Categories: EB-5 Due Diligence

With Over 800 Choices, How Do I Choose A Good EB-5 Regional Center?

When there are 884 approved EB-5 regional centers currently listed on the USCIS site, how does a potential investor choose one?

This article contains tips and criteria an EB-5 applicant can use to narrow this long list down and find a reputable and low-risk regional center.

If a low-risk and thus low return on your investment are not what you are looking for, try looking into investing in the EB-5 Direct Program where you can manage the day to day operations of your investment. This control can allow you to make a larger return on your investment in addition to fulfilling the program requirements and obtaining green cards for you and your immediate family.

Most investors who are interested in the Regional Center Program are primarily focused on getting green cards and not managing the day to day operations of their own investment, so this article will focus on that program.

To note, one myth about EB-5 is that the Direct Program minimum investment requirement is $1 million and the Regional Center Program minimum investment amount is $500,000. This is false, the $500,000 minimum investment is based on whether or not the project is located in a targeted employment area (TEA). A TEA is a rural or high unemployment area. Both programs can utilize the TEA designation and qualify for the lower minimum investment amount. Regional Centers, however, tend to utilize TEA designation more often.

If the EB-5 Regional Center Program is right for you, you may now be wondering how you find a reputable EB-5 regional center when there are hundreds of choices. A lot of money is on the line and not all regional centers are created equal. Here are some helpful tips and criteria:

Tips:

Although hiring professionals to assist you in conducting due diligence is highly recommended, it does not replace the need to conduct your own research into any investment you plan to make (it’s your capital and future)
Select an experienced EB-5 immigration attorney for insight on a regional center and their projects in addition to handling the filing of your petitions
An investment broker or financial adviser can review the regional center and their projects and possibly advise
Find out if you need to be an accredited investor and if you qualify as an accredited investor
Although you want to find a regional center with a history of successful EB-5 projects, past success does not guarantee future outcomes (but it can minimize some risk)
Don’t rely solely on the advice of an EB-5 professional affiliated with a regional center, hire your own immigration attorney

Criteria (Discuss with your team of EB-5 professionals):

Determine if you’re eligible for the EB-5 Program
Determine if the regional center and project meet EB-5 Program requirements
Review the regional center’s business plan and offering documents
Conduct due diligence into the regional center’s track record and I-526 and I-829 approval history
How long has the regional center been around
What is their job creation methodology
How much experience does the management team have
Is the investment loan-based or equity-based
Review the repayment method and the exit strategy (Who gets paid back first and when?)
Where in the capital stack is the EB-5 capital
How will the funds be redeployed if necessary
Look for signs of fraud, red flag guarantees, or past SEC violations