Why are Regional Centers Created? –

Aside from creating an enticing platform for U.S. residency, the regional center concept is premised upon the thought that pooling investor funds into one project is safer and constructive when compared to the risks associated with creating, managing, and developing an individual investment project.

Furthermore, U.S. developers like to expand the diversity of their investor pool and provide a fresh source of capital as they welcome foreign investors.

This process further reduces the risk of liquidity as many transactions are allequity with little or no bank financing.

Since the primary motivation for many investors is U.S. residency, a small but reasonable return on their capital is usually expected and provided.

The job creation component is a motivating factor underlying the development of the regional center program.

This requirement is of great interest to Congress as well as the U.S. economy as a whole. Dependent on the total number of investors, a regional center may be required to create thousands of direct and indirect jobs which will satisfy both the project and the lifting of the conditional status of the investor.

This requirement is fulfilled relatively early on in the process as the job component must be demonstrated no later than 24 months after an investor receives his or her conditional U.S. residency.

While there is no bar to individual investors creating their own EB-5 application, this investment would require the creation of ten direct jobs, continued on-site management, and the risk of having to infuse greater capital to keep the business active. However, when investing in a Regional Center, an investor is relieved from those obligations as the Regional Center satisfies the job creation requirement, provides its own daily on-site management and development, and has no additional requirements for capital participation.

Additionally, during this period when traditional methods of financing have become limited and in many cases restricted, the EB-5 program and the regional centers created as its consequence, have opened the door welcoming a new form of alternative financing.

How to File a Regional Center Application –

How to File a Regional Center Application –