EB-5 Stakeholders Ensure All Previously Approved Regional Centers Maintain Authorization Moving Forward
August 25, 2022 – Multiple EB-5 industry stakeholders have entered into a settlement agreement with the United States Citizenship and Immigration Services (“USCIS”) that protects EB-5 investors and re-authorizes previously approved regional centers, effectively signaling the EB-5 program is fully back in business.
The settlement affects two cases: Behring Regional Center LLC, et al. v. Mayorkas, et al., No. 3:22-cv-2487-VC (N.D. Cal.) and EB5 Capital, et al. v. DHS, et al., No. 3:22-cv-3948-VC (N.D. Cal.). The plaintiffs include six leading EB-5 regional center operators – EB5 Capital, CanAm Enterprises, Civitas Capital Group, Golden Gate Global, Pine State Regional Center, Behring Regional Center – and industry organization Invest in the USA (“IIUSA”).
The key stipulations of the settlement – which can be read in its entirety here – are as follows:
- Previously authorized regional centers retain their authorization;
- Previously authorized regional centers must file a Form I-956 (or an already filed 956 will meet this requirement) by December 29, 2022, along with the filing fee to maintain authorization;
- Previously authorized regional centers need not wait for approval of their Form I-956 to file and receive adjudications from USCIS;
- Previously authorized regional centers may immediately file project applications;
- If, after filing a form i-956F, a regional center does not receive a formal receipt notice within ten calendar days of delivery to USCIS, an investor may use other forms of proof of the I-956F filing in their I-526E petition, such as a lock box receipt, cashed check or credit card charge provided by the regional center to the investor;
- The failure of a previously approved regional center to file a Form I-956 application or amendment will not standing alone, be a basis for USCIS to deny an investor’s I-526 or I-829 petition;
- USCIS will update its website, forms, and instructions to conform to the terms of the settlement agreement.
“Judge Chhabria’s grant of a nationwide preliminary injunction, and USCIS’ subsequent agreement to a reasonable settlement, enables the EB-5 Regional Center program to move forward contributing to the U.S. economy and creating American jobs,” said Ron Klasko of Klasko Immigration Law Partners. “Judge Chhabria’s thorough and well-reasoned decision provided the essential impetus for USCIS and the EB-5 industry to work constructively in reaching an agreement,” said Paul Hughes of McDermott Will & Emery. “We hope this marks the beginning of a new era of cooperation between USCIS and the EB-5 industry,” commented Laura Reiff of Greenberg Traurig. “On behalf of IIUSA, its leadership, and its members, we are excited about the settlement agreement among all plaintiffs and the government. The settlement clearly punctuates the extended reauthorization of the EB-5 Regional Center Program and assures the vitality and integrity envisioned by the RIA,” said Aaron Grau, Executive Director for IIUSA.
The EB-5 Program has an overwhelmingly positive impact on the U.S. economy. Between 2008 and 2021, the EB-5 program helped generate $37.4 billion in foreign direct investment to create and retain U.S. jobs for Americans at no cost to the taxpayer.
Founded in 2005, Invest in the USA is the national membership-based 501(c)(6) not-for-profit industry trade association for the EB-5 Regional Center Program. Fundamentally, IIUSA is an organization focused on stimulating the United States economy for the benefit of American workers, American communities, and all those invested in sustainable, domestic job creation.
Through dedicated advocacy work, education, industry development, and research, IIUSA advocates for policies that maximize economic benefit to the United States. From the EB-5 Regional Center Program. Accordingly, our primary mission is to achieve the permanent Congressional reauthorization of the EB-5 Regional Center Program after nearly 30 years of enthusiastic bipartisan support and record-breaking economic impact.
Aaron Grau, Executive Director, Invest in the USA (IIUSA)