What are the advantages of a government supported regional center project? - EB5Investors.com

What are the advantages of a government supported regional center project?

When selecting EB-5 regional center projects, one facility construction project came to my attention because the regional center claimed it to be a “government EB-5 project” that is supported by the state government. It sounds tempting but at the same time suspicious because most EB-5 regional center projects I know about are handled by non-government developers. What are the advantages of a government-associated regional center project versus a non-governmental one? Since the project does not specify, what could the role of the local government be playing in a regional center project?

Answers

Blake Harrison

Blake Harrison

Immigration Attorneys
Answered on

Hiring a third-party professional to conduct due diligence regarding these claims would be beneficial.

Julia Roussinova

Julia Roussinova

Immigration Attorneys
Answered on

There is no such thing as a safe government-supported regional center project. Many projects do involve some support from the municipalities or state governments; however, there is no major advantage. You need to conduct due diligence on a project you plan to invest in. You should hire professionals to do that.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

Immigration Attorneys
Answered on

That is generally baloney-there are state, city and other RCs but this means nothing. You must conduct thorough due diligence on all aspects, regardless of claims, especially on the particular project.

Daniel A Zeft

Daniel A Zeft

Immigration Attorneys
Answered on

I do not see any advantage to investing in a government - associated regional center project.

Lynne Feldman

Lynne Feldman

Immigration Attorneys
Answered on

I would suggest posing that exact question to the Regional Center involved.

Barbara Suri

Barbara Suri

Immigration Attorneys
Answered on

No special advantages to "you" that I can think of. The regional center must still conform to the Federal rules, regardless of who supports it.

Charles Foster

Charles Foster

Immigration Attorneys
Answered on

There could be advantages to a "government supported" EB-5 project if that in fact is true. Normally, if it was an entity of the U.S. or a state, that would give any investor from countries where the government plays a bigger role in society than it does here, a huge level of confidence. On the other hand as you surmised, you have to check out exactly what that means. There are Regional Center sponsored by cities and governmental entities, but those governmental entities are not necessarily financially responsible for the project. Many of those Regional Centers are set up simply to attract other EB-5 projects for their geographical area. You need to investigate and ask more questions.

BoBi Ahn

BoBi Ahn

Immigration Attorneys
Answered on

Usually gives the investors some sense of security of the legitimacy and the viability of a project when the project is either backed by or partially funded by the government. However, make you should carefully review the exit strategy (ie., return of the initial capital) to make sure that there is not any delays or prolonged period for the return.

Dale Schwartz

Dale Schwartz

Immigration Attorneys
Answered on

I would be very suspicious! Make sure it is real. Also, make sure the government unit that is involved with the EB-5 project has a good credit rating.

A Olusanjo Omoniyi

A Olusanjo Omoniyi

Immigration Attorneys
Answered on

There is no major advantage. It does not mean that projects associated with that government-supported regional centers are safer investments. In fact, there are instances where massive fraud had been committed in some government-supported regional centers. Advisably, instead of assuming government-supported regional centers are safer, investors should make sure to conduct due diligence just as they would of any regional center.

Mark AM Catam, Esq

Mark AM Catam, Esq

Immigration Attorneys
Answered on

The advantage will probably be in terms of security. Some projects are government-sponsored i.e. public highways/tolls, freeways developments and some of these projects are backed by government issued bonds. When doing your due diligence, you can easily check if these projects are state sponsored by contacting the state&#39s Economic Development agency.

Jinhee Wilde

Jinhee Wilde

Immigration Attorneys
Answered on

As you well pointed out, “government regional center” controlled by non-government developer may not be what they claim. Also, when the government truly controls things, you may have less protection as their policies or regulations may not be easily challenged if things change. You may want to read-up on Jay Peak regional center stories; Jay Peak regional center was Vermont supported regional center.

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