How do I invest through an EB-5 regional center?

EB-5 regional centers are essentially government-approved companies that engage in promotion of economic growth by accepting investors' monies and investing them. Each regional center has its own charter and guidelines on how projects are set up and how the related limited partnerships are organized under which these projects are operated. You will send your money to the regional center you are working with and it will organize the filing of your petition (I-526) with your attorney. Upon approval of the I-526, the regional center will eventually invest your money in a project in accordance with the terms of your investment agreement. Advisably, while these are good questions, they are better reserved for consultation with an EB-5 attorney, which can aid in the selection of appropriate regional center and investment objectives.

An experienced EB-5 immigration attorney will be able to offer you advice. Once an EB-5 regional center project is chosen, the EB-5 investor's I-526 petition is prepared and filed. Before the I-526 petition is filed, the required investment funds are usually transferred to an escrow account. Based upon the agreements the investor signs, the investment funds will be transferred to the new commercial enterprise upon receipt of the I-526 petition by the USCIS EB-5 office.

An investment in a regional center EB-5 project requires you to conduct due diligence in deciding which regional center project to invest in, go through a screening process (which usually means filling out an accredited investor questionnaire) and sign several agreements so that you can be admitted to the partnership or company as an EB-5 investor. You should consult first with an experienced EB-5 immigration attorney who will represent you in this process. The regional center will not provide one for you and your attorney should be independent of the regional center.

You need to retain an EB-5 attorney who can explain all of these things in the context of your specific goals and timelines. Briefly though, a regional center is a business with a license to sponsor projects. You invest into those projects. You submit your application and supporting documents to the U.S. Citizenship and Immigration Services.

Normally, you will enter into legal agreements with the regional center. These would include your funds being held in an escrow account and only released to the project upon a certain event, e.g. upon your application approval. The regional center will send in your application; you should fill it out and it is a good idea to retain your own attorney versed in the EB-5 process - at the beginning before you select a regional center or project.

The answer to where you send your money and how you invest in the regional center depends upon the regional center and the particular project. All of that would be made clear by the particular regional center and project. There is an initial process by which there is a determination that you are a suitable investor, which requires you to provide certain information to the regional center. You will then be given instructions as to how to transfer the minimum investment of $500,000. Once you have made your investment, you normally commence the process of having the attorney representing you and the regional center prepare your I-526 EB-5 investor petition which, once completed, is then filed on your behalf.

You pick the regional center and then you sign a bunch of business documents with them, usually making you a limited partner in the project. Based on the proof of investment with them, you file the immigration Form I-526 with supporting documents with USCIS after putting your money into the project.

The regional center operates as the general manager/partner of a limited partnership (new business enterprise) that gathers investors to invest funds to a job creating entity. The regional center will look for suitable EB-5 projects in which to invest and will act as your liaison with those projects. While your funds will initially be wired to an escrow account set up by the regional center, you are not investing in the regional center. The funds will be transferred to the actual project that will create jobs shortly after the petitions are filed, as the money must be utilized to create jobs as the project documents promise. The attorney whom you hire will prepare and file the I-526 immigrant petition, which is comprised of the source of funds tracking as well as the project/business documents obtained from the regional center, with USCIS after you fund your investment through the regional center.

You would be investing in a "New Commercial Enterprise" (or NCE) which is a company created for purposes of investing in a project. The NCE is generally managed by the regional center. To invest through the so-called "regional center process" you would generally do the following: 1. Select the project offered by the regional center (after doing your due diligence); 2. Obtain subscription documents provided by the regional center; 3. Execute the documents; 4. Have an attorney prepare your source of funds documentation; 5. transfer your investment to an escrow account designated by the regional center; 6. Once the escrow agent receives proof that your application was filed properly, your funds would be released to the NCE and then invested to the project.

The money must be invested in a project that creates jobs directly or indirectly.