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How can I start a Regional Center once I''ve begun business?

We do community care business, we serve developmentally disabled and mental illness clients. And we accepted 2 EB-5 investments already. 1. Is it possible we can be a regional center? 2. Do our facilities need to be in a TEA area if we are a regional center? 3. Can we be a regional center before we control any facilities? Thanks

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    Obtaining regional center designation may not be appropriate for this investment due to both cost and time limitations. Designation of a regional center does not require your business to be in a TEA. However, if the regional center is not within a TEA, a $1 million investment is required from each investor. Control of the facilities and regional center designation are separate matters.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    Yes, that is not an issue. Facilities do not necessarily have to be in a TEA, but it does lower the investment amount and you are able to attract more investors. There is no TEA requirement to get designated as an RC, and you can obtain that designation before you actually gain control of any facilities.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    I suggest you set up a consultation to determine if a Regional Center is the best way to go. You can provide EB-5 benefits to your investors without being a Regional Center and it is a much easier way to go. Big advantage of a Regional Center is being able to count indirect jobs but your type of facility is likely to have plenty of direct jobs.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    The question about whether or not to apply for EB-5 regional center designation is a complicated one, and it should be made in consultation with an experienced EB-5 immigration attorney, such as myself. It may be possible for you to qualify as a regional center, but the costs and the timing of the application must be taken into account. You can either be in a TEA or non-TEA and still qualify for regional center designation. The TEA issue is separate and independent from the regional center requirements. Also, the timing of the regional center application will be unaffected by whether it comes before or after you control facilities or before or after you have EB-5 investors in the project. Again, I strongly recommend that you retain experienced EB-5 counsel to discuss the requirements with you in detail.

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    Ed Beshara

    Immigration Attorney
    Answered on

    Our law firm has the experience to assist your U.S. business to become EB-5 compliant and to assist in advising you of the legal and financial infrastructures needed to make it an EB-5 Regional center with approvable hypothetical or actual projects. A Regional Center and its projects may or may not be on TEA''s.

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    Michael A Harris

    Immigration Attorney
    Answered on

    Yes, it is still possible for you to form a regional center. Though, due to very long adjudication timeframes you may want to start an umbrella project under an existing regional center; then, perhaps concurrently, you can seek your own regional center for future projects. Having a TEA is not required for RC status or for your projects; however, most RC projects are within a TEA geographic area, and it is generally more marketable when it''s located within a TEA. You can also form your regional center before your actual control of the facilities. However, your proposal will need to show how the EB-5 capital will be infused into the business and how jobs will be created over the requisite time period.

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    Rohit Kapuria

    Immigration Attorney
    Answered on

    I am curious about the two EB-5 investments that you have already received. Were these direct EB-5 investments? If so, I trust you are aware that you would need 20 direct, W2, 35 hour per week jobs to support the two EB-5 investments that you have already accepted. In the meantime, you can certainly apply for a regional center, however that will take at least 13-15 months before you can be approved. Your application will have to be based on a particular project and I am assuming you will use your current business model. You need to decide whether this will be a hypothetical, actual or exemplar project. Your actual project location, i.e. facilities, do not have to be in a TEA area to qualify for EB-5 investments. However, if you wish to target investors for $500,000 investments as opposed to $1 million investments, then yes, the principal place of business would have to be in a TEA. It is much easier to market a $500,000 investment to investors. I am unclear what you mean by your third question, however, if you plan on building your project prior to being approved as a regional center, then the deal structure would either have to be under the rubric of a direct EB-5 investment model or if you are interested in counting indirect jobs, then you would have to rent another regional center during that period.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Applying for Regional Center designation with an existing business can help you obtain the required geographical area and industrial classification. Existing business do have different job creation requirements, however. The TEA designation only matters in terms of the investment of $500,000 or $1 million. Regional centers can be designated with hypothetical or actual projects. Entering the EB-5 world with a project or to designate a regional center can be complicated, which is why retaining an experienced EB-5 attorney and team of professionals is highly recommended.

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    Grace Gardiner

    Immigration Attorney
    Answered on

    To be considered a Regional Center it has to be located in a TEA and hire ten or more U.S. citizens and or LPRs and retain ten or more employees for over two years.

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    Bill Travis Klein

    Immigration Attorney
    Answered on

    Whether you can start a regional center will depend on your business plan and level of involvement your investors will have in the business. Generally, where your business will be operating will decide whether the business will be in a TEA. You do not have to be in a TEA but if you are not, then the investment for each investor must be $1M rather than $500K. You should be working with a Immigration Attorney to help you in setting up everything properly and avoid denials from USCIS.

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