Regional Center Ownership vs. Leasing: Why Time-Sensitive Projects Should Opt for the Latter 

By David Hirson, Claudia Rea Jimenez, Karla Samayoa 

The EB-5 Immigrant Investor Program continues to be one of the most compelling immigration and economic development tools available in the United States. For high-net-worth individuals seeking U.S. permanent residence, it offers a pathway that also contributes significantly to the American economy.

For developers, it provides an alternative source of capital, often at a cost less than traditional financing sources.  For the U.S., it offers foreign direct capital investments that contribute to the expansion of the domestic economy and the creation of jobs at zero cost to the U.S. taxpayers.  

Since the passage of the EB-5 Reform and Integrity Act of 2022 (RIA), over $8 billion in foreign capital has been pooled to support U.S. businesses and job creation. The benefits are manifold and reflect positively on the impact foreign capital has brought to the U.S. 

Under current rules, investors are eligible for permanent residency by investing a minimum of $800,000 in a Targeted Employment Area (TEA) or $1,050,000 in a non-TEA. To qualify, the investment must create at least ten full-time jobs for U.S. workers. While the premise is straightforward, the process of launching a compliant EB-5 raise is anything but. 

THE CENTRAL ROLE OF REGIONAL CENTERS  

Since the inception of the Regional Center Program in the early 1990s, these USCIS-designated entities have served as a vital conduit for EB-5 capital. They allow for pooled investments, indirect job creation, and large-scale project financing. When Congress enacted the RIA, it further cemented the necessity of regional centers for projects involving multiple investors.  

The new law drew a hard line: while individual investors can still pursue EB-5 through direct investment, raising capital from a group of investors now requires regional center sponsorship. This shift effectively removed the option for pooled direct investments, channeling all such raises through regional centers.  

NOTABLE OBLIGATIONS FOR ALL EB-5 PROJECTS, LEASING OR OWNING  

Whether the Regional Center is owned or leased, certain obligations apply to every EB-5 project. These include engaging a qualified fund administrator or arranging for an annual CPA audit conducted under GAAP standards; complying with USCIS’s biannual “TEA letter” updates; and filing the annual I-956G form.  

Regional Centers must also pay the Integrity Fund fee (prorated for leased centers), prepare for mandatory United States Citizenship and Immigration Services (USCIS) inspections every five years, and ensure proper site inspections—either of the project itself or of the Regional Center—by a qualified professional.  

Leased and owned regional centers must consider the cost of filing the EB-5 project application (Form I-956F). This filing is a separate expense from the initial regional center designation. It can reach up to $150,000, depending on factors such as service provider fees, the size of the offering, and the project’s complexity. 

Further consideration must be given to the increased cost of EB-5 capital to pay for potential agent commissions where applicable. Foreign migration agents often request an “administrative fee,” paid by the investor in addition to the principal investment amount. While these fees are intended to cover project-related expenses, they may also be used—if properly disclosed through the Private Placement Offering Memorandum (PPM) and Form I-956K, Registration for Direct and Third-Party Promoters—to compensate foreign agents for successfully referring investors. Many agents also request an ongoing “trail” payment based on invested capital, which cannot be drawn from the principal investment itself. These additional fees represent a meaningful cost consideration for EB-5 capital, whether the Regional Center is owned or leased. 

Finally, if investor solicitation takes place in the U.S., securities laws may require engaging a licensed broker-dealer when intermediaries receive transaction-based compensation. Rule 506(c) permits general solicitation but requires the issuer to take reasonable steps to verify that purchasers are accredited investors. Rule 506(d) contains disqualification provisions that can bar an offering where specified bad-actor triggers exist. These rules are technical and fact-dependent, so sponsors should consult a qualified securities attorney to determine which exemptions apply and whether broker-dealer involvement is required. 

LEASING VS. OWNING: STRATEGIC CONSIDERATIONS  

Choosing between leasing a regional center or establishing a new one depends on several project-specific factors. Developers must assess their level of EB-5 experience, the size and number of anticipated raises, how quickly they need to get to market, and whether they intend to stay in the EB-5 space for the long haul.  

For time-sensitive projects, this decision can be consequential. As of August 2025, approximately 80% of I-956 regional center applications are being processed between 4 and 18+ months.⁴. That means a high percentage of cases are taking over 12 months for adjudication.  taking longer — and for developers facing tight timelines, that uncertainty can pose a serious risk.  

THE REGULATORY BOTTLENECK: TIMING MATTERS  

A key procedural limitation is that developers cannot file their project’s I-956F form — which identifies the specific investment offering — until their I-956 regional center application is approved⁵. This delay creates a bottleneck, as the ability to raise EB-5 capital hinges on I-956F filing. Once the I-956F is submitted to USCIS, EB-5 capital raising can begin within ten days or upon receipt of the filing receipt notice, whichever comes sooner.  

In contrast, leasing a regional center can bypass this delay entirely. When a developer partners with an existing USCIS-approved regional center, the I-956F can be filed immediately, assuming other requirements are in place. That speed-to-market advantage can make or break a time-sensitive project.  

UNDERSTANDING THE LEASING MODEL  

Leasing a regional center can be likened to entering into a franchise agreement. Just as someone building a McDonald’s must pay licensing fees to the franchisor in exchange for branding, systems, and support, EB-5 developers often pay an upfront fee and an annual percentage of raised capital to the regional center sponsor. Unlike McDonald’s, though, the regional center does not control business operations beyond monitoring compliance with immigration and SEC regulations.  

This arrangement allows developers to focus on their projects without having to build out the back-end regulatory infrastructure that EB-5 compliance requires. Fees vary but typically include a one-time sign-up payment for the license and an annual charge based on funds raised. Additional annual USCIS compliance and legal fees may be prorated when shared with other projects — further savings, no matter how small.  

THE SCOPE OF SUPPORT: WHAT REGIONAL CENTERS PROVIDE  

The level of support provided by regional centers can vary significantly depending on their structure and ownership. Some offer only basic sponsorship, while others take a full-service approach that includes strategic guidance, industry connections, and introductions to foreign agents who can help source investors. 

Full-service regional centers may assist with deal structuring, analysis of investor trends, and referrals to specialized providers such as immigration attorneys, economists, and fund administrators. They may also handle key operational tasks, including annual audits, compliance reporting, and preparation for USCIS inspections, required every five years. 

Additionally, some regional centers offer to source investors on behalf of the owned or controlled entity known as the New Commercial Enterprise (NCE). In such cases, the regional center actively participates in investor marketing efforts, leveraging its established network of migration agents, marketing firms, and industry contacts to attract qualified EB-5 participants. This arrangement can provide significant advantages to project sponsors who do not have their own investor outreach infrastructure. However, it may also involve additional fees, commission structures, and regulatory compliance obligations under both USCIS and securities laws. 

The expanded obligations under the RIA have made regional center operations far more complex. Many developers are rightly wary of taking on those responsibilities themselves. Choosing a regional center for sponsorship requires careful deliberation of anticipated needs, benefits, and obligations. 

WHY SOME DEVELOPERS STILL CHOOSE TO OWN  

Despite the regulatory hurdles and long wait times, some developers prefer to establish their own regional center. Ownership offers freedom: the ability to file at their own pace, to sponsor multiple projects, and to control branding and investor messaging.  

Over time, a well-run regional center can also become a valuable revenue-generating asset. Licensing projects under their umbrella, developers can collect fees of their own and establish a long-term presence in the EB-5 industry. This strategy may be attractive to developers planning multiple future raises or those with the resources to withstand longer timelines and higher upfront costs.  

Branding also plays a role. When developers control their own regional center, they can position themselves as committed stakeholders in the EB-5 program. That credibility can help attract investors, particularly in a market where trust and compliance matter.  

THE HIGH COST OF ENTRY  

The choice to build a regional center should not be made lightly. The I-956 application USCIS filing fee alone currently costs $47,695. (See Temporary Reduction in USCIS Filing Fees below). It requires extensive documentation, including hypothetical business plans, economic impact studies, and corporate governance materials—the complexity and cost increase when a developer seeks approval for multiple counties or states.  

Additionally, if the geographic coverage is noncontiguous — for instance, spanning Oregon and California — a separate I-956 application and fee must be submitted for each area.  Another $47,695 filing fee for each project! Developers hoping to operate in multiple states, such as California and Texas, will need to secure two regional center approvals per USCIS practice. None of these approvals is guaranteed.  

Even after approval, any significant change to the regional center — such as adding counties or replacing a principal — will trigger the need for an amended application, again requiring a $47,695 filing fee.  

Temporary Reduction in USCIS Filing Fees 

A federal court struck down the April 2024 fee increases in November 2025 (Moody et al. v. Mayorkas). Filing fees have reverted to pre-April 2024 levels: 

• I-956: Now $17,795 (not $47,695) 

• I-956F: Now $17,795 (not $47,695) 

Important: DHS has proposed new fees under public comment (deadline December 22, 2025), so fees may change again soon. 

THE LEGISLATIVE WILDCARD  

Perhaps the most significant risk to owning a regional center is the program’s uncertain legislative future. While the RIA reauthorized the Regional Center Program through September 30, 2027, only filings received before September 30, 2026, are statutorily protected (“grandfathered”) if the Regional Center Program is not reauthorized. What happens to applications submitted after that date remain unknown, and Congress has not yet acted to clarify or extend the program beyond 2027. 

 Historically, when the regional center program previously sunset, all cases came to a complete standstill, and adjudication of actions could not be continued until the reauthorization of the regional Center program by Congress.   

This sunset clause introduces uncertainty. For developers investing significant resources in establishing their own regional center, the risk of a lapse in authorization could translate into lost time and sunk costs. Leasing, on the other hand, allows for more nimble adaptation to regulatory changes.  

LEASING AS A STRATEGIC SOLUTION  

For developers who are launching smaller or one-time projects, leasing offers a faster, more cost-effective way to participate in the EB-5 program. Without the need to wait over a year or invest around $100,000 in application, legal, and supporting document fees, leasing allows for quicker market entry and leaner budgeting.  

It also reduces regulatory exposure. The RIA’s expansion of compliance duties — including mandatory annual project audits and the specter of USCIS inspections — has raised the bar for operational standards. Many project sponsors would prefer to outsource these burdens to experienced regional center operators.  

Still, leasing is not without tradeoffs. Developers must share control over investor reporting, compliance policies, and sometimes even branding. Revenue sharing is part of the bargain, and the terms of the agreement should be negotiated carefully.  

A TAILORED APPROACH TO EB-5 STRATEGY  

The decision to lease or own a regional center is not one-size-fits-all. For developers committed to building a long-term EB-5 platform and who can absorb the upfront costs and regulatory risk, forming a new regional center may pay dividends down the line. These are typically developers with multiple future projects, deep pockets, and a strong desire for autonomy.  

On the other hand, developers seeking a streamlined, lower-risk way to access EB-5 capital — especially those with immediate funding needs or limited experience in the space — may find that leasing is the smarter move.  

Recommendations 

Project Type	Recommended Strategy
Time‑sensitive, quick raise, single project	Lease – immediate filing and fewer delays
Multiple EB‑5 projects, long‑term platform plans	Own – control and future licensing potential.
First‑time sponsors or limited compliance capacity	Lease – outsource regulatory burden

WEIGHING THE OPTIONS  

In a complex and fast-evolving EB-5 landscape, there is no universally correct answer to the lease-vs-own question. Success depends on aligning strategy with circumstance. A project’s timeline, risk profile, available capital, and broader goals must all be considered in determining the right approach.  

Whether a developer opts to build a regional center from the ground up or to partner with an established platform, sound legal advice and compliance foresight are essential. In a regulatory environment where timelines shift and legislation remains fluid, flexibility and informed decision-making are the keys to success. 

DISCLAIMER: The views expressed in this article are solely the views of the author and do not necessarily represent the views of the publisher, its employees. or its affiliates. The information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal, immigration, and financial experts prior to participating in the EB-5 program Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public; do not include confidential information in your question.