The Office of Economics at Southern Illinois University is considering acquiring an EB-5 regional center in southern Illinois. I would like to know what organizations are eligible to become EB-5 regional centers? Is it possible for the university to establish this regional center? Will there be any problems arising from the fact that this is a public, state university?
According to EB-5 regulations, a legal entity for profit, a state, a city, a chamber of commerce, and a university can become a regional center. That is, public entities have become regional centers. Please note that the EB-5 investors invest in a New Commercial Enterprise which has to be an entity for profit, and the Job-Creating Entity, which may receive the funds, can be a non-profit organization.
Almost any entity can qualify; however the commercial entity and job-creating entity that the regional center creates or partners with must be for-profit entities.
If SIU is a non-profit, the deal needs to be structured to meet the statutory requirements - this can often be complex.
I think you may be eligible. If economic development commissions and entire states can apply for and obtain regional center designation, a university should as well. The key is that the projects need to be for-profit, job-creating entities. Setting up and maintaining a regional center, and setting up or vetting projects, is best done with the assistance of EB-5 immigration counsel.
I do not see why you couldn't. But if you are running this regional center, you are taking on the liabilities and risks as well. Hopefully the school's charter provides accordingly.
