5 Tips for Becoming an EB-5 Regional Center

The EB-5 Immigrant Investor Visa Program was introduced as part of the Immigration Act of 1990, and provides a way for eligible immigrant investors to obtain status as a permanent resident of the U.S. by investing a minimum of $1 million into a U.S.-based business that employs at least 10 American employees. However, by investing in a targeted unemployment area (TEA) – an area with a high unemployment rate – immigrant investors can lower that required investment threshold to just $500,000.

EB-5 regional centers are responsible for overseeing and carrying out investments within a designated geographical area. These centers earn their profits by taking a percentage of the returns of investment projects that they facilitate and through charging administrative fees to each EB-5 investor as well as charging fees to project developers. If you’ve recently become interested in launching an EB-5 regional center, here are five tips you’ll want to keep in mind:

1. Work with a Centralized EB-5 Firm

Successfully completing the application to become an EB-5 regional center can require the assistance of numerous vendors, companies, and attorneys. Generally, instead of collaborating with multiple parties during the application process, it’s best to obtain these services from a single firm that specializes in EB-5 regional centers, such as David Hirson & Partners.

2. Create an Operational Plan to Define the Scope of Your Proposed Regional Center

In order to demonstrate that you’ll be operating in full compliance with the rules and regulations of United States Citizenship and Immigration Services (USCIS), you must prepare an operational plan that will define proposed business models, required investment fund amounts, and other essential details.

3. Become Familiar with Nearby TEAs

A targeted unemployment area (TEA) is a region where the unemployed rate is at least 150% of the national average. The vast majority of EB-5 investments occur in these regions, so it’s important to become familiar with them as the aspiring owner or manager of a new EB-5 regional center.

4. You’ll Need a Matter of Ho-compliant Business Plan

A central aspect of your EB-5 regional center application will be the submission of a comprehensive business plan that is Matter of Ho-compliant. This plan will need to include projected revenue and expenses, market research results, potential exit strategies, and any other details that will demonstrate how the center will administer and structure its EB-5 investment projects.

5. You’ll Also Need a Job Creation Report

The job creation report will describe how the business model laid forth in the EB-5 business plan will be able to create jobs within the TEA. This should include how many estimated jobs will be created and over what time period.

Becoming an EB-5 Regional Center is a Profitable Opportunity

In conclusion, any investor or entrepreneur who has a substantial amount of capital set aside may want to consider the benefits of opening an EB-5 regional center. With the future of immigrant investing in the U.S. looking quite promising, now is a better time than ever to take advantage of the EB-5 program from an investor’s standpoint.

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