Understanding EB-5 Visa Immigration Regional Centers
EB-5 Regional Center vs. Individual EB-5 Investments
While many investors interested in living in the U.S. are eager to start a new business, others are concerned that they may not be able to replicate the success they've had back in their home country. In fact, given the current economic climate, even some of those "hands on" entrepreneurs are giving the notion of an upstart business a close re-examination.
Fortunately, the U.S. government offers an investment-based permanent residency opportunity which takes the traditional investment and job creation requirements of the individual EB-5 Investor Visa and consolidates it into structured, federally-approved "Regional Centers" which essentially offer the same immigration benefits while removing the task of new business creation from the investor.
It works like this: by combining the investment funds of multiple investors, these highly controlled and professionally managed Regional Centers create diversified investment pools which not only stimulate the U.S. economy but also allow for indirect job creation. These investments and indirect jobs are essentially "pro rated" among the investors to meet the requirements and they offer the same permanent residency.
While you'll read about the Regional Centers as "passive" investments, they are anything but "passive". In fact, the job generation activity and regional economic impact tends to be far greater - more "active" - than that possible by any individual investment. The main difference is the existence of a professional team, approved by the federal government, to manage the investor funds and guide the investment to its ultimate purpose: a powerful economic impact on U.S. communities and jobs AND permanent U.S. residency for its investors.
So Why Invest via a Regional Center?
This question will depend upon each unique investor but, basically, the primary reason is to pursue U.S. permanent residency without having to start your own "bricks and mortar" enterprise…by letting professionals handle that aspect of it. Most Regional Centers are in designated high-unemployment or rural zones; that means that you invest $500,000 instead of $1 million…and that is pretty compelling for most.
The Regional Center receives and controls the investment funds and the investor does not have to run the investment enterprise; the Center also takes responsibility for ensuring that the investment there meets the "create 10 jobs" requirement.
The idea, then, is to delegate most of the operational responsibilities of the investment activity to the management team, typically a seasoned group of investment and development professionals.
Choosing the right Regional Center is critical. As with any investment, each investor has a different risk tolerance. Some investors are excited, for example, by a Regional Center offering an investment opportunity in cutting edge technology; others are risk-averse and will take a very modest rate of return assured by bonds as opposed to something truly innovative. Whatever your appetite for risk, it is critical to have qualified financial counsel review your options as well as the investment documents, which can be lengthy and complicated.
How can we help you?
Most importantly we can assist the client in determining whether they are a qualified investor. We can also assist you in determining whether to choose a Regional Center or a direct investment. In the event you select a Regional Center option, we can guide you in evaluating various regional centers consistent with your objectives. We can offer you a thorough analysis in the validity of a job creation methodology as well as the past performance of any given Regional Center. Further we will assist the client in presenting to USCIS clearly delineated source of funds material as well as completing the appropriate applications. Throughout the process we will always be available to assist you and answer questions that arise.
Bernstein Osberg-Braun & de Moraes