Why become an EB-5 Regional Center in 2025?
Becoming an EB-5 Regional Center remains a powerful strategy for raising low-cost development capital while offering foreign investors a path to U.S. permanent residency. Under the EB-5 Reform and Integrity Act (“RIA”) of 2022, the program has been reauthorized through September 30, 2027, and now includes stricter requirements around integrity, transparency, and compliance.
At the heart of the Regional Center program is an implicit agreement: foreign investors contribute funds to a new commercial enterprise; developers use those funds to complete a project and create jobs; and investors, in turn, become eligible for permanent residency (a green card) after meeting all EB-5 requirements. Central to this is the creation of at least ten jobs per investor. Given the size and duration of most development projects, it’s typically feasible to generate a sufficient job cushion to meet this requirement.
The Regional Center model supports this process by allowing the use of economic modeling to count direct, indirect, and induced jobs. Under the RIA, at least one of these jobs per investor must be a direct hire, e.g. W-2 employee, while the remaining nine can be indirect. Regional Centers are permitted to use economic multipliers to demonstrate job creation, adding flexibility and scalability to the model.
One of EB-5’s most compelling features is that the benefit of U.S. permanent residency typically offsets the need for high interest rates. As a result, most EB-5 projects are structured as low-interest loan models rather than equity plays. Investors typically accept a nominal annual return and expect repayment of their principal at the end of the investment term.
However, prospective Regional Center operators should be aware that EB-5 capital cannot be the sole source of funding for a project. If the EB-5 portion of the capital stack is too high, investors will shun the deal as this increases the overall risk to them. EB-5 funding complements other financing sources, such as senior debt, private equity, and bridge loans. USCIS requires project sponsors to demonstrate that the project can proceed even if the full amount of EB-5 capital is not raised.
How to become an EB-5 Regional Center
USCIS grants Regional Center designation through a formal application process that requires careful planning and the involvement of multiple professionals. The total cost can vary significantly depending on the service providers you choose, especially those with deep experience in preparing EB-5 petitions to meet USCIS’s rigorous standards.
Typically, applicants will need to engage the following professionals:
- Immigration counsel
- Securities counsel
- Tax counsel
- Economist
- Business plan writer
In most cases, the immigration law firm plays a central role, managing the process by coordinating with third-party providers, reviewing submitted materials, and assembling the I-956 petition for submission to USCIS. As of now, the USCIS filing fee for Form I-956 is $47,695.
Steps to Becoming an EB-5 Regional Center
Obtaining EB-5 Regional Center designation from USCIS involves several steps, and both the required documentation and associated costs will vary depending on the preparedness of the project.
In addition to filing for Regional Center designation (Form I-956), applicants are strongly encouraged to submit a project request that could feasibly be used for filing a Form I-956F, Application for Approval of Investment in a Commercial Enterprise. This form allows USCIS to review the investment structure, economic methodology, and offering documents in advance of investor petitions.
When approved, the project becomes an exemplar, meaning that a project is pre-approved for future investor filings without having to establish its merits repeatedly.
Each new project under the Regional Center must be submitted separately to USCIS for approval via a Form I-956F. Importantly, investor petitions (Form I-526E) cannot be filed—and offerings should not be marketed—until the Regional Center has been formally designated and USCIS has issued a receipt notice confirming that the project application (Form I-956F) has been properly filed.
An important note: All individuals involved with the Regional Center and its projects are required to submit biometrics and undergo a background investigation. It is necessary to identify every natural person who holds a position of substantive authority within the Regional Center. This includes anyone responsible for making operational or managerial decisions related to the pooling, securitization, investment, release, acceptance, control, or use of EB-5 capital from immigrant investors. Owners, officers, general partners, and other individuals with such decision-making authority must be disclosed in the Form I-956F petition and are required to submit Form I-956H, Bona Fides of Persons Involved with Regional Center Program.
Below, we outline the key steps and supporting documentation required for each phase of the Regional Center application process:
- Define the Scope of the Regional Center
One of the most critical early steps is to clearly define the intended geographic scope and economic focus of the Regional Center. This includes identifying the region it will cover, outlining the types of projects it plans to sponsor, and establishing the business organization’s corporate structure, operational model, EB-5 investment amount, and proposed capital stack for each project. This strategic planning will guide all subsequent filings and compliance obligations. - Engage Qualified Professionals
Securing experienced EB-5 professionals is essential. These may include immigration attorneys, securities counsel, tax advisors, economists, and business plan writers. Together, they will prepare the documentation required to submit a complete and credible Regional Center application to USCIS. - Develop a Compliance Framework
The RIA introduced new and rigorous compliance obligations for Regional Centers. Organizations must develop detailed protocols to meet USCIS’s auditing, reporting, and certification requirements. These should be planned and documented prior to filing. - Establish Operational and Oversight Systems
Create systems for ongoing management, compliance monitoring, and reporting. This includes preparing to file required annual reports, pay mandated fees, and conduct internal audits. Regional Centers must also budget for fraud prevention measures such as site visits and third-party investigations to remain in good standing under RIA requirements. - Gather Your Documents
A successful Regional Center application requires the submission of a comprehensive set of documents that demonstrate the viability, compliance, and credibility of both the Regional Center and its associated projects.
Here is a non-comprehensive list of documents:
- Form I-956
- Regional Center Operational Business Plan
- Corporate Structure agreements for ownership and management of the Regional Center
- Corporate documents (Corporation/LLC/LP) registration documents, Tax ID number, bylaws, Operating Agreement, or Limited Partnership Agreement
- Project business plan
- Project economist report that includes the job creation analysis
- Compliance Manual with comprehensive policies and procedures
Please consult with your professional advisors to tailor the requirements to the specific Regional Center and its projects. Each document must align with USCIS requirements and reflect the standards set by the RIA. Preparing these materials in a clear, well-organized format will significantly improve the likelihood of a timely and favorable adjudication.
Assembling Your Team of Experts
Your team will be the foundation of a successful EB-5 Regional Center application. Given the complexity and regulatory requirements of the program, it is critical to engage professionals with specialized expertise in their respective fields. Together, they will ensure your submission is thorough, compliant, and well-supported. This team typically includes a business plan writer, economist, securities counsel, and immigration counsel—each playing a vital role in preparing key documents and guiding you through the approval process.
Retain Experienced Immigration Counsel
Securing immigration counsel with specialized expertise in EB-5 Regional Center matters is essential to navigate the complex USCIS requirements and procedural intricacies throughout the application process. Immigration counsel will guide the preparation and submission of the Regional Center designation petition (Form I-956) and the related project approval filings (Form I-956F), ensuring all documents comply with USCIS standards.
Beyond the initial filings, immigration counsel plays a crucial role in advising on investor petitions (Form I-526E), responding to Requests for Evidence (RFEs), and assisting with the eventual removal of conditions (Form I-829). Counsel ensures that all aspects of the petition—from documentation to timing—are managed effectively to minimize risk and improve the likelihood of approval.
Given the evolving regulatory environment under the RIA, experienced immigration attorneys help Regional Centers and investors maintain compliance with updated rules, including those related to source of funds, job creation requirements, and reporting obligations.
Engage a Qualified EB-5 Business Plan Writer
An experienced business plan writer with a strong understanding of EB-5 compliance requirements should be retained, as the business plan is one of the most critical documents in a Regional Center filing. USCIS evaluates business plans based on the standards set forth in the AAO precedent decision Matter of Ho, which requires a comprehensive and credible presentation of the enterprise.
The business plan must include a thorough market analysis, identifying competing businesses and evaluating their strengths, weaknesses, products, and pricing structures. It should define the target market and prospective customer base of the new commercial enterprise.
The plan should also list all required permits and licenses, and, if relevant, describe the manufacturing or production process, including materials needed and sources of supply. Any executed contracts for procurement or distribution should be included.
Additionally, the business plan must outline the company’s marketing strategy, including pricing models, advertising approaches, and customer service plans. It should describe the business’s organizational structure, key personnel experience, staffing needs, job descriptions, and a hiring timetable.
Finally, the plan must present well-supported financial projections—sales, costs, and income—with clear justifications. Above all, the business plan must be credible, consistent, and sufficiently detailed to support the economic assumptions and job creation estimates central to the EB-5 petition.
Hire an EB-5 Economist to Prepare the Economic Impact and Job Creation Report
An experienced EB-5 economist must be engaged to produce a comprehensive economic impact analysis and job creation report for each project sponsored by the Regional Center. This report is a cornerstone of the EB-5 application, especially for Regional Center projects, which are permitted to count indirect and induced jobs in addition to direct employment.
Indirect jobs—those created through downstream economic activity—can be counted even if they fall outside the Regional Center’s geographic boundaries, provided the analysis relies on reasonable economic methodologies. To meet USCIS requirements, the economist must demonstrate by a preponderance of the evidence that the project’s capital investment and direct hiring will result in the projected number of qualifying jobs.
In addition to job creation modeling, the economist is also responsible for determining whether the project site qualifies as a Targeted Employment Area (TEA). This includes preparing the required unemployment data analysis to support TEA designation under the current USCIS guidelines.
This role is especially critical given the heightened evidentiary standards under the RIA. USCIS now requires that at least one of the ten jobs attributed to each EB-5 investor be a direct, W-2 payroll employee. Because the standards are complex and subject to scrutiny, it is essential to work with an economist who has specific experience with EB-5 program requirements and USCIS adjudication practices.
Retain Experienced EB-5 Securities Counsel
Securities counsel with specific experience in the EB-5 program must be retained to draft the offering documents, including the Private Placement Memorandum (PPM) and Subscription Agreement. These documents must not only comply with applicable federal and state securities laws, but also align with USCIS requirements, particularly the critical “at risk” investment standard.
To qualify under the EB-5 program, the investor’s capital must be fully committed and placed at risk for the purpose of generating a return. Mere intent to invest is not sufficient. The offering documents must clearly reflect that the investment is subject to both potential gain and loss, without any guaranteed return or contractual right to repayment.
Any provisions allowing for a put, call, or redemption of the investor’s funds prior to final adjudication of the Form I-829 (the petition to remove conditions on permanent residency) may result in denial of the EB-5 petition. As such, language guaranteeing return of capital or minimizing risk can render the offering noncompliant.
Skilled EB-5 securities counsel should also advise on additional complexities such as redeployment of capital if funds are returned before the investor’s sustainment period ends, and ensure alignment between offering documents, the business plan, and USCIS regulations throughout the process.
Annual Maintenance of a Regional Center
The RIA introduced new annual financial and compliance obligations for all designated Regional Centers.
Each Regional Center is required to:
- Pay an annual Integrity Fund fee by October 31. The fee amount is based on the number of investors sponsored.
- File Form I-956G, the Regional Center Annual Statement, which reports activity and compliance for the prior fiscal year. This form carries a $4,470 filing fee.
These ongoing requirements support USCIS oversight and enforcement, ensuring that Regional Centers maintain integrity and transparency in their operations.
A Regional Center must implement and maintain comprehensive policies and procedures to ensure ongoing compliance with the EB-5 program’s strict regulatory requirements. This includes continuously monitoring its investors and tracking job creation metrics for each sponsored project. In addition to meeting the standards set forth in the RIA, Regional Centers must comply with all applicable reporting obligations to USCIS, the U.S. Securities and Exchange Commission (SEC), and relevant state and local securities regulators.
To further safeguard program integrity and prevent fraud, USCIS regularly conducts site visits to Regional Centers and EB-5-funded businesses. Each Regional Center is responsible for cooperating fully with these inspections, including providing any requested documentation or information related to the site visit and project operations.
Conclusion
Obtaining EB-5 Regional Center designation can be a daunting process, possibly spanning a couple of years. Still, there are qualified and experienced EB-5 professionals who can help you through the process from A to Z. They can and will advise you on your road to EB-5 success.
Do you want to create your own EB-5 regional center? Contact us today at info@eb5investors.com
Related reading
Author’s note: This article is intended to give a general overview of the new EB-5 law under RIA. It is not meant to be a comprehensive treatise. Please consult with your appropriate professionals to get the complete picture and any updates as the situation is currently very fluid and changes are anticipated frequently and soon. There will be clarifying and expanding regulations, forms, policy statements and court decisions over at least the next 12 months until the RIA new process settles down and becomes clearer on so many issues. There could even be additional legislation.
