The EB-5 Regional Center Program, the most popular investment model for EB-5 visa applicants, was reauthorized by a June 24, 2022, court decision. The demand for regional center EB-5 projects is expected to grow significantly following this ruling.
Working with a regional center is beneficial for project developers, as it allows them to pool EB-5 funding from multiple investors. At the same time, regional center-sponsored projects are allowed to use econometric modelling to calculate their employment creation. This flexible job calculation method propels the popularity of EB-5 regional center projects and makes it easier for investors to qualify for visas.
Many business entities will likely be interested in meeting the surging demand and obtaining regional center designation from United States Citizenship and Immigration Services (USCIS). However, the designation process for regional centers can take several years and entail significant expenses. EB-5 industry members often find that purchasing an existing regional center is preferable; doing so grants the buyer an established reputation in the EB-5 industry and the ability to raise EB-5 capital immediately—without a multi-year delay waiting for USCIS designation.
At the same time, the recently-enacted EB-5 Reform and Integrity Act of 2022 introduced stringent integrity measures that make operating a regional center more demanding than previously, and the annual fee for regional centers has also increased substantially. Existing regional center owners may consider selling due to these prohibitive new compliance requirements.
The EB5AN team can provide comprehensive guidance on the regional center transaction process, including the following areas.
• How to market the sale of a regional center.
• The due diligence process for buyers, and how to identify a reliable regional center in good standing with USCIS.
• Acquisition structures for regional center transactions.
• Necessary documents and contracts to be prepared by both parties.
• The role of escrow agreements in the disbursement of funds.
• The role of the Regional Center Amendment letter.
• How to close the acquisition process.
Regional center designation opens up valuable business opportunities, enabling regional center owners to raise EB-5 funding immediately and work with leading EB-5 projects across a variety of industries. If you are interested in buying or selling a regional center, we invite you to complete this brief form to request further information.
EB5 Affiliate Network is a national EB-5 regional center operator and consulting firm trusted by more than 2,000 EB-5 investors from more than 60 countries. EB5AN works with project developers and sponsors to assemble high-quality EB-5 projects across the country. EB5AN also works with EB-5 investors from around the world to identify high-quality, low-risk EB-5 investments and to structure EB-5 projects for those who seek to create their own.
EB5 Affiliate Network
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