EB-5 Regional Centers explained

As you may be aware that the EB-5 program requires investors to invest in New Business in the US, and this investment should result in the creation of at least 10 Jobs for Americans

What is a Regional Centre?

Since it’s not possible for everyone to do so directly, the Concept of a Regional Center was introduced to enable more and more people to participate in the EB-5 program and get Green Card

To put it in simple terms, a Regional Centre is an organization approved and regulated by USCIS to promote economic growth in a specific region.

On 31st October, there were 632 USCIS-approved Regional Centres.

How does a Regional Centre Operate?

The Regional Centres’ main function is to mobilize funds from multiple EB-5 investors and invest the pooled amount in a project which will create Jobs on behalf of the investors, enabling them to get Green Card.

In short, by investing with RC, you are outsourcing the responsibility of creating jobs to them.

What are the advantages of investing through a Regional Centre?

RC has a major advantage in job creation – They also get benefits of indirect job creation as the result of investment in that area. These indirect jobs are not real jobs, i.e., people actually working on payroll, but a notional number that is arrived at by applying economic modeling.

On account of this Economic modeling, it is almost assured that jobs will be created as long money is invested in the project, and thereby the risk of you not getting the green card is significantly reduced.

And because of this investing via the regional center has been the most preferred route for investors. In fact, statics shows that more than 90% of the EB-5 investors have invested via RCs