EB-5 Subscription Process
Interested investors received comprehensive offering materials that described in detail the U.S. Immigrant Investor Program and the Grand Canyon Regional Center. Also included were one or more proposed qualifying investments recommended by Grand Canyon Regional Center and the General Partner. Investors who selected a qualifying investment were required to execute an EB-5 subscription agreement to a designated Grand Canyon Regional Center limited partnership and deposit a capital investment in the amount of $500,000 with the escrow agent for the fund. The General Partner Gave priority to qualifying investors in the order that their respective capital investments were received. Capital investments were returned in the event of an over-subscription.
Adherence to this process by the Grand Canyon Regional Center resulted in the successful completion of two Funds, one for $21,000,000 and the second for $11,000,000. Both Funds were oversubscribed.
Accredited Investor Requirements
In the U.S. an individual is considered to be an accredited investor if he or she has a net worth of at least US$1-million or has made at least US$200,000 each year for the last two years ($300,000 with spouse if married) and has the expectation to make the same amount in the current year. Investment amounts will be released to the designated limited partnership upon the approval of an investor’s immigration application or to the investor in the event an investor’s immigration application is denied. Qualifying investors currently in the U.S. on a non-immigrant visa need to be an accredited investor. An accredited investor is a term defined by various security laws that describe investors permitted to invest in certain types of higher-risk investments, limited partnerships, hedge funds, and angel investor networks.