Definition of an EB-5 Regional Center Visa

The EB-5 visa for Immigrant Investors is a United States visa created by the Immigration Act of 1990.

This visa provides a method of obtaining a green card for foreign nationals who invest money in the United States. By investing in certain regional centers with high unemployment rates, the required investment amount is $500,000. The Immigrant Investor Pilot Program was created by Section 610 of Public Law 102-395 on October 6, 1992.  This was in accordance to a Congressional mandate aimed at stimulating economic activity and job growth, while allowing eligible aliens the opportunity to become lawful permanent residents. This “Pilot Program” required only $500,000 of investment in exchange for permanent resident status.  The investment could only be received by an economic unit defined as a Regional Center.

 

A Regional Center is defined by any economic unit, public or private, engaged in the promotion of economic growth, improved regional productivity, job creation and increased domestic capital investment.  Prior law required the investment in the Regional Center to generate an increase in export sales, however statutory amendments in 2000 and 2002 no longer require this increase. The individual receiving the visa is not required to actively manage the business invested in. For those who prefer a passive role in the management of their investment, do not wish to be involved in the creation of the 10 U.S. full time jobs, and would rather limit their investment to $500,000 USD, then the Regional Center, or EB-5 Pilot Program is the better immigration option.

 

A Regional Center obtains its designation by submitting a detailed application to U.S. Citizenship and Immigration (USCIS). The application must state: (1) the kinds of businesses that will receive capital from investors; (2) the jobs that will be created directly or indirectly as a result of the investment of capital; and (3) the other positive economic impacts that will result from the investment of capital.

 

Once USCIS has approved a Regional Center application, an investor seeking an EB-5 green card through the Regional center Investment Program must make the qualifying investment (i.e., $1 million or $500,000) within an approved Regional Center. However, the requirement of creating at least 10 new jobs is met by a showing that as a result of the new enterprise, such jobs will be created directly or indirectly.

 

There are approximately fifty Regional Centers and given there have been a number of alleged fraud cases it is critical to take independent specialist advice.