What is a Regional Center?
Regional Centers are an important part of the EB-5 Investor Visa program that simplify the process for foreign investors wishing to participate. At American Life, Incorporated, we get a lot of questions from potential investors about Regional Centers. Today, we’ll talk about what they are and how Regional Centers like American Life, Incorporated, can help you through your US investment process.
The United States Citizenship and Immigration Services (USCIS) department authorizes Regional Centers, which are organizations that meet the criteria to assist foreign investors with the EB-5 Visa program. The organizations gain their Regional Center designations to develop job-creating capital investment projects in certain areas of the US, and for certain industries.
Once an organization becomes a Regional Center, it can apply for pre-approval for projects that will be used for foreign investment in the EB-5 program. This makes it easier for the investor to receive approval when he or she applies for their own EB-5 program petition for that same project.
The Regional Center is responsible for identifying projects that will provide jobs and for developing and managing that project once it is developed. Regional Centers ensure that the project is not encumbered with liens or loans that negatively affect its value to the investor, and by continuing management of the developed property, they ensure that a steady stream of profits continues. The Regional Center is also responsible for providing regular financial statements for the investment.
Investing through a Regional Center influences the job creation requirement of the EB-5 program. Investing on your own, you would need to show that your investment creates at least 10 direct full-time jobs. With a Regional Center, this requirement can be fulfilled by direct, indirect, or induced jobs. Indirect jobs are those created because the new development is in place. These jobs are in the vendor companies that service the new development, providing products or services to the new building. Induced jobs are those that open in the community as a result of the new demand generated by employees of the new development, such as new restaurants that wouldn’t otherwise open without the new commercial enterprise in place.
When you invest through a Regional Center, you do not have to become involved with the operation of the business. Instead, you become a limited partner or member of a limited liability company, and this satisfies the requirement for involvement in the business. This way, you don’t need to live near the new development because you’re not involved in the day-to-day operations. You can live anywhere in the US you want.
A Regional Center makes it easier to participate in the EB-5 Investor Visa program. To get started on your investment in the EB-5 program, contact American Life, Incorporated today. Our investment professionals will help you choose the best investment opportunity for your individual needs, and we’re happy to answer all your questions about the EB-5 program. Contact us online, call us at 206-381-1690, or visit US office at 2710 S. Hanford Street, Suite 100, in Seattle, Washington or any of our international offices in Shanghai, Tokyo, or London.