What is a Regional Center?
An EB-5 Regional Center is an organization designated by United States Citizenship and Immigration Services (USCIS) that sponsors capital investment projects for investment by EB-5 investors. The major advantage for regional center designation is that the regional center can take advantage of indirect job creation. Regional centers help EB-5 investors and project developers because they lessen the difficulty of meeting qualifying job creation requirements under the EB-5 program rules.
A regional center is a service agent organization for investors and companies looking to complete a project under the EB-5 Program. A regional center can be any private or public economic entity that is involved with the promotion of increased domestic capital, job creation, improved regional productivity, and increased economic growth.
Regional centers are best for EB-5 applicants who are more concerned with obtaining residency status rather than directly managing an investment on their own.
A regional center represents one of two ways for EB-5 investors to obtain conditional permanent residence; the other being direct investment into a new commercial enterprise. Instead of investing directly into the project, the RC sets up an investment fund for the benefit of the EB-5 investors. Investors purchase equity stakes in the investment fund. Then, the fund either purchases equity in the job creating entity (the equity model) or loans the job creating entity money (the loan model). The job creating entity then uses the investment from the fund in the project to create jobs indirectly.
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