An Overview: Applying for EB-5 Regional Center Designation

An EB-5 regional center is a well-recognized economic unit in the US that is responsible for catering to economic development. Regional centers are designated by USCIS to encourage active participation in the Immigrant Investor Program.

Direct vs. Regional Center EB-5 Investments

To become eligible for a Green Card under the immigrant investor program, foreign investors must fulfill the criteria related to their investments and job creation. EB-5 investors can select between two investment models to achieve the set criteria.

Moving Forward With an EB-5 Investment Model

When it's time to make a decision between the direct and regional center EB-5 investment models, investors must take a sincere dig at both the advantages and disadvantages of each option made available. For instance, foreign direct investment projects usually expect a more active management role, whereas regional center investments require a more passive role. Hence, regional center investments might not be the best fit for investors who prefer a more hands-on approach, but they are right for those who want to go for limited managerial responsibilities.

Applying for EB-5 Regional Center Designation

The EB-5 regional center designation process is complicated and best approached with the assistance of professionals. Application is carried out through Form I-956, which must be completed and submitted with proper documentation illustrating the economic unit's suitability for designation of a regional center.

The supporting documents must contain verifiable information that showcases the industries in which the regional center set up the plan to operate and its geographic scope. Additionally, the documentation must clearly state the center will promote and achieve economic growth.

Form I-956 supporting documentation must include

• relevant operating and/or partnership agreements,

• an economic report that sets out job-creation forecasts calculated using established economic models,

• a private placement memorandum (PPM), and

• professionally prepared transactional, corporate, securities, and/or loan documents.

The I-956 petition requires applicants to shed light on the regional center's planned coverage area; applicants can choose between smaller coverage areas to larger areas comprising multiple states. The projected business plan must speak well in favor of the regional center, and it has the resources to promote economic growth and make room for employment. Applicants must describe the kinds of EB-5 projects they will sponsor and their projected employment creation. A detailed, third-party economic impact study related to the projected employment will be useful in this section of Form I-956.

Additionally, Form I-956 must identify all individuals involved in managing the regional center, and a separate application, Form I-956H, should be filled with biometrics and detailed background information. PS: Only U.S. citizens and lawful permanent residents can take part in managing an EB5 regional center or investment project.

Preparing the application and collecting the required documentation can take time. Once the completed application is submitted to USCIS and the filing fee, processing can take up to a year.