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EB-5 regional center investments for only $500,000, not the $1,000,000

EB-5 Visa

Direct EB-5 investments vs. regional center investments

On July 22, 2009, the U.S. Senate’s Committee on the Judiciary held a hearing on “Promoting Job Creation and Foreign Investment in the United States:
An Assessment of the EB-5 Regional Center Program.
” There was discussion that the EB-5 Regional Center Program has been responsible for the investment of hundreds of millions of dollars,
And the creation of tens of thousands of jobs in the U.S.
Throughout the hearing senators and witnesses alike cited the temporary nature of this program as one of its greatest hindrances and Sen.
Leahy noted that making the program permanent is critical to its continued success and pointed out that he had successfully offered an amendment to the Department of Homeland Security (DHS) Appropriation bill,
Which he hopes to see make it into the final bill.
Through this program resulting in the creation of 20,000 jobs.


qualified investment

The law relaxes the job creation requirement of the fifth-preference category by allowing aliens investing,
In new commercial enterprises located within regional centers to establish “reasonable methodologies” for determining the number of jobs created,
In addition, while the revenues generated by the qualifying commercial enterprise must result in exports,
As a result, immigrants participating in the pilot program may credit jobs they create indirectly through contracts or subcontracts with commercial enterprises involved in direct export.
This means they do not have to directly create 10 jobs.
To establish the requisite connection to exports,
As originally enacted,

To participate in the pilot program, immigrant investors must invest in an approved regional center in the United States established for the promotion of economic growth,
Including increased export sales, improved regional productivity, job creation, or increased domestic capital investment.
Improved regional productivity, job creation, and increased domestic capital investment.
Under this definition, a regional center could include entities ranging from a state government agency to a consortium of exporters.
The entity,
Whether public or private, must benefit a particular geographic region of the United States.


qualified Investment

In order to obtain approval for participation in the program,
The rules state that interested regional centers must submit proposals which must:
(1) Clearly describe how the center focuses on a geographic region of the United States and how it will promote economic growth through increased export sales,
Improved regional productivity, job creation, and increased domestic capital investment;
As well as a description of the promotional efforts taken and planned by the sponsors of the regional center;
(2) Contain a detailed description regarding the manner in which the center will have a positive impact on the regional or national economy in general,
As reflected by such factors as increased household earnings, greater demand for business services, utilities, maintenance and repair, and construction both within and without the regional center;

By: Brian D. Lerner
Attorney at Law
Certified Immigration and Nationality Specialist