Setup costs of an EB-5 Project

The cost of operating a regional center and its associated financial structure costs are far from a one-fits-all model; every regional center’s financial structure and operation will differ widely. Key financial considerations should be taken into account to develop a cost estimate for RC operations and commercial enterprise management. 

There are two main costs which should be anticipated by the team hosting an EB-5 offering: the setup and ongoing costs, both of which differ between RC and direct offerings. Direct projects usually incur less setup costs because of the small team required and less legal hoops to jump through. RCs, on the other hand, require more studies, documentation, and a larger team to assist in the management procedures. 

Ongoing costs include marketing, investor returns, escrow fees, etc.incurred by the business or regional center managing the EB-5 escrow funds. Usually these costs are paid annually and fluctuate depending on the circumstances. Marketing fees would most likely be the highest costs an investment issuer can anticipate, which will be required to solicit the targeted amount of investment. Marketing materials, labor cost from the RC teams, and fees levied by third parties, are easily subsidized by the administrative fee paid by the investor to the RC.

Cost Breakdown

Here is a rough estimate of the possible costs incurred: