We are an Architecture firm getting into development and understand we can access funding by becoming an EB5 project. In my research I and getting confused with the difference between a Project and a Regional Center. How do we get a Project approved?
The Regional Center is an entity that is designated by the USCIS to administer EB-5 projects. An EB-5 project would any for profit development project that will create the jobs needed to satisfy the job creation requirement. Foreign nationals will invest in the project and the Regional Center is responsible for ensuring that the projects and the investors/investments are compliant with the EB-5 regulatory criteria. Some organizations seek Regional Center designation and can use the Regional Center for their projects. If there is only one project, then other options can be considered including partnering with an existing Regional Center.
The epicenter of EB 5 is US job creation. This is done either on a standalone basis where the jobs are direct and those which comprise either a mix of direct and indirect jobs or simply the latter. A ''project'' may be easier to have reviewed by USCIS if the jobs are direct, however the benefit to a regional center which takes into account an entire area may be more long term beneficial. We recommend that you study our website for more information.
A Regional Center is an independent commercial entity that received certification from USCIS to have that designation. EB-5 project is an actual project that could receive investment. Each Regional Center could receive one or more projects. There are two ways to invest in the U.S. under the EB-5 program: 1. Own and Operate Your Business: This method requires an investment of $1 Million U.S. currency and that the investment directly creates at least 10 full-time jobs for U.S. workers within two years; or 2. Invest in a Certified Regional Center: This method still requires an investment of $500,000 or $1 million and the creation of at least ten (10) permanent, full time jobs for U.S. workers, but the jobs created may be indirect as well as direct jobs.
Becoming a Regional Project is a long, and complicated legal process wherein the ultimate goal is for USCIS (US Immigration) to approve you as a "Regional Project" wherein by virtue of accepting a minimum of $500,000 of investment the government issues the foreign individual a Green Card. In order for you to qualify to become a Regional Project, you have to have substantial Capital (several millions) of your own, and have the capacity to employ allot of US employees. You would then attract foreign money. Rule of thumb is that for each foreign investor, you generate 10 jobs; some of these jobs may be shared with other investors. Again, this is very brief overview and I just want to give you an idea of what a "Regional Project" is.
A "Project" on the other hand is where a foreign individual may invest in a company (usually smaller) a capital of $1,000,000 or in the case of some states where there is very low employment rate, a $500,000 investment may qualify; so the location of your company would determine the amount of investment; the foreign individual would then have to prove that they have generated 10 full time jobs to US employees, etc. . This is a snap shot of what a "Regional Project" and a "Project" is, and you need to consult a qualified US EB-5 Attorney to further explore pursuing either. I''d be happy to go over these and assist you with figuring out what may or may not work for you and your Company.
An EB-5 project is a job-creating entity that complies with federal law and regulations governing the EB-5 Program. A regional center is an entity that complies with federal law and regulations governing the EB-5 Program, covers a limited geographic area, may show the creation of indirect and induced jobs, and is approved by USCIS to host one or more EB-5 projects.
If it is not a regional center, you must invest $1 Million and create 10 jobs.
An EB-5 project is an active investment where funds are put at commercial risk and 10 US jobs are created per investor that qualifies the investor(s) for green cards for themselves, their spouse and children under 21. The investor must be actively involved in running or managing an aspect of the investment. Normally, $1,00,000 is required of the investor. An EB-5 project is a direct investment of normally $1,000,000 per investor in which the investor must be actively involved in management or policy-making. A Regional Center has received United States Citizenship and Immigration Services'' permission to pool numerous investors'' monies and there is no need for the investor to be actively involved. Regional Centers can also be located in areas where the investment need only be $500,000, if the area is rural or has a high unemployment rate of 150% above the national average. En EB-5 project must be approved by the United States Citizenship and Immigration Services as part of the investor''s EB-5 green card petition.
There is no such kind thing as EB5 project. A small project will not be qualified for an EB5 designation. The only way to attract foreign investor (each with $500,000) is to set a regional center, which is a very big project.
A Regional Center Designation is issued by the USCIS.The RC allows an organizational infrastructure to support a loan model and indirect employment creation. The EB5 project can be a US corporation pursuing business activities which is in need of investment fusing to finance the project. Therefore the project may be referred to as a EB5 Regional Center Project.
The best way to understand the difference between a project and a regional center is that a regional center is a special purpose entity that obtains approval from USCIS in order to be able to present a viable project to investors. An EB5 project is geared around the EB5 rules allowing an investor to obtain a green card by creating 10 permanent jobs.
A regional center is just a designation that you can apply for so that projects within the geographical boundaries and industries that your regional center was approved in can count indirect and direct jobs. If you have a regional center, you can submit a project for exemplar approval. Otherwise, you first I-526 typically is your project approval. Other than above, there''s really no formal pre-approval process. You just take your chances.
There is only approval for regional centers, a project would be an individual filing. Please call to discuss the process and options.
Simply stated, an EB5 Project is a project that a foreign nation can invest in, that will allow that investor to apply to USCIS for a conditional and then permanent green card. There are numerous conditions and thresholds that must be met (which I am sure your research has discovered), but this is the simplest way to describe an EB5 Project. A Regional Center is a private entity that has been approved by USCIS to offer EB5 Projects for investment, so long as that EB5 Project is within the Regional Center''s pre-approved industries and geographical boundaries. For example, a Regional Center may be approved by USCIS for projects in the hospitality industry within the Dallas-Fort Worth area. The EB5 Project would be the actual hotel that the Regional Center intended to build. In a Regional Center application, you would describe your EB5 Project, and you may obtain Regional Center approval based on this EB5 Project - but your EB5 Project is still not technically "approved." When your investors submit their I-526 applications for a conditional green card, the EB5 Project will be reexamined.
A Regional Center is the governing organization that may have one or many projects. You, as an organization, need to become a Regional Center. Then, within your Regional Center you would develop and have many projects. Your Regional Center does not have to be in a targeted Employment Area (TEA), but each project must be in a TEA.
They are the same. In order to become a regional center, you have to have an attorney prepare the appropriate offering documents, have economic impact studies conducted, etc. We handle all of these steps.
DISCLAIMER: 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.