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EB-5 Regional Center: Definition, History and List of Approved Regional Centers

EB5 States > EB5 Immigrant Investor Program > Regional Centers

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The EB-5 Regional Center is a business or public economic entity that stimulates the U.S. economy through foreign investments and job creation. Regional centers are designated by the United States Citizenship and Immigration Services (USCIS). They were created by the U.S. Congress in 1992 to boost the U.S. economy through foreign investments.

The EB-5 investor visa allows overseas investors, their spouses and children under 21 years of age, to acquire permanent resident status through investment. To qualify, the investor must commit a minimum amount of $800,000 to establish a new commercial enterprise. In addition, this new business must be located in a targeted employment area (TEA) and employ ten qualified American citizens in full-time positions.

What is an EB-5 Regional Center?

An EB-5 regional center is a regional center (R.C.) that promotes economic growth. In other words, it is an organization dedicated to achieving the objectives of the EB-5 program, which include stimulating the U.S. economy through foreign investment and job creation. As a result, it is eligible to accept funds from immigrant investors. The USCIS designates these regional centers as intermediaries between investors and EB-5 projects.

What Is the History of EB-5 Regional Centers?

The EB-5 Regional Center program was established by the U.S. Congress in 1992. Initially known as the Immigrant Investor Pilot Program, it was created in 1990. The program’s authorization has been extended through 2015, and since then, it has been repeatedly reauthorized for varying durations. If you want to learn more about the i-924 petition, you can find additional information on it.

What Is EB-5 Regional Center Securities Compliance?

All EB-5 regional centers and projects must adhere to U.S. securities laws. These laws are in place to safeguard the interests of investors from unethical or incompetent securities sales practices. As defined by the United States Securities Act of 1933, securities encompass stocks, notes, bonds, direct participation program investments, and investment contracts. The U.S. Securities and Exchange Commission (SEC) regulates securities and requires registration with the SEC. In addition, four EB-5 Regional Centers’ security compliance measures are in place.

What Is the History of EB-5 Regional Centers?

The EB-5 Regional Center program was established by the U.S. Congress in 1992. It was originally known as the Immigrant Investor Pilot Program, created by Congress in 1990. The program’s authorization was extended through 2015, and since then, the Regional Center Program has been repeatedly reauthorized for varying durations. If you want to learn more about the i-924 petition, you can find additional information on it.

What Is EB-5 Regional Center Securities Compliance?

All EB-5 regional centers and projects must comply with U.S. securities laws. These laws aim to protect investors’ interests from unethical or incompetent securities sales practices. As defined by the United States Securities Act of 1933, securities encompass stocks, notes, bonds, direct participation program investments, and investment contracts. The U.S. Securities and Exchange Commission (SEC) regulates securities and requires registration with the SEC. There are four EB-5 Regional Centers’ security compliance measures in place.

  • Registering Securities
    The process of registering securities is complex, expensive, and time-consuming and necessitates issuers to provide comprehensive disclosures to investors. The U.S. Citizenship and Immigration Services (USCIS) enforces strict timelines on EB-5 projects, making it challenging to comply with certain standards due to the significant time commitment required. Alongside federal securities regulations, EB-5 investments may also be subject to state-level regulations, leading to additional expenses and delays.
  • Regulation D Exemptions
    Regulation D exempts EB-5 securities offerings through EB-5 regional centers from SEC registration, eliminating the need for registration. EB-5 regional centers offer private placement offerings and provide each investor with a private placement memorandum (PPM) containing all necessary disclosures. Investors generally need to be accredited for private offerings, meaning they must have a net worth exceeding $1,000,000 to qualify as accredited investors. Alternatively, a married investor with an income exceeding $300,000 or a single investor with an income exceeding $200,000 for the past two years is considered eligible. Each investor is required to sign a document confirming their eligibility as an accredited investor.
  • Securities Laws and EB-5 Solicitation
    Regional centers and sponsored initiatives seeking EB-5 investors typically cannot solicit investments or advertise under Regulation D exemptions. However, the SEC has not explicitly clarified how the Regulation D ban on solicitation and advertising directly applies to EB-5 offerings. Advertisements are permitted as long as they do not reference specific investment information.
  • Broker-Dealers and the EB-5 Program
    Broker-dealers, as defined in the 1934 Securities and Exchange Act, are individuals, companies, or other organizations involved in trading securities. The SEC mandates that broker-dealers be accredited by both the SEC and the relevant government securities regulators. The SEC may identify entities involved in connecting EB-5 projects and investors or when EB-5 projects engage with investors as broker-dealers. These entities can include regional centers, advertisers, migration agents, and others. An EB-5 Regional Center should engage the services of an immigration lawyer to navigate the complexities of securities laws and ensure proper documentation for the success of an EB-5 venture. In addition, EB5 States is an approved EB-5 Visa Broker-Dealer.

What are the Contributions of an EB-5 Regional Center to the U.S. Economy?

The EB-5 Program has significantly contributed to the U.S. economy, amounting to several billions of dollars per fiscal year. Between FY2014 and FY2015, EB-5 Regional Center projects generated $11.2 billion in capital investment. This represents 2% of the total net foreign direct investment (FDI) inflow to the United States during that period. The program’s capital investment and related spending contributed $33.6 billion to the U.S. economy in FY2014 and FY2015. Additionally, tax revenues earned by the program for the federal, state, and local governments totaled $4.2 billion between FY2014 and FY2015. Of this amount, the program’s contribution of $2.7 billion in federal tax revenue is equivalent to 634 percent of the total appropriations made by the federal government for economic development programs through the U.S. Economic Development Administration (EDA) between FY2014 and FY2015, at no cost to U.S. taxpayers.

What is the EB-5 Regional Center Program Reauthorization?

The EB-5 regional center program reauthorization refers to its renewal after its expiration on June 30, 2021, under the 2022 EB5 Reform and Integrity Act.

Here’s how the EB-5 regional center reauthorization works:

 

  • The regional center’s EB-5 program will be extended for five years, with the effective date being 60 days after the law’s passage.
  • It protects investors from future expirations of the EB-5 program and applies to investors who filed their petitions before September 30, 2026.
  • The minimum investment amount for investments in targeted employment areas (TEAs) is $800,000, and for non-targeted employment areas, it is $1,050,000.
  • The Department of Homeland Security (DHS) now has sole responsibility for determining which areas qualify as TEAs.
  • Appropriations of EB-5 Visas have been modified with a 32% preference for specific projects within a fiscal year, as follows:
    • 20% will be allocated to rural development.
    • 10% will be designated for places with high unemployment.
    • 2% will be reserved for infrastructure initiatives.

 

U.S. investors can file Form I-829 (EB5 Application) and I-485 (Adjustment of Status petitions) even if the I-829 form has not been approved yet.

  • USCIS can now adjudicate previously filed Adjustment Applications and Petitions that were left pending.
  • A grandfather clause has been included to ensure that investors can proceed with their cases regardless of expiration dates.
  • The EB-5 Regional Center reauthorization extends until 2027, providing reassurance and security to a significant number of immigrant investors who have relied on the program.

What is EB-5 Regional Center Program Renewal?

The EB-5 regional center program renewal refers to the EB-5 Reform and Integrity Act of 2022. This bill introduces modifications to several crucial aspects of the Regional Center Program, including a five-year reauthorization period, a regulatory definition for targeted employment areas, and adjustments in the investment threshold amounts, essential investor protections, and additional security and integrity measures.

What is the EB-5 Regional Center Success Rate?

The USCIS website offers up-to-date information on the approval and rejection rates for I-526 and I-829 petitions. Generally, the acceptance rate for I-526 petitions ranges from about 75% to 80%. Therefore, it can be assumed that applicants who obtain approval for the I-526 form will seek permanent residency status with conditions. Overall, the approval rate for I-829 petitions exceeds 90%.

What are the Differences between the EB-5 Regional Center and EB-5 Direct Investment?

 

The EB-5 program offers two investment options for investors: the EB-5 Regional Center and EB-5 Direct Investments. While these two investments may appear similar, there are differences that every investor should be aware of before making a final decision. Here are the three main differences between an EB-5 Regional Center and EB-5 Direct Investment:

 

  1. Job Creation Methodology:
    • Direct Investment: All jobs counted toward the EB-5 investment are salaried positions at the new commercial enterprise.
    • Regional Center Investment: Jobs counted toward the EB-5 investment include both salaried staff and indirect employment resulting from the project’s involvement in the local community.
  1. Control over the Business:
    • Direct Investment: The investor is the sole owner of the business or may have co-owners. The investor holds significant decision-making power and influence over the company’s operations.
    • Regional Center Investment: The investor is one of many investors in a regional center project. They become a limited partner with minimal involvement in the business operations. The investor has voting rights and receives benefits as a limited partner.
  1. Return on Investment (ROI):
    • Direct Investment: Potentially offers higher rates of return. The investor has more control, which helps minimize business failure or other difficulties.
    • Regional Center Investment: If the project fails to raise sufficient financing, it may never get off the ground while the initial investors continue to incur costs.

Does an Immigration Lawyer Work with an EB-5 Regional Center?

Yes, a regional center-affiliated immigration lawyer (attorney) provides support to the regional center in producing the project documentation. These visa attorneys are necessary for regional centers because EB-5 tasks involve highly specialized immigration law. Therefore, not all immigration attorneys can handle EB-5 tasks effectively.

What are the approved EB-5 Regional Centers?

As of July 4, 2021, the USCIS has a list of 673 regional centers. You can obtain a complete list of Regional Centers from USCIS. Here are a few USCIS-approved and operating EB-5 Regional Centers in the following U.S. states:

Alabama

  1. America’s Center for Foreign Investment (ACFI) Address: PO BOX 11032 Montgomery, AL 36111-0032
  2. BayPointe EB-5 Regional Center Address: 1956-J University Blvd S Suite 139 Mobile, AL 36609
  3. Southeast EB5 Regional Center, LLC Alabama Address: 1325 Satellite Blvd N.W. Suite 1502 Suwanee, GA 30024

California

  • 168 America Regional Center, LLC Address: 1211 Center CT DR 200 Covina 91724
  • AAA California Regional Center, LLC (America Asia Alliance) Address: 1885 Lundy Ave. Suite 117, San Jose, CA, 95131
  • Admiralty California Regional Center LLC Address: 111 N. Market Street, Suite 300, San Jose, CA 95113

Virginia

  • Capital Area Regional Center (CARC) Address: 600 Cameron Street Alexandria, VA 2230
  • Chesapeake Regional Center, LLC Address: 4437 Brookfield Corporate Dr. STE 207, Chantilly, VA 20151
  • CP Southern Regional Center Address: 3131 McKinney Avenue, Suite 475, Dallas, TX 75204

Washington

  • American Family Regional Center
  • Cascadia Regional Center Address: 1835 Main Street Suite #101 Weston, Florida 33326
  • Fairhaven Capital Advisors Regional Center Address: 325 118th Ave S.E. #101, Bellevue, WA 98005

Texas

  • Alamo Equity Texas Regional Center One Address: 2030 N LOOP 1604 W STE 201 San Antonio TX 78248
  • Brooks City-Base Regional Center Address: 3201 Sidney Brooks, San Antonio, TX 78235
  • Greater Houston Regional Center, LLC Address: 1616 Voss Street, Suite 618, Houston, TX 77057

Utah

  1. Golden Lamp Regional Center, Inc. Address: 6720 Buena Vista Dr, Ogden, UT 84405
  2. Utah Regional Investment Fund, LLC Address: 1513 Technology Way, Building A, Suite 2100, Orem, Utah 84097
  3. Mountain States Center for Foreign Investment (MSC) Address: 515 South Palisade Dr Orem, UT 84097

Colorado

  1. American Lending Center Colorado Regional Center, LLC Address: 1 World Trade Center, Suite 1130, Long Beach, CA, 90831
  2. InvestAmerica EB-5 Address: 4100 East Mississippi Ave, Ste 500 Glendale, CO 80246
  3. KCI Capital Limited (former name FP Advisors, LLC) Address: One South Nevada Ave, Suite 200 Colorado Springs, CO 80903

New York

  • George Washington Immigration Group, LLC Address: 135 East 57th Street FL#14 New York, NY 10022
  • New York City Transportation Regional Center LLC Address: 99 Hudson St, New York, NY 10013, United States
  • Manhattan Metropolitan Regional Center Address: 41-60 Main Street, Suite 207B, Flushing, New York, 11355

Florida

  1. American Builders Regional Center Address: 21 Se 1st Avenue Floor 10, Miami, FL 33131-1026
  2. American Opportunity Regional Center LLC Address: 6205 Blue Lagoon Dr #130, Miami, FL 33126
  3. Florida EB-5 Regional Center, LLC Address: 10800 Biscayne Boulevard #925, Suite 925 – Miami, Florida 33161

Georgia

  1. American Investment and Immigration Center, LLC Address: 5950 Live Oak Pkwy Suite 320, Norcross, GA 30093
  2. Georgia Center for Foreign Investment and Development Address: 1075 Peachtree Walk NE, Atlanta, GA 30309
  3. Real Estate Development Center of America LLC Address: 209 Gordon Avenue, Calhoun, GA 30701

Hawaii

  1. Advantage America Hawaii Regional Center, LLC Address: 400 Tenafly Road, #1057 Tenafly, NJ 07670 Idaho
  2. Hawaiian Opportunities Regional Center, LLC Address: 1050 Bishop Street, Suite 530, Honolulu, HI 96813
  3. Golden Pacific Ventures Regional Center Address: 1390 Willow Pass Rd, Suite 192. Concord, CA 94520

Illinois

  1. Chicago Real Estate Development Regional Center, LLC Address: 9400 Falling Waters Dr E Willowbrook, Illinois, 60527
  2. Crossroads Investment Partners, LLC Address: 111 East Wacker Drive , Chicago, Illinois
 
 

Advantages of a Regional Center

The main advantage of investing in a Regional Center is related to job creation. When investing in a Regional Center, the USCIS allows the Regional Center to count direct, indirect, and induced jobs associated with the project. In contrast, only direct jobs are counted when investing in a New Commercial Enterprise (NCE). By investing in a Regional Center, the investor is not involved in the day-to-day operations of the new commercial enterprise. Typically, the investor becomes a limited partner in the Limited Liability Company (LLC) formed by the Regional Center, while the Regional Center acts as the general partner. This setup is beneficial for individuals who are solely interested in obtaining an EB-5 green card for themselves and their families and do not wish to engage in any business activities during the investment period. Additionally, investing in a Regional Center grants the investor the freedom to live, work, or travel anywhere in the U.S. without being tied to the specific business they invested in.

The Regional Center’s Focus on Geographical Region and Economic Growth

The Regional Center should provide detailed plans for focusing on a specific geographical region within the United States and promoting economic growth in that region.

Job Creation Strategies and Capital Investments

The Regional Center should outline, with verifiable detail and using economic models where applicable, how jobs will be created directly or indirectly through capital investments aligned with the Regional Center’s business plan. This should include information on the amount and source of capital committed to the Regional Center and the promotional efforts made and planned for the business project.

Positive Impact on Regional or National Economy

The Regional Center should explain how it will positively impact the regional or national economy. This can be achieved through:

  1. No day-to-day management requirements, relieving investors of operational responsibilities.
  2. The benefit of “indirect employment creation” assists EB-5 investors in meeting the job creation requirement.
  3. The flexibility for the investor to live and work anywhere in the U.S. provides personal and professional freedom.

An investment through the Regional Center program alleviates the burdensome job creation requirement. The Regional Center program eliminates the need for ten direct employees, as required by the Traditional EB-5 Program, and instead allows for a more flexible “indirect employment creation” approach. The investor must prove that the proposed project will create ten new jobs within the Regional Center’s economy to satisfy the requirement.

The role of the investor in the Regional Center program fulfills the management requirement imposed by federal regulations while allowing them to make an EB-5 investment. As a limited partner, the investor has limited involvement in policy-making but no authority in business operations or day-to-day management. This makes Regional Center programs an attractive option for the majority of immigrant investors who are not interested in the active management of a business. Additionally, this business structure offers investor protection, as their liability is limited to the extent of the EB-5 investment amount.

Numerous approved Regional Centers are listed on the USCIS website, where you can check their status.

EB5 States is here to assist you in navigating the path to citizenship through investment. We have successfully guided many families through the EB5 immigration process. We are ready to answer your questions about direct investment options for EB5 and EB-5 Processing Times and provide a step-by-step walkthrough of the EB-5 program.

Schedule an appointment for a one-on-one session with Vivek Tandon Esq., a U.S. Lawyer and Investment Banker. Contact us for more information.

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