The best EB-5 regional center projects stand up to scrutiny. Our independent analysis is just what potential investors need to make an informed decision — for the best chance of getting a Green Card and their money back.
USCIS oversees the program, its policies, as well as the compliance of EB-5 investors, regional centers, new commercial enterprises, and job creating entities.
Every year, a regional center must submit a Form I-924A to show their job creation activities as well as other proof of eligibility for the program. If a regional centre does not submit this form or properly proves its job creation, it can receive a Notice of Intent to Terminate (NOIT). This can lead to that regional center losing its designation in the program.
A regional center is an organization approved and regulated by the U.S. Citizenship and Immigration Services (USCIS) to promote economic growth in a specified region.
A regional center allows a New Commercial Enterprise (NCE) in the U.S. to pool together the capital from many investors into one project. An NCE can be a public or private entity or a combination of both.
Inspired by the immigrant investor programs of other countries, Congress established the Regional Center program, then known as the Immigrant Investor Pilot Program, in 1992. This was two years after Congress established the EB5 visa program in 1990.
Twenty years later, in 2012, Congress removed “pilot” from the program name and reauthorized the program through till 2015. The Regional Center Program has since been reauthorized many times for different lengths of time.
USCIS oversees the program, its policies, as well as the compliance of EB-5 investors, regional centers, new commercial enterprises, and job creating entities.
Every year, a regional center must submit a Form I-924A to show their job creation activities as well as other proof of eligibility for the program. If a regional centre does not submit this form or properly proves its job creation, it can receive a Notice of Intent to Terminate (NOIT). This can lead to that regional center losing its designation in the program.
A regional center investment allows investors to passively invest through a limited partnership or limited liability company. For an EB-5 applicant not interested in running a business, this is a significant advantage.
Regional centers, by virtue of investor capital pooling, also have a wider range of projects they can support compared with the relatively limited scope of direct investment options. Direct investments are typically limited to investments like franchises, hotels, and retail stores.
Currently, over 95% of EB-5 investments are made in a regional center project.
While the Regional Center Program is one way to acquire an EB-5 visa, direct investment is another. There are several reasons why investors may find the regional center model makes the EB-5 process easier.
A direct investment usually features one investor per project and the investor must act in a managerial or advisory capacity for that business — being involved in decision-making with an EB-5 business plan. In general, an investor must be actively involved in a direct investment.
Regional center investments involve many investors who purchase equity stakes in an investment fund. That fund then purchases equity in the job creating entity (the equity model) or loans capital to the job creating entity (the loan model).
A regional center investment allows investors to passively invest through a limited partnership or limited liability company. For an EB-5 applicant not interested in running a business, this is a significant advantage.
Regional centers, by virtue of investor capital pooling, also have a wider range of projects they can support compared with the relatively limited scope of direct investment options. Direct investments are typically limited to investments like franchises, hotels, and retail stores.
Currently, over 95% of EB-5 investments are made in a regional center project.
We at EB5 Diligence fully agree with this statement. It is the reason we exist: to give potential investors all the information and independent EB-5 due diligence they need for any regional center projects they are considering.
USCIS, as of June 4, 2020, has approved 721 regional centers.
Investors should be mindful of the limitations of USCIS approval for an EB-5 regional center. Such approval does not indicate USCIS endorsement of that regional center or its EB-5 compliance; nor is it a guarantee of that regional center’s compliance with securities laws. It also does not minimize any investor risk.
“Potential investors are encouraged to seek professional advice when making any investment decisions.”
— U.S. Citizenship and Immigration Services
We at EB5 Diligence fully agree with this statement. It is the reason we exist: to give potential investors all the information and independent EB-5 due diligence they need for any regional center projects they are considering.
When the EB-5 program was originally created in 1990 there was only the direct investment option. Today the Regional Center Program accounts for 95% of all EB-5 project investment.
The program’s activity and impact have increased by a huge margin, even in the last decade. In 2008, the program garnered $321 billion in investments; while in 2014 to 2015, that number skyrocketed to $11 billion. During 2014-15, the capital infusion from the program represented 2% of total foreign direct investment in the U.S.
The impact made by regional centers touches many necessary and important industries and sectors including health care, education, renewable energy sources, senior living facilities, transportation, affordable housing, hotels, research facilities, architectural and engineering-related services, wholesale trade, and more.
When the EB-5 program was originally created in 1990 there was only the direct investment option. Today the Regional Center Program accounts for 95% of all EB-5 project investment.
