremost a company about people: our investors, our employees, our advisors, our strategic alliances and the men and women with whom we choose to do business.
We feel that we should offer you, as the investor, the maximum amount of information possible about the way we conduct business at KCI Capital, and share with you the ways that distinguish our company when comparing against other operators utilizing the Immigrant Investor Visa Program.
Therefore, we have compiled this Frequently Asked Questions section to address some very common issues, explain the hazards of both the global economic markets and Regional Centers, and do our best to show you how KCI is working fully on your behalf.
Q: What is the minimum amount of investment required?
A: For investments in areas other than “targeted employment areas,” the minimum amount of investment is $1 million. Investments in “targeted employment areas,” can qualify with a minimum of $500,000. KCI Capital has project opportunities available at both investment levels. [break]
Q: What is a “targeted employment area?”
A: A targeted employment area is a rural area or a geographical area that has experienced unemployment at a rate of at least 150% of the national average rate. Individual states are authorized to designate geographical areas within the state that qualify as targeted employment areas.
Q: May two or more investors qualify for immigration based upon a pooled investment in a single business?
A: There is no limit to the number of investors who may qualify for immigration based upon an investment in a single business. However, each investor must invest the required minimum amount, and the number of jobs created must be equal to ten times the number of qualifying foreign investors. For example, if five investors each invest $1 million in a business, they can each qualify for immigration if 50 jobs are created in the business.
Q: Regional Centers are approved by the United States government, does that mean the United States government approves, evaluates, or backs the Regional Center, its projects or direct EB-5 investments?
A: No…Absolutely not. Many regional centers have been accused of using “regional center approval” by the United States Citizenship and Immigration Services (USCIS) as either explicit or implicit proof of government evaluation, approval, or in some cases, government backing of their regional center or their investment projects. The regional center application clears a company for operation on basic structure: is the company a legal entity? Does the company have an investment project? Does the investment project, on its face, look legitimate and have the potential to meet USCIS requirements? Regional Center status is not a guarantee, backing, or a government approval.
Q: Is my investment guaranteed?
A: No. The EB-5 regulations require all investor capital must be placed “at-risk” in order to qualify for a visa. In fact, at several adjudications of an EB-5 immigrant’s petition to remove restrictions (grant a permanent green card), such guarantee deals, whether debt arrangements or otherwise, resulted in an immigrant losing his visa.
Q: Are in-country promoters or agents authorized under the EB-5 program?
A: Yes. In-country promoters or agents are the main way regional centers identify and reach potential investors. We caution you, however, to inquire into the nature of the relationship a promoter has with the regional center, whether they work for highest bidders or have sustained relationships, and whether what the promoter says and represents to you matches the truth about risks, laws, and EB-5 program requirements. At KCI Capital, we are very selective in who we choose to work with. We have clearly defined the parameters of the relationship with our in-country advisors (we do not work with “promoters”), and any advisor who works with KCI does not receive payment unless you, the investor, has been granted your I-526 visa. Because of safeguards KCI has in place, we only work with investors who meet our guidelines and can fulfill their obligations. Our advisors know that your I-526 success is tied to their financial success.
Do not hesitate to contact us directly, at any time in the process, to clarify what the in-country advisor has told to you, or to double-check the accuracy of what he/she has said.
Q: Once an investor places money into a project, and gains an I-526 provisional visa, is the permanent green card guaranteed?
A: No. Failure to sustain the capital investment and failure to produce the requisite number of U.S. jobs are the two main reasons I-829s are not approved.
At KCI Capital, we perform initial legal and business-case due diligence on all of our investment projects, and we only select projects that we believe have the best chance of success, for both the investor’s immigration petition and for the investor’s investment. While we cannot guarantee success in any investment, we can do our best to investigate and carefully select projects. Our success is tied to your success and the success of our projects. We are an intermediary, not the direct beneficiary of the investment funds.
Investors are always encouraged to perform their own due diligence, review our materials, travel to the United States to see the project sites, meet our team, and review the numbers.
Q: What else might prevent me from getting a permanent green card?
A: Some regional centers have inadvertently ruined their investor’s applications for permanent green cards by materially changing the investment projects without USCIS approval. It’s important that you select a regional center or direct investment EB-5 advisor that understands the law and knows the regulations.
At KCI Capital, we have a dedicated team that is current on changes to the laws and regulations for EB-5 visas, and we’ve done the work to make sure that once you’ve committed your money to a project, the rest is up to us. We are not just your investment manager; we are your ally in an immigration process that does not just end with your I-526 and funds being transferred. We stand beside the immigrant investor through the entire process and we build our reputation on YOUR success and the success of our investment projects.
Q: What agencies regulate the EB-5 program and what do they do to protect me from predatory schemes or negligent regional centers?
A: The EB-5 program falls under two agencies: the USCIS, which is concerned primarily with ensuring that enough jobs are created with the requisite amount of at-risk investor funds; and the Securities and Exchange Commission (SEC), which is tasked with pursuing issues of fraud. The EB-5 program does not require investments to be registered as securities offerings, nor do regional centers have to make public filings of marketing, performance reports, or financial disclosures. The USCIS will soon begin disclosing data on ROI’s for investors and success rates for green cards for each regional center.
At KCI, we value integrity and transparency, so our investors know our fees, our in-country advisor fees, and the details and the economic analysis of our selected projects up front. We are committed to transparency and the proposed “wish-list” for transparency in the EB-5 program are deliverables KCI Capital already does, or plans to do once we have the data to share.
Q: In my home country, I have heard many rumors of investors being taken advantage of, fraud, and general warnings about the EB-5 program. Is this just a scam to steal foreigner’s money?
A: Not at all. The EB-5 program can issue up to 10,000 visas per year. The program experienced several problems in its first years, including the exclusion of U.S. companies from soliciting investments, and an isolated incident where early EB-5 immigrants lost their visas. The more you as an investor know about the potential pitfalls, the more confident we are that you will see the wisdom in choosing KCI.
Some EB-5 regional centers or direct investments can be risky to investors: businesses fail, businesses produce less jobs than projected, and there are some individuals who take advantage of the EB-5 program and investors. Overall statistics indicate about 54% of immigrants who are eligible to file their I-826 are granted a green card. The others may be waiting to file, may have returned home, or may have been rejected. Nevertheless, investors need to be careful about who they choose to work with.
A careful examination of the numbers reveals ways that you can find better success with KCI. Roughly 32% of EB-5 applicants are rejected because of documentation failures or unlawful funds–KCI and our advisors will make sure you come to the I-526 stage with full documentation, setting you up for success. KCI Capital can provide investment opportunities that are more likely to meet the job requirements because we choose projects that aren’t cutting it close; we choose projects that we believe have a higher probability of success; and we look for projects that our investors will make money with, not merely get them immigration status.
While permanent green cards are not a guarantee, KCI Capital goes above and beyond to give the investor the best chance for permanent resident status.
Q: Does KCI Capital have a substantial and competent network of partners and advisors to enure that, not only is the opportunity for securing permanent residence in the U.S. optimized under its business model, but the opportunity for participating in successful business projects optimized as well?
A: We are confident that we have assembled an unparalleled team with balanced and complimentary skill sets. This includes alliances with federally regulated and registered entities, law firms, consulting firms, and overseas partners. We believe that our network and project focus is perfectly balanced so that the immigrant investor receives the optimal attention and access to strategic investments where we are not too small of an operation to effectively implement our plans and models, but also not so large that inadequate attention and deal-sourcing becomes erratic and inappropriately focused.
KCI Capital has also established relationships with real estate developers, economic modeling experts, manufacturing concerns and investment management houses providing job-creation analysis, back-office accounting and reporting and project due diligence.
Q: Your F.A.Q.’s have not addressed my main concern, what should I do?
A: You should contact us! E-mail us, call us, or send us a letter– whatever works best for you. Our team is ready to field your uncovered question at any time!