The EB-5 Regional Center is a business or public economic entity that stimulates the U.S. economy via foreign investments and job creation. The United States Citizenship and Immigration Services (USCIS) designates regional centers. EB5 Regional Centers may take cash from immigrant investors. Regional centers were created by the U.S. Congress in 1992 with the purpose of boosting the U.S. economy through foreign investments. These were formerly known as the Immigrant Investor Pilot Program.

The EB 5 investor visa lets overseas investors, their spouses, and their children under 21 years of age acquire permanent resident status through investment. The investor must commit a minimum amount of $800,000 to establish a new commercial enterprise. The new business must be located in a targeted employment area (TEA) and employ 10 qualified American citizens in full-time positions.

What are the contributions of an EB-5 Regional Center to the U.S. economy?

The EB5 Program has contributed several billions of dollars to the U.S. economy per fiscal year. EB 5 Regional Center projects generated $11.2 billion in capital investment between FY2014 and FY2015. It represents 2% of the total foreign direct investment (FDI) net inflows to the United States between FY2014 and FY2015. In FY2014 and FY2015, the program’s capital investment and related spending contributed $33.6 billion to the U.S. economy. Between FY2014 and FY2015, the tax revenues earned by the program for the federal, state, and local governments totaled $4.2 billion. The $2.7 billion in federal tax revenue contributed by the program is equivalent to 634 percent of the total amount of appropriations made by the federal government for economic development programs through the U.S. Economic Development Administration (EDA) between FY2014 and FY2015 at no cost to U.S. taxpayers.

What is an EB-5 regional center program reauthorization?

The EB 5 regional center program reauthorization refers to its being reauthorized (after it expired on June 30, 2021) under the 2022 EB5 Reform and Integrity Act.

Here’s how the EB-5 regional center reauthorization works:

• The regional center EB5 program will be extended for five-year periods afterward, with the effective date being 60 days after the law’s passage.
• It safeguards investors against expirations of future EB 5 programs and is applicable to investors whose petitions were filed before September 30, 2026.
• The minimum investment amount for investments in targeted employment areas (TEAs) is $800,000 and $1,050,000 in non-targeted employment areas.
• The Department of Homeland Security (DHS) is now solely responsible for determining which areas qualify as TEAs.
• The appropriations of EB-5 Visas have been modified with a 32% preference for particular projects within a fiscal year, as outlined below.
  • 20% will be appropriated for rural development.
  • 10% will be allocated for places with high unemployment.
  • 2% will be reserved for infrastructure initiatives.

US investors can file Form I-829 (EB5 Application) and I-485 (Adjustment of Status petitions) even if the I-829 form HAS NOT been approved yet.

• USCIS can now adjudicate the previously filed Adjustment Applications and Petitions that were left pending.
• Grandfather clause language has been incorporated to ensure that investors can move forward with their cases regardless of the expiration dates.

The EB 5 Regional Center reauthorization, which is through 2027, gives assurance and security to large numbers of immigrant investors who have relied on the program.

What is EB-5 regional center program renewal?

The EB5 regional center program renewal is the EB 5 Reform and Integrity Act of 2022. This bill modifies a number of essential aspects of the Regional Center Program, including: first, a five-year reauthorization period; second, a regulatory definition for targeted employment areas; third, an adjustment in the investment threshold amounts; fourth, a number of essential investor protections; and fifth, supplemental security and integrity measures.

What is EB-5 regional center success rate?

In general, the acceptance percentage for I-526 petitions ranges between about 75% and 80%. It can be presumed that an applicant who obtains approval for the I-526 form will seek permanent residency status with conditions. Overall, the approval percentage for I-829 petitions exceeds 90%. The USCIS website provides up-to-date information on the approval and rejection rates for I-526 and I-829 petitions.

What are the differences between EB-5 Regional Center and EB-5 Direct Investment?

The EB5 program has 2 investments for investors to choose: the EB 5 Regional Center and EB 5 Direct Investments. Although these 2 investments may seem similar, there are differences that every investor should know before making a final decision. The 3 main differences between an EB-5 Regional Center and EB-5 Direct Investment are listed below.

1. Job Creation Methodology

Direct Investment: All jobs counted toward the EB5 investment are salaried positions at the new commercial enterprise.

Regional Center Investment: Jobs counted toward the EB 5 investment include both salaried staff and indirect employment coming from the project’s involvement in the local community.

2. Control over the Business

Direct Investment: Has only the investor as the sole owner of the business, or may have co-owners. The investor will be the main decision maker and influencer of the company, and will be heavily involved in the operations as well.

Regional Center Investment: Consists of a hundred investors, and the EB-5 investor is just one of them. The investor becomes a limited partner with minimal participation in the business operations. The investor has voting rights and gets the benefits awarded for being a limited partner.

3. Return on Investment (ROI)

Direct Investment: Potentially offer higher rates of return. There is more control, minimizing business failure or other difficulties.

Regional Center Investment: Does not raise enough finance, the project may never get off the ground while the initial investors continue to incur costs.

EB-5 Regional Center and EB-5 Direct Investment.