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How does a business owner use an EB5 Regional Center?

How do you go about using an EB5 Regional Center to fund a project, without becoming designated as a regional center yourself? I have a business in Colorado and have researched the EB5 program. Once I find a regional center whose designation I may use, who does the reporting to USCIS and do I have to do a business plan and economic impact study to work through the regional center. What does the Regional Center have to provide the USCIS with if a third part project is using its designation?

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    In general you will use the umbrella of the regional center to utilize the indirect and induced jobs your project will create. The terms of the relationship would depend on whether the RC is acting as a finance arm or taking equity in your project. All project accreditation rules would still be followed, business plans and econometric studies submitted. The regional center is responsible to USCIS for compliance, however you would be providing the required information. It would be prudent to have competent counsel to guide you through the steps and negotiate the terms with the regional center. For further information please contact Rahbaran & Associates.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    You will need to inquire with Regional Centers in which you may be interested. Generally, a licensing agreement will be necessary to use a Regional Center. Another option is to do a stand-alone project without the use of a Regional Center as long as you comply with EB-5 program requirements.

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    Jor Law

    RC Creator
    Answered on

    To use a third party RC, you would just negotiate terms with that RC and build them into your structure. There are various ways to do it, but a simple contract whereby they agree to act as your RC and fulfill RC duties could be sufficient. The RC will generally still have all of the RC duties, but since you may have better access to knowledge, the RC may be forced to rely upon your reporting to them first. A business plan and economic impact study is generally required for EB-5, so someone will have to do it still. It really doesn''t matter who does it and a RC may require that you pay for the studies (though they may want to review it to ensure quality).

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    Mahsa Aliaskari

    Immigration Attorney
    Answered on

    It is advisable to also consider the option of pooling together investors for direct investment if the business will generate 10 direct jobs per investor. If you have already reviewed that option and decided that your capital raise will require the use of indirect and induced jobs to ensure you satisfy the job creation requirement per investor, then you want to make sure you conduct proper review and due diligence of the Regional Center and its principals, as well as solidify an agreement where your project will be housed under an existing RC. You will need to prepare and provide a business plan and economic report directly with service providers you select. The project receiving the funds will need to provide updates, information and documentation needed for each investors I-526 filing and later for the I-829 filings. The RC will advise you about the information and documentation they will need for their annual compliance filings with USCIS, which relate to the investment and job creation activities.

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    Ed Beshara

    Immigration Attorney
    Answered on

    Every case is different.The questions you are requesting definitely require the services of a qualified and experienced EB-5 Attorney. The requirements of the Regional Center and EB-5 project have to be in compliance with the EB-5 rules and policies.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    You are not required to work through a Regional Center. A stand-alone project will work for EB-5 as well and in many ways is much easier. Feel free to call me to discuss.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    It is the regional center's responsibility to do the reporting to the USCIS. If the regional center knows what it is doing, it will put these requirements in writing and make it part of the deal with you, that you have to provide them with certain data and documentation they need to report to the USCIS. Mostly, it has to do with number of investors, amount of investment and most importantly, job creation (depending upon the economic impact study, you will have to provide verifiable data as the input for the economist to calculate indirect job creation).

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    Lei Jiang

    Immigration Attorney
    Answered on

    You need to talk to the regional center to see whether you can utilize it and how to do it. Business plan and economic report are needed for immigration purposes.

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    Michael A Harris

    Immigration Attorney
    Answered on

    You will need to enter into a licensing agreement to rent a regional center. The regional center that you seek will need to have the industry and geographic area approved for your desired business project. Each regional center is different in the costs that you may have to pay; some will require an upfront signing fee with or without a combination of a portion of subscription fees each investor may be assessed above their $500,000-$1,000,000 capital investment. Also, some regional centers may ask for a percentage of the total capital raise being funded through their center. Otherwise, you will need a comprehensive business plan for your project; depending on each center, you may need to re-evaluate the economic impact study multipliers to verify that they are up-to-date. Hence a new economic impact study may be advised. For more information, please feel free to contact me.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    There are several ways, but the most common way is to enter into a licensing agreement with an existing RC. You will still be required to do a economic report and business plan. The RC is generally responsible for the compliance and it will set parameters as to when and what information you need to provide.

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