What are the financial requirements for applicants seeking to form an EB-5 regional center? Is a financial statement required?
A comprehensive business plan with credible projections is required; financials are usually part of it. You should consult an experienced EB-5 immigration attorney knowledgeable in regional center formation. Generally, it involves a team of professionals, including a business attorney, securities attorney, economist, immigration attorney, etc.
Besides professional and application fees, a regional center should be able to support structures for reviewing, overseeing, and assisting its sponsored projects. When applying, proof of capital invested in the regional center entity itself is not actually required (which is an interesting thing come to think of it). Regional centers may be required to make substantial financial contributions in the form of "integrity fees" and filing fees in the future.
There are substantial requirements to form an EB-5 regional center, including financial requirements, the need to describe the proposed project or exemplar of same.
There is no specified amount under the statute, but to have an application accepted there should be a substantial amount of capital committed to the formation of the center. USCIS needs to see that the principals are seriously committed to making their venture successful, as well as providing potential investors with confidence in the venture.
A comprehensive business plan is required and a financial statement is only a part of that. Forming a regional center is very complicated legal work, and a team of lawyers and financial experts, and economist(s) will be required.
While in the past financial ability was sometimes an issue when seeking regional center certification, recently this has not been an important requirement. However, a bill H.R. 5992 has been introduced, which will introduce extensive integrity provisions possibly requiring regional centers to present extensive financial documentation, and to undertake audits. It is therefore likely that financial statements, or other evidence of financial viability may be required.
There are no financial requirements per se, but like any business, you should be able to produce a sustainable business plan to include compliance and good corporate governance. This ought to include appropriate insurance and funds to meet other requirements under the legislation that will likely follow. You will likely need to demonstrate some level of solvency and non-involvement by non-U.S. entities as well. A properly constructed regional ccenter is not cheap to form, and the filing fee is substantial.
Add your comment
Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook name, photo & other personal information you make public on Facebook will appear with your comment.