EB-5 investments are private placement offerings exempt from SEC registration. Although EB-5 rules has no accreditation requirement, U.S. securities laws require that the EB-5 investor be an accredited investor to participate in EB-5 investments.
What is an Accredited Investor?
An accredited investor is a person that can participate in investments involving unregistered securities, such as private placements, structured products, and private equity or hedge funds, etc.
Typically, EB-5 investors may be accredited if they satisfy either the requirements of net worth or earned income.
Do you meet one or more of the following requirements?
Net Worth Test
A person qualifies as an accredited investor if he or she has a net worth exceeding $1 million, either individually or jointly with a spouse, excluding the primary residence.
Income Test
A person must demonstrate an annual income of $200,000, or $300,000 for joint income, for the last two years with expectation of earning the same or higher income. An individual must have earned income above the thresholds either alone or with a spouse over the last three years.