The Importance of EB-5 Regional Center Due Diligence

Why is EB-5 regional center due diligence important?

As of April 6th, 2020, there are 746 USCIS approved regional centers. That’s 26 fewer approved regional centers than there were in March 2020. Between 2016 and 2018 there were over 800 active regional centers and that number came close to 900 approved regional centers in 2019. With the recent EB-5 Program changes and the current Covid-19 economic uncertainty, the number of regional centers may continue to decline, which is why it’s more important now than ever to select the right regional center.

A few key regional center due diligence questions prospective EB-5 investors should consider:

• Does the regional center have USCIS approval?
• What is the regional center’s track record and reputation?
• What are the credentials of the regional center’s principals?
• How long has the regional center been in operation and how many EB-5 projects have they completed?
• How many I-526 and I-829 petition have been filed, how many have been approved, and how many have been denied?
• Is the regional center transparent about statistics, finances, and records?
• What is the regional center’s job creation methodology?
• Does the regional center have a job creation buffer?
• Who is the project developer and what experience with EB-5 do they have?
• Where has the non-EB-5 funding originated from?
• What is the return on investment?

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