How should the contract between regional centers and investors include terms regarding a potential EB-5 sunset?

This needs to be disclosed in the private placement memorandum so the investor is clear as to the risks.

Yes, the contract between the regional center and investors should include all necessary terms. Particularly, it should spell out what would happen when the pilot project sunsets. There is no general checklist. Agreements can vary on the scope and terms governing pilot project. In fact, there is a likelihood that if you have to compare two or more agreements, the governing terms are likely to be unique from one agreement to another. Thus, investors are urged to make sure their interests are protected. Advisably, consult an EB-5 immigration attorney who can help go over the issues related to pilot project of any agreement that is under consideration.

The contract between the regional center and the investor does not need to include provisions about the sunset of the EB-5 regional center program. However, these provisions should be included in the contract.

The obligations of the regional center to the investor would normally be set forth in a variety of documents, including the private placement memorandum. Most individual investors would not have the option of negotiating their own special terms and conditions. You have to review the documentation with your attorney to determine the obligations of the regional center project, should the EB-5 program sunset. Remember, if the program sunsets, those individuals who normally filed the EB-5 petition on Form I-526 would still be grandfathered. If the program sunsets, normally it would just prevent future investors from filing under the program. Furthermore, no one really anticipates the EB-5 program will sunset.