The expansion of the EB-5 regional center visa program to approaching 200 regional centers, some of which seem both unproven and speculative, along with aggressive selling techniques entering the equation, has raised some concern. Certainly the range of projects on offer is now varied both in content and quality and there have been some well publicized failures.

It is particularly worrying, when a regional center identifies supposedly positive features that are aimed to appeal to overseas clients who are often thousands of miles away and are not in a place to judge for themselves, the validity of the information provided.

A number of regional centers have highlighted their positive features such as offering “solid investment opportunities” and “looking out for potential investors’ best interests”. However, certain claims may only give the positive half of the story and not the negative half. We have researched many regional center programs and identified a number of anomalies not always bought to the attention of potential EB-5 visa applicants.

A number of regional centers claim that on their program not a single I-526 petition has been denied to date. While this claim may be true it is only half the story. From the EB-5 clients’ perspective, the removal of conditions after two years, (I-829) and the return of their $500,000 capital may be of equal importance, after all failure to achieve the I-829 can lead to possible deportation from the USA for the whole family.

A majority of early year EB-5 visa clients have been successful in obtaining both their I-526 and I-829 approvals and indeed a number have received their full $500,000 back, for the unfortunate few there have been less satisfactory outcomes.

The clients in one Regional Center program did not receive I-829 approvals as the regional center concerned had switched their funds to a different program. Although the decision behind the switch was to protect the clients’ immigration status, USCIS were not satisfied that the switch achieved compliance with their specific requirements and thus did not approve the I-829 petitions.

There have also been a number of program failures at an earlier stage. One California Regional center had its USCIS approval to operate programs withdrawn following an investigation by USCIS; but not before a number of Chinese investors had funded their $500,000 of capital into the program.

At the time of writing another Regional Center is the subject of concern following work stopping on the construction of a factory, again a number of Chinese EB-5 applicants have already committed funds to the program.

There have also been issues where a center promotes its relative safety given that is apparently State run and therefore subject to State controls. However, the programs themselves and the capital from EB-5 participants are in private sector enterprises which could fail and it does not seem likely that the State, in such circumstances, would reimburse capital in the event of failure.

It is absolutely imperative that before deciding upon a regional center program potential EB-5 visa applicants are given detailed positive and negative information from specialists.

For a detailed discussion on the suitability or otherwise of using the EB-5 visa program please take advantage of a free in-depth EB-5 Visa consultation with the principals of Which EB5 who themselves are first generation immigrants to the U.S.A.