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Does a regional center have to own the new commercial entity for EB-5?

I was wondering how would I set up a non-profit regional center and channel investment money into the for-profit new commercial entity? Does the regional center have to own the new commercial entity, or can they be separate entities as business affiliations?

Answers

  • Avatar

    Reza Rahbaran

    Immigration Attorney
    Answered on

    Non-profit organizations are not eligible for regional center designation.

  • Avatar

    Shahzad Q Qadri

    RC Creator
    Answered on

    Please note that the non-profits are not eligible for RC designation, it has to be a for profit entity. While the RC does not have to own the entity being funded, it itself cannot be a non-profit.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    EB-5 is limited to for-profit business only.

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    Ed Beshara

    Immigration Attorney
    Answered on

    The regional center entity can be a different entity than the new commercial enterprise. The EB-5 rules are specific in stating that the new commercial enterprise has to be for profit. While regional centers can be owned by government agencies which are non- profit.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    The relationships between the entities (regional center, new commercial enterprise, job creating entity, etc.) can take many forms. For example, an acceptable relationship between a NCE and JCE is the mere loaning of the investment funds from one to the other (of course, there are also agreements in place between the entities). For a regional center, it does not have to have an ownership interest in the NCE, but whatever form the arrangement, an agreement should be in place for the benefit of all parties.

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