The EB-5 Immigrant Investor Program was created with the goal of generating greater economic growth. Regional centers should help grow the economy of the geographic area in which they are located. The regional center model within the EB-5 program offers an immigrant investor already-defined investment opportunities. It reduces the immigrant investor’s responsibility in identifying acceptable investment vehicles.
Under 8 CFR 204.6(e), a regional center “means any economic unit, public or private, which is involved with the promotion of economic growth, including increased export sales, improved regional productivity, job creation, and increased domestic capital investment.” Some regional centers contain one or more new commercial enterprises.
A regional center seeking approval from USCIS must file an I-924 form with USCIS. The I-924 must clearly describe how the regional center focuses on a geographical region of the United States, and how it will promote economic growth through increased export sales, improved regional productivity, job creation, and increased domestic capital investment. USCIS will require that the applying regional center provide verifiable detail regarding how jobs will be created either directly or indirectly. Regional centers applying to USCIS for EB-5 involvement must provide detailed statements regarding the amount and source of capital which has been committed to the regional center, as well as a description of the promotional efforts taken and planned by the sponsors of the regional center.
Applying regional centers should provide USCIS with a detailed prediction regarding how the regional center will have a positive impact on the regional or national economy in general. USCIS will focus on factors such as increased household earnings, greater demand for business services, utilities, maintenance and repair, and construction both within and without the regional center. The regional center must convince USCIS that the plans and predictions for the regional center are supported by economically and statistically sound forecasting tools that are valid, including , but not limited to, feasibility studies, analyses of foreign and domestic markets for the goods or services to be exported, and/or multiplier tables.
USCIS will review the proposed geographic boundaries of a new regional center and will decide whether they are acceptable. The applicant regional center must establish by a preponderance of the evidence that the proposed economic activity will promote economic growth in the proposed area. This question can be very fact-specific and the law and regulations do not require any particular form of evidentiary showing. The reasonableness of the proposed geographical boundaries may be demonstrated through evidence that the proposed area is contributing significantly to the supply chain, as well as the labor pool, of the proposed projects.
The EB-5 Immigrant Investor Program is an excellent way for foreign investors to relocate to the United States. Investors have different motivations for wanting to pursue the EB-5 program including having their children raised in the US, retirement, or starting a new business in the U.S. Before starting the process with USCIS, it’s important to have a full understanding of the pros and cons with each immigrant investment option – EB-5, EB-5 regional center, or E-2 visa. There are many misconceptions about the EB-5 program. Contact The Nunez Firm to schedule a consultation. Managing attorney Jay Nunez will personally meet with you to better understand your goals and objectives and help you discover which option is best suited to you.