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What regional center fees can investors and developers expect?

Are regional center fees for an EB-5 investor a one time occurrence or yearly during the life of the investment? When are these fees supposed to be paid? Also, what are the typical fees a developer pays to the regional center?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    The regional center syndication or subscription fee is generally a one-time fee payable by EB-5 investors. This type of fee should not be charged against an investment amount. All fees must be disclosed in the offering documents of a particular project. Developers may have other fees subject to the agreements with a regional center.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Investors often pay administrative fees in the amounts of $20,000-$60,000 for administrative costs like marketing, attorney''s fees, and other items that should be disclosed in your subscription documents. For projects, they may "rent" a regional center''s designation or pay for management services.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Regional center fees for an EB-5 investor typically are a one-time occurrence, usually in the form of a syndication fee or administrative fee. The regional center or developer may have other fees/costs that they receive from the profits of the EB-5 investment project, but these should be disclosed in the offering documents. An EB-5 investor should carefully review all documents and agreements with legal counsel to make sure the fees are clear and reasonable. No project fees or costs should come out of the EB-5 invested capital. These fees are subject to negotiation and require the agreement of the parties involved; the EB-5 laws and regulations do not address this issue.

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    Oliver Huiyue Qiu

    Immigration Attorney
    Answered on

    A regional center is born through the blessings of the federal immigration agency, functions under the watchful eyes of SEC, and benefits in a world of exemptions from general rules. Naturally it should expect various strings attached and costs associated with such. At the beginning, a would-be regional center has to pay fees to USCIS, business plan writers, economists, immigration and securities attorneys. When recruiting foreign investors, most regional centers will provide financial incentives for migration agents. Then on an annual basis, a regional center files a compliance report with USCIS. With each new project and/or material changes in the original plan, the cycle starts again. Although rare, at least USCIS has also recently indicated an interest of unannounced visits to regional centers, hence more compliance. A regional center is not for a faint-hearted, but the benefits would be huge, if all goes well.

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    John J Downey

    Immigration Attorney
    Answered on

    This is on a case by case basis. Just make sure all your agreements are decided before you invest and that they are in writing.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    Most of the regional Ccenters will charge the investors a one time administrative or syndication fee of $50,000 to higher, paid when you sign up. This fee is to pay lawyers, economists, etc. to get their projects EB-5 compliant, as well as paying a finder''s fee or commission to the immigration brokers/agents overseas for finding investors.

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    Anthony Korda

    Immigration Attorney
    Answered on

    The answer generally depends on the specific regional center and/or project concerned. Most EB-5 regional center projects charge an administrative fee of between $35000 and $50000. This is usually a one-off payment due at the time of subscription. Investors are not generally required to pay annual fees. The fees paid by the developer to a regional center will depend on their agreement and may include an annual fee per investor, a percentage of the investment amount or a combination of the two.

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