Choosing an EB5 Regional Center

Investing in an EB5 regional center can make choosing a business in which to make the qualifying investment into for an EB5 green card an easier task for foreign EB5 investors. Although the search for a commercial enterprise that will qualify the investor for the EB5 program is reduced greatly, it is still important to evaluate the regional centers with the same critical eye as one would any other investment opportunity. Even though am EB5 regional center has obtained approval for inclusion in the Immigrant Investor Pilot Program from the U.S. Citizenship and Immigration Services (USCIS), the capital investment is in no way guaranteed by the U.S. federal government. Additionally, EB5 investors should not mistake the regional center's status as a guarantee that they will ultimately receive the EB5 green card. Reasons for an Investment in an EB5 Regional Center to Fail There are several reasons why an EB5 investor's chosen regional center could result in the denial of their petition for an EB5 green card. These circumstances are the same as are possible with any qualifying investments under the rules of the USCIS and will usually result in the termination of the EB5 regional center's termination of qualification for the program. *Failure to produce jobs *Failure to improve regional productivity *Failure to promote economic growth *Found to have participated in fraud or misrepresentation *Capital Investments not truly at risk What is "Due Diligence?" The U.S. Citizen and Immigration Services warns that EB5 investors should exercise "due diligence" when choosing an EB5 regional center as the qualifying investment for the Immigrant Investor Pilot Program. The term "due diligence" loosely means an appropriate amount of investigation and consideration that should be performed before a legal commitment. In this instance, researching the EB5 regional center should be exhaustive. Economic forecasts prepared by independent firms are useful as are the biographies of the regional center's management team. Thanks to the internet, researching a regional center, the geographic area in which the investment will be located and the firm producing the economic analysis is not difficult. What are the Benefits of Investing in a Regional Center to Obtain an EB5 Green Card? Even with the risk, there are significant benefits to investing in an EB5 regional center over other commercial enterprises. *Prequalification – In order to obtain the status of regional center, the entity must apply to USCIS with a proposal that details its projected success in the areas of employment and stimulation of regional economic growth. The regional center must file for continued eligibility annually. Although it is no guarantee of success, obtaining approval from USCIS means that the agency deems the entity's proposal as feasible and sound. *Lower Capital Investment – Almost all EB5 regional centers invest in projects located in areas that have a qualifying unemployment rate or municipality size that meets the USCIS guidelines for the minimum of $500,000 from EB5 investors. This is half the minimum required investment in other types of commercial enterprises.