The EB-5 Regional Center Investment Program

Overview

Congress created the fifth employment-based preference (EB-5) immigrant visa category in 1990 for qualified foreigners seeking to invest in a business that will benefit the U.S. economy and create or save at least 10 full-time jobs. The basic amount required to invest is $1 million, although that amount is reduced to $500,000 if the investment is made in a rural or high unemployment area. Of the approximately 10,000 EB-5 green cards available each year, 3,000 are reserved for foreign nationals who invest through a Regional Center.

The Regular EB-5 Investment Program

Section 203(b)(5) of the Immigration and Nationality Act allocates 10,000 green cards each year for foreign nationals who invest in a new business that hires at least 10 full-time U.S. workers. To qualify under the regular EB-5 investment category, the individual must have invested at least $1 million (or at least $500,000 if investing in a rural or high unemployment area) and through that investment create or save at least 10 jobs for U.S. workers.

EB-5 applicants first receive a conditional green card valid for two years. At the end of that time they must file another application showing that their money was "at risk" during the two-year period and that the jobs have been created. Once that has been approved, they become regular green card holders.

The EB-5 Regional Center Investment Program

To encourage foreign investment in the U.S. economy through the EB-5 category, Congress created an EB-5 pilot program in 1993. By so doing, Congress permitted the U.S. immigration agency to designate qualified applicants as Regional Centers. A Regional Center is a private enterprise or corporation or a regional governmental agency with a targeted investment program within a defined geographic region. The Regional Center program in many ways mirrors long active and successful investment-employment based programs in the United Kingdom, Canada, Australia, and other foreign nations.

The Regional Center Investment Program allocates 3,000 green cards each year for people who invest in designated Regional Centers. The Program has been renewed several times, and is currently due to expire September 30, 2008. The IIUSA is actively working to make the Regional Center Investment Program permanent.

The Regional Center Investment Program does not require that the foreign investor's enterprise itself directly employ 10 U.S. workers. Instead, it is enough if 10 or more jobs will be created directly or indirectly as a result of the investment. The Regional Center Investment Program aids foreign investors by directing and professionally managing their investment in the designated business and geographic focus of their Regional Center.

A Regional Center obtains its designation by submitting a detailed application to U.S. Citizenship and Immigration Services (USCIS). The application must state: (1) the kinds of businesses that will receive capital from investors; (2) the jobs that will be created directly or indirectly as a result of the investment of capital; and (3) the other positive economic impacts that will result from the investment of capital.

Once USCIS has approved a Regional Center application, an investor seeking an EB-5 green card through the Regional Center Investment Program must make the qualifying investment (i.e., $1 million or $500,000) within an approved Regional Center. However, the requirement of creating at least 10 new jobs is met by a showing that as a result of the new enterprise, such jobs will be created directly or indirectly.

Before an investor can participate in a Regional Center EB-5 investment program, each investor must independently petition USCIS for an EB-5 visa. USCIS solely determines whether the investor qualifies for the EB-5 visa. USCIS' diligence includes a detailed review of the sources of the investor's funds, family history, and other representations of the head of household and his immediate family member under the age of 21.

As with the regular EB-5 program, qualified investors investing through a Regional Center first receive a conditional green card valid for two years. At the end of that time the investor files another application with USCIS showing that their money was "at risk" during the two-year period and that the jobs have been created. Once those applications have been approved, the investor and his immediate family become permanent green card holders and can later apply to become U.S. citizens. The whole EB-5 process takes approximately 3-5 years or longer depending upon the timeliness, quality and validity of the investor's submissions.

Legal Materials

EB-5 Articles

EB-5 Regional Center Program Podcast

Feel free to listen to this podcast produced recently. Download the MP3 (1.1 MB).

Relevant Links

Invest in America

Website for the Invest in America initiative by the U.S. Department of Commerce, which seeks to promote foreign direct investment in the United States:
www.investamerica.gov

U.S. Citizenship and Immigration Services

Website for U.S. Citizenship and Immigration Services (USCIS), the part of the U.S. Department of Homeland Security (DHS) responsible for the EB-5 program:
www.uscis.gov

U.S. Department of State's Visa Office

Website for the U.S. Department of State's Visa Office:
travel.state.gov