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How can one EB-5 project be associated with two regional centers?

Can two regional centers "co-host" one project? That is, two separate regional centers will each seek EB-5 investors for the same project (until the EB-5 project quota is filled), with the investors filing under their respective regional center. If yes, will two sets of PPM/business plans/economic analyses have to be made? Will any complications arise from this structure?

Answers

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    Steffanie J Lewis

    Immigration Attorney
    Answered on

    Through an appropriate agreement between two regional centers, two regional centers can co-monitor one project. The regional center through which each investor filed his or her I-526 retains its obligations until all I-829 petitions are approved. For a single project, there is no need for two sets of PPM/business plans/economic analyses. However, when counting the job creation for each investor, the regional centers may not double-count jobs created. Each investor''s funds, irrespective of the regional center through which he or she invested, must create directly or indirectly 10 full-time jobs.

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    Michael A Harris

    Immigration Attorney
    Answered on

    Yes, it is possible and I have seen it happen. It is similar to having two banks provide loans for the same project. But USCIS will have additional levels of scrutiny given to it.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Co-hosting is possible, but the project must use the designation letter of one regional center, not two. The project can be the result of a partnership between different legal entities (regional center and developer, or regional center and regional center), but there should only be one new commercial enterprise with one set of project documents (one "deal package").

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    I am worried about double-counting the jobs. This is an uncommon practice to say the least, and would probably be something new and unknown in the eyes of USCIS, which may result in delays, RFEs, or denials.

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    Oliver Huiyue Qiu

    Immigration Attorney
    Answered on

    There is no law against having two or more regional centers raise funds for one project. In a typical real estate project, several banks could be involved in providing financing. So why would EB-5 financing be any different? In reality, however, the project will have a challenging job to document the flow of money from multiple sources, and more importantly, the jobs credited with each investor''s funds. If that can be managed with precision, I do not see the need for two sets of everything. It is the same project, why would it need two business plans or economist analysis reports?

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    This is done, but not that often. Usually, one regional center will use another regional center designation, but only one will recruit investors. If two regional centers are both recruiting investors, you need to be careful that they are not double-counting jobs numbers.

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    Ed Beshara

    Immigration Attorney
    Answered on

    It is advisable to have one EB-5 project compliant with one regional center.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    This is indeed a complex and unusual situation, but if that is the case, you are correct in your assumption that both regional centers need to be releasing two sets of PPM and economic reports.

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