EB-5 Regional Centers

An EB-5 Regional Center is designated by USCIS to sponsor projects for immigrant investors seeking U.S. green cards through the EB-5 Immigrant Investor Program.  Regional Center play a central role in the EB-5 industry, basically the license needed to raise Eb5 funds in laymen terms.  These Regional Centers sponsor various projects; but remember, it’s just the license that is needed.  The entity raising the funds and managing the deal could be any group.

So its important to check out a few things to do your diligence:

5 Key Things Investors Should Consider When Choosing an EB-5 Regional Center

1. Who Is Managing Your Money?
   When you invest in EB-5, your money goes into a pooled investment fund, also known as the "NCE" (New Commercial Enterprise). This fund is usually made up of capital from multiple EB-5 investors and is loaned to a project. It’s important to understand that the manager of this fund (the NCE) plays a crucial role in the success and safety of your investment just as much, if not more, than the Regional Center itself. Always ask: Who is managing the NCE? and What is their track record?
2. Experience and Track Record
   Do your homework on the people managing the fund. How long have they worked in the EB-5 industry? What is their reputation? Have they successfully completed past EB-5 projects? A quick Google search of their names can give you valuable insight. Trust your instincts, if something feels off, look elsewhere.
3. Regional Center Oversight
   The Regional Center is the USCIS-approved entity that sponsors the EB-5 project. Check who owns or manages the Regional Center. It may be the same as the fund manager, or a separate group that licenses its name. Make sure the Regional Center is in good standing with USCIS, which you can often verify online.
4. Project Quality and Risk
   Evaluate the project you’re investing in. Is it in a strong market? Does it have realistic job creation estimates? Are well-known developers, contractors, or brands involved? A good project should make business sense, not just meet EB-5 requirements.
5. Capital Structure (Capital Stack)
   Understand how your EB-5 money is being used. Is the fund providing a secured or unsecured loan to the project? Who else is investing in the project (banks, equity partners, etc.)? Where does the EB-5 money rank in terms of risk? The answers will help you assess how protected your investment is.

 

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.