The Role of an EB-5 Regional Center

The Role of an EB-5 Regional Center

The EB-5 investor program, launched in 1990, offers a pathway to legal permanent residency in the United States. With a qualifying EB-5 investment, foreign nationals can receive a U.S. Green Card, which enables them to work and live in the country. In exchange for their investment, the investors must create a minimum of 10 full-time jobs in the U.S. In addition, the investments must remain at risk and generate a certain number of jobs for U.S. citizens. The EB 5 Regional Centers are the preferred method for securing the EB-5 visa.

Sponsor job-creating projects:

An EB-5 regional center is an economic unit in the United States. These centers sponsor job-creating projects by pooling the capital of several investors. The EB-5 program has different rules for investing than it does for direct investments, and the investment structure is more complex. The EB-5 regional center is also known as an ‘EB-5 fund’. A reputable EB-5 regional center can act as a service agent for EB-5 projects.

Sponsor capital investment projects for EB-5 investors:

EB-5 regional centers sponsor capital investment projects for EB-5 investors. Through this designation, an investor can count on creating indirect jobs that are not directly created by the investment project. These jobs are not formally counted as direct jobs but are projected through economic modeling. Real estate development projects can create indirect jobs, but these are not counted. The regional center’s role in the program is critical.

Provide low-interest EB-5 capital to developers:

A Regional Center is a business entity that has been pre-approved for the EB-5 program. These entities are responsible for identifying and funding business ventures that meet the eligibility requirements for EB-5 green cards. They provide low-interest EB-5 capital to developers, which they repay over five years. If the investments succeed, the investment-producing businesses can earn a green card and gain permanent residency in the U.S.

Operate only within geographic areas delineated by USCIS:

EB-5 Regional Centers are permitted to operate only within geographic areas delineated by USCIS. Some R.C.R.C. may be temporarily expanded to serve more investors. But the overall objective is to generate economic growth. For example, an R.C.R.C. may only be eligible for a certain geographic region. A region has a unique set of needs and can be well-suited to host an EB-5 regional center.

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