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Do some EB-5 Regional Centers allow investors to directly manage their own EB-5 investments?

I have read that the vast majority of EB-5 visa applicants apply through EB-5 Regional Centers and that these Regional Centers then manage the investment. Are there also Regional Centers that give the investors more direct control over their capital and let them take a more active role?

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    Kate Kalmykov

    Immigration Attorney
    Answered on

    As part of the I-526 approval process, regional centers have to prove to USCIS that the EB-5 investors would be engaged in the "management" of the enterprise as opposed to maintaining a "purely passive role." 8 C.F.R. ? 204.6 (j)(5). However, many regional centers structure the new commerical enterptise into which the investor invests their EB-5 funds as either limited partnerrships or limited liability companies. Pursuant to 8 CFR 204.6 (j)(5)(iii), if the petitioner is a limited partner or limited liability member and the limited partnership or limited liability company agreement provides the petitioner with the rights, powers and duties normally granted to limited partners under the Uniform Limited Partnership Act, the investor will be considered sufficiently engaged in the management of the enterprise. As a practical and legal matter, this requirement can be met by a limited partner or limited liability member without the necessity of the investor committing to any specific amount of time or engaging in any day-to-day management, since such activities are performed by the general partner or managing member.

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    Regional centers do not allow investors to directly manage their investment capital.

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    David Hirson

    Immigration Attorney
    Answered on

    It is not customary for an investor in a regional center project to take on direct management responsibilities. The management would be of the commercial enterprise (the project itself) as the regional center usually has projects under its umbrella. Direct investments can be done and management control by the investors is usual outside of the regional center context. In that case 10 full-time employees on payroll in lawful status must be hired for each investor of $500,000 or $1 million who are seeking EB-5 residence status. There is no law prohibiting investors to be involved in management of a project under a regional center. In fact the contrary is true.

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