The Role of the Regional Center in Your EB-5 Journey

The EB-5 Immigrant Investor Program offers a unique opportunity for foreign nationals to acquire a green card when they make a qualifying investment. While investors can choose to directly invest in an independent new commercial enterprise (NCE), many prefer to go through an EB-5 regional center. Understanding the role of a regional center and an immigration attorney are key to making an informed decision about your investment and filling the necessary paperwork to pave the pathway to a U.S. Green Card.

What is an EB-5 Regional Center?

An EB-5 regional center is an organization approved by the U.S. Citizenship and Immigration Services (USCIS) that focuses on economic growth and job creation in specific geographic areas.  It is important to note that if a regional center or any of its projects is approved by the USCIS it does not mean that the government is assuming responsibility for that entity.

Regional centers pool funds from multiple investors and deploy them into large-scale development projects such as infrastructure, real estate, or other industries that promote U.S. economic development. Such investments are pooled in NCEs before they are deployed to projects under the auspices of the regional center.  By working through a regional center, investors do not have to be directly involved in the day-to-day operations of the project, making it a more flexible and passive investment option.

Why Choose a Regional Center EB-5 Project?

Investing through a regional center provides several advantages that can make the process smoother and more efficient.  It also often proves to be a more secure way of obtaining a green card by investment. 

Working with an Attorney

There are two major parts to getting an EB-5 green card – choosing the regional center and mapping the source and path of funds that you will invest in the regional center.  An attorney is not permitted to advice on the regional center investments unless he is a licensed financial advisor.  But the attorney is key to establish the eligibility of the regional center, your eligibility, and tracing the source and path of your funds. 

Attorneys prepare the initial I-526 petition, which when approved results in a green card for you, your spouse, and children below the age of 21 years.  These green cards are valid for two years.  Before the end of the 2-year period, the attorney will help you file an I-829 application to secure your permanent green card.  At the I-829 stage, among other things, we need to prove that you invested the whole amount for at least two years and that you/the regional center has created the requisite 10 jobs. 

Job Creation Flexibility

One of the key requirements of the EB-5 program is that investors must create at least 10 full-time jobs for U.S. workers. With direct investments, only jobs created directly within the investor’s business, count toward this requirement. This means that investors must be hands-on in managing their business and ensure direct job creation.

However, regional center investments offer greater flexibility. Not only do direct jobs count, but regional center projects can also count indirect and induced jobs. Indirect jobs are those created in supporting industries, such as construction workers for a development project. Induced jobs are those created from the spending power of workers employed by the project. This broadens the opportunity for investors to meet the job creation requirement without direct involvement in every aspect of the business.

Lower Investment Threshold in Certain Areas or Projects

An investor must invest US$ 1,05,000 in a direct business to secure a green card.  If the investment is in a rural or high unemployment area it is reduced to US$ 800,000.  The EB-5 Reform and Integrity Act (RIA) of 2022 sets aside 32% of the annual EB-5 visa allocation for three specific categories, which are also processed on a priority basis.  These are as follows:

1. Rural Area Set-Aside (20%)
   1. Investments in rural areas (as defined by the U.S. Census Bureau and Office of Management and Budget).
   1. Priority processing for rural projects.
   1. Considered the most favorable category due to fewer applicants and shorter wait times.
2. High-Unemployment Area Set-Aside (10%)
   1. Investments in high-unemployment areas, are defined as areas where the unemployment rate is at least 150% of the national average.
   1. Targeted Employment Areas (TEAs) include these high-unemployment areas.
3. Infrastructure Projects Set-Aside (2%)
   1. Investments in infrastructure projects that are publicly administered (e.g., roads, bridges, government facilities).
   1. This is a new category introduced by RIA.

These set-asides are available for both direct EB-5 investments and regional center investments. The reserved visa categories (rural, high-unemployment, and infrastructure projects) are available to all EB-5 investors, regardless of whether they invest in a direct EB-5 business or a regional center project.

Less Involvement in Day-to-Day Operations

Unlike direct investments, which often require investors to take an active role in managing and operating the business, regional center investments are more passive. Investors do not need to be involved in the daily operations of the project. This allows investors to pursue other business interests, careers, or personal ventures without worrying about managing their EB-5 investment on a full-time basis.

What Support and Services to Expect from a Regional Center

Regional centers offer support throughout the entire EB-5 process and provide supporting documents for the immigration petition:

1. Filing the EB-5 Petition: Once you decide on a regional center and a project, the center will help you with your EB-5 petition process. They will provide all the necessary documentation for your I-526E petition.
2. Tracking Your Investment: Regional centers don’t just facilitate the investment—they also keep you updated on your project’s progress. They’ll provide you with regular reports about the status of the investment, the job creation process, and other important developments related to the project. This ongoing communication ensures that you are informed and aware of the status of your investment and Green Card process.

This support is particularly helpful since it allows investors to focus on their primary interests while ensuring their EB-5 investment and immigration process remain on track.

How an Immigration Attorney Can Help

An experienced immigration attorney plays a crucial role in navigating the complexities of the EB-5 program. While regional centers manage the investment side of things, an immigration lawyer provides vital assistance in ensuring that your EB-5 investment and petition, along with the immigration process meet legal requirements.

1. Guidance on Immigration Requirements: An immigration attorney helps you understand the legal requirements for the EB-5 program. They provide expert advice on the documentation needed for your petition, help you prepare a thorough application, and guide you through the entire process. Their knowledge of U.S. immigration laws ensures that your application is complete, reducing the risk of delays or rejections.
2. Reviewing Regional Center Projects: While regional centers handle the investment process, an immigration attorney can help you evaluate whether the regional center and its projects align with your immigration goals. They cannot provide financial or investment advice. 
3. Filing the EB-5 Petition and I-829 Petition: An immigration attorney will assist in preparing your I-526E petition (the initial EB-5 petition) and guide you through the subsequent steps, including filing your I-829 petition to remove conditions from your Green Card. They will ensure that your documentation is complete and that you meet all criteria for Green Card approval.
4. Addressing Legal Challenges and Delays: If there are issues with the USCIS during your EB-5 process—such as delays in processing, requests for evidence (RFEs), or complications with your regional center—your immigration attorney will advocate on your behalf. They are experienced in handling such challenges and can communicate directly with USCIS to resolve issues efficiently.

By working with an experienced immigration lawyer, you can avoid common pitfalls, streamline your process, and ensure that your EB-5 journey is as smooth as possible.

How to Choose the Right Regional Center

Choosing the right regional center is one of the most important decisions you will make in your EB-5 journey. It is important that you work with a qualified and experienced financial advisor to assess the investment options.  You might also want to consult a corporate lawyer to examine corporate documents related to the NCE. Set out below are some factors to consider, but please note that this is not financial advice in any form or context. 

1. USCIS Compliance The first thing to check is whether the regional center is approved by USCIS and in good standing. You want to ensure that the center has a valid designation and is not subject to termination or debarment. If a regional center is terminated during your EB-5 process, it can cause delays and complications with your Green Card application.
2. Experience and Reputation: Choose a regional center that has years of experience in handling EB-5 investments. Look for a center that has a proven track record in managing successful projects and has a reputation for reliability. You should also consider the expertise of the management team, particularly their knowledge of finance, real estate, and immigration law.
3. Track Record of Success: Investigate the center’s history of successful EB-5 projects. Look into their approval rates for investor petitions (I-526E) and Green Card applications (I-829). A regional center with a strong success rate is more likely to help you successfully navigate the EB-5 process and obtain your Green Card.
4. Transparency and Communication: Effective communication is essential when choosing a regional center. A trustworthy center will provide clear and transparent updates about your investment. They should be responsive to your questions and concerns, offering regular reports on the status of the project and job creation. You should feel comfortable contacting the center for information and updates throughout the process.

Conclusion Investing through an EB-5 regional center offers benefits like lower investment requirements in Targeted Employment Areas, more flexibility in job creation, and less involvement in daily operations. Choosing the right regional center is crucial for a successful investment and obtaining a U.S. Green Card. By evaluating USCIS compliance, experience, track record, and communication, you can make an informed decision. Consulting with an experienced EB-5 immigration lawyer and a trusted regional center will help you navigate the process confidently and increase your chances of success in securing U.S. residency.