IIUSA Recommended Best Practices for EB-5 Regional Centers
(Adopted May 2014)
The IIUSA Best Practices Committee was charged with developing a list of best practices to provide guidance to regional centers seeking to conduct business in a manner that will foster the growth and success of the EB-5 program. IIUSA believes that a set of best practices would be useful both because of the relative youth of the regional center EB-5 program and because of the complexity of the concepts and principles that govern regional center activity under the auspices of multiple government agencies and under the laws and practices of multiple countries.
As a preliminary matter, it is important to make clear what the Committee considers a “best practice” to be and not to be:
- A best practice is not meant to be a minimum legal or ethical standard of conduct by which every regional center must abide. To put it another way, failure to abide by a best practice is not meant to be considered a legal or ethical breach or failure of the regional center. Furthermore, the list of best practices is not meant to be a list of legal requirements. Rather, it is meant to provide guidance to regional centers seeking to enhance their operations and provide protection to themselves, associated entities, investors and other involved parties.
- A best practice is not specific to structures in which the regional center acts as (or is related to) the manager of the new commercial enterprise. Best practices also apply to service agreement structures. USCIS makes no distinction between the two structures, and neither does the Committee when it comes to recommending best practices.
We view this document as a start to an evolving process to which additions and refinements will be made as we benefit from time and experience.
Throughout this process, we benefited from the active and tireless involvement of many committed professionals, including regional center owners/operators; project developers; immigration lawyers; securities attorneys; economists; insurance advisor; and others. It was truly an extraordinary group making an extraordinarily committed effort. The end result contains those best practices, which achieved consensus or near consensus within the group.
We all hope that this exercise will prove to be a valuable resource and guiding light for many regional centers and for the EB-5 industry as a whole.
Disclaimers: No content or information provided within this document should be construed to constitute legal advice or services. As a service to its membership, IIUSA seeks to provide informational and educational materials regarding a range of issues, including, among others, ethical business behavior, but urges it members and others reading this material to seek legal counsel as appropriate. In addition, while IIUSA endeavors to keep the information it provides up to date and current, please be advised that such information may not reflect the most current information available. IIUSA is not responsible for any subsequent use of these materials or reliance on any information contained therein.