How do EB-5 regional center investments work and why are they important? EB-5 regional centers are a vital part of the EB-5 Program.
Each year, thousands of foreign investors choose to place their funds in a regional center so it's important to understand how EB-5 regional center investments work.
Regional centers vet and work with different companies that seek capital for investment projects.
Investors look at different projects regional centers offer and chose ones that appeal to them. Why it appeals to them is largely dependent on the individual investor. They may choose one they deem to be the least risky or they may choose one because it's a project in an industry they're familiar with.
When an EB-5 investor applicant invests in the Regional Center Program they're privately placing funds in a regional center project of their choosing.
Some examples of the types of projects that business entities use EB-5 funds for include:
- Mixed-use real estate and commercial properties
- Healthcare facilities
Federal and state securities laws and regulations govern the process of placing funds in these projects. This means that the projects are scrutinized by many levels of government.
What must investors, regional centers, or project developers disclose to the government? They must provide documents showing how the project will be funded. They must show expected job creation. (EB-5 investors must create 10 full-time positions for qualified U.S. workers in order to qualify for a green card through the EB-5 Program.) They must provide documents that show the risk involved in investing in the project. (In order to qualify for the EB-5 Program, EB-5 projects must always be at-risk projects.)