EB-5 Regional Center Program

Most EB-5 applicants invest in Regional Centers rather than create their own businesses.  The Regional Center program was created to facilitate foreign investment and job creation. This popular program reserves 3,000 of the annual 10,000 EB-5 visas for individuals investing at least $500,000 in designated Regional Centers. (Regional Center investors are not limited to the reserved amount of visas, however.).

Regional Centers are firms approved by the United States Citizenship and Immigration Services (“USCIS”) to pool funds, usually in the form of limited partnerships (or recently in venture capital firms).  Regional Centers have potential for providing significant employment and economic stimulation.  Most locate their projects in high unemployment or rural areas so that the required investment amount is $500,000 (plus a subscription fee) instead of $1 million.  Regional Center investors may take an equity ownership in a limited partnership and pool capital with other investors, usually with an expected return of their capital after five years, although some investments may be for a longer term.  Regional Centers typically charge a syndication or management fee of $30,000 to $50,000 in addition to the capital investment amount.

Regional Centers offer many advantages over other qualifying investment options. Investors in Regional Centers are not burdened with day-to-day management or operational responsibilities. The required capital investment is usually $500,000 plus the subscription fee (not $1 million).  

Each investor’s capital in a Regional Center must create ten direct or indirect jobs.  Proof of job creation is usually accomplished by the Regional Center’s economist report, which uses economic models to calculate the direct and indirect employment.  The indirect employment creation is a major advantage of Regional Center investments.

While Regional Centers must be approved by the USCIS, the U.S. government does not guarantee or back the enterprise in any way. 

Investing in a Regional Center is one of the fastest ways to immigrate to the United States. The 10,000 EB-5 visas annually have never been exhausted.  Immigrant investors are eligible to apply for an EB-5 visa (Form I-526) as soon as they make an investment in a Regional Center.

List of Regional Centers

There are about 100 approved Regional Centers – many are not active.  Martin Lawler will send you a list of the established Regional Centers with many approved green cards as well as some of the newer approved centers.  The list briefly describes the centers and provides contact information.  Martin will then review the Regional Centers with you.

Martin can also make referrals to a business analysis experts who can assist in conducting a due diligence investigation of prospective investments.

Examples of Regional Center Investments

Real Estate

A real estate limited partnership facilitates investment in industrial properties in a major city. The partnership purchases low-yielding warehouse and other properties with invested funds and converts them into offices, retail shops, and storage space.

Investors participate as limited partners and may earn regular monthly income from tenant rentals. Investors may also collect a share of future appreciation when the project is sold. Investment periods vary, but cannot end before the investor receives lawful permanent residence (a green card).

Low Interest Loans

A limited partnership makes low interest loans to businesses in a major city. Under the auspices of a Regional Center approved in 2003, this firm targets industry sectors that demonstrate strong indications of expansion, growing employment needs, and returns on investments. The Regional Center directs its efforts at financing projects and developing enterprises within targeted sectors, including hospitality and tourism, trade, technology, higher education, and transportation. The investment period of this program is five years.

Loan convertible to equity

One new Regional Center offers three different investments in publicly traded companies. The Regional Center loans funds to the public company. After five years, the investor may request the Regional Center cancel the loan and return the funds or in the alternative they be converted into the public company’s stock which may, according to the Regional Center, provide substantial profits.

Go on to Individual Investments…