The EB-5 program was introduced in 1990 as a pathway for foreign nationals to obtain U.S. permanent resident status in exchange for an investment in the U.S. economy. Under this program, EB-5 investors can directly invest in a new commercial enterprise or through an EB-5 regional center.
An EB-5 regional center is a public or private economic unit in the U.S. involved with economic growth. Regional centers pool EB-5 funds from multiple foreign investors and invest them in large development projects. The United States Citizenship and Immigration Services (USCIS) designates regional centers for participation in the EB-5 program.
However, investing through a regional center does not guarantee that USCIS will approve your EB-5 petition. The regional center and EB-5 project you choose must meet all USCIS requirements and create the required number of jobs for your EB-5 petition to be successful. This is why it’s important to understand the role of regional centers in the EB-5 program and how to select one.
In this article, we’ll discuss the role of a regional center in your EB-5 journey, the support and services to expect from a regional center, and key factors to consider when choosing one.
Why Choose a Regional Center EB-5 Project
Support and Services to Expect From a Regional Center
Importance of Selecting the Right Regional Center
Key Factors to Consider When Choosing a Regional Center
EB5AN Offers Low-Risk Regional Center Projects
Why Choose a Regional Center EB-5 Project
To qualify for the EB-5 program, interested foreign nationals must invest at least $1,050,000 or $800,000 (for targeted employment areas) in a new commercial enterprise (NCE). Then, for the investor to meet the program’s requirements, the NCE must use that investor’s funds to create jobs for at least 10 qualified American workers.
EB-5 applicants can invest directly in a project or through a USCIS-designated regional center. For direct investments, the EB-5 investor can start a new business, invest in an existing one, or buy a troubled one. However, no matter which option they choose, they must be fully involved in the operation of the NCE and bear sole risk if the business fails.
Most EB-5 investors prefer the regional center route because it offers more flexibility. They don’t have to be involved in the day-to-day operations of the NCE, meaning it’s easier to have a job that’s unrelated to your EB-5 investment.
It’s also easier to meet the job creation requirement by investing through a regional center. In direct investments, you can only count jobs directly created by the NCE, but regional center projects can count direct, indirect, and induced job creation.
Another reason EB-5 investors favor regional center investment is that most regional center projects are located within targeted employment areas. This means investors will benefit from a lower investment threshold ($800,000) and set-aside visa quotas. Thanks to the EB-5 Reform and Integrity Act of 2022 (RIA), EB-5 rural TEA investors also enjoy priority processing.
These are some of the reasons why regional center investments currently account for over 95% of all approved EB-5 Green Cards since the inception of the EB-5 program.
Support and Services to Expect From a Regional Center
Regional centers create NCEs that EB-5 investors can subscribe to as limited partners. They pool funds from multiple EB-5 investors and carefully deploy them in an approved EB-5 project. As of August 2024, there are 712 approved regional centers.
Regional centers also work with EB-5 investors to facilitate their legal immigration process. When you consult an EB-5 regional center, they’ll evaluate your situation and offer you a range of approved EB-5 projects from accredited developers to select from. Although regional centers generally conduct EB-5 project due diligence, investors should perform due diligence of their own to make a more informed decision.
Once you select an EB-5 project and invest your funds, the regional center will provide the relevant investment documentation for filing your I-526E petition. This includes a private placement memorandum (PPM), evidence of TEA designation, proof of investment, evidence of job creation, etc. They’ll also help confirm your source of funds documentation.
After filing your EB-5 petition, the regional center will provide you with regular reports on the EB-5 project and your investment status.
Importance of Selecting the Right Regional Center
The regional center you choose for your EB-5 process plays a vital role in determining the success of your immigration and the safety of your investment. Therefore, conducting due diligence is essential before choosing a regional center to work with.
Before the RIA, many regional centers often did not disclose the full details of their EB-5 projects to investors, prioritizing their profits over investors’ immigration and financial goals. To help correct this issue, the RIA introduced significant changes to the EB-5 program to promote reporting and transparency.
Still, the possibility of fraud or mismanagement can’t be completely ruled out. So it’s essential to thoroughly research a regional center before committing to working with them to avoid losing your funds and your opportunity to obtain a Green Card.
Key Factors to Consider When Choosing a Regional Center
As mentioned above, choosing the right regional center for your EB-5 journey requires thorough due diligence. Below are some critical factors to consider when selecting a regional center.
USCIS Compliance
USCIS designates regional centers and performs regular audits to ensure they follow the required guidelines. In other words, all regional centers must maintain compliance with USCIS regulations to remain operational. You should ensure that the regional center you choose has a valid designation from USCIS. You can request their Form I-956 approval notice to verify this.
Also, check whether they have received a termination notice from USCIS in the past. This is important because if the regional center gets terminated or debarred during your EB-5 process, your Green Card process will be significantly delayed.
History and Experience Level
A regional center’s history and experience level can help you predict the outcome of your EB-5 petition. Check how long the regional center has been in operation and how many EB-5 projects they’ve completed. An older regional center will typically have more experience handling different EB-5 scenarios.
You should also check the professional backgrounds of the regional center management team and their track record. In addition to their time in the EB-5 space, those with relevant experience in business finance, real estate development, immigration law, or securities offerings are likely to understand the nuances of the EB-5 process better.
Track Record
For a successful EB-5 process, assessing a regional center’s track record is also important. In particular, you should examine their project success rate, investor I-526E and I-829 approval rates, and investment payouts. Also check their project selection process and investment strategies to ensure they align with your immigration and financial goals.
You can also see whether their current EB-5 offerings have approved I-526E petitions. Approved I-526E and I-829 petitions show that the project is viable. Conversely, look out for I-526E and I-829 denials and their causes. The presence of petition denials may indicate that the regional center has previously breached USCIS regulations.
Communication and Transparency
When assessing a regional center, it is important to consider their responsiveness and transparency level. How quickly do they respond to inquiries and provide the needed information? Were they willing to let you speak directly to their managing partners, or did you have to communicate through intermediaries? Were they reluctant to provide the necessary documents for due diligence checks?
A good regional center should provide investors with detailed financial and project development reports. You should additionally be able to reach out to key personnel for necessary information.
If you struggle with assessing these factors, you can learn about the experiences of past investors with the regional center.
EB5AN Offers Low-Risk Regional Center Projects
For many investors, a regional center plays a vital role in the EB-5 process. Your choice of regional center will greatly influence the success of your EB-5 petition, so selecting the right regional center is crucial to avoid losing your money and your chance of obtaining a U.S. Green Card.
This is where EB5AN comes in. In over 10 years of operation, we’ve helped over 2,300 families successfully relocate to the U.S. as lawful permanent residents. We offer our clients first-rate, low-risk regional center projects with a 100% USCIS approval rate to date.
To learn more about the EB-5 process and our EB-5 regional center projects, schedule a one-on-one call with our expert team today.
