What is the difference between a Regional Center and the traditional EB-5 program?

The EB-5 program gives the investor two options: invest in a regional center or apply for conditional residence through the traditional EB-5 program. The Regional Center option is a Pilot Program that was created by Congress in 1992 and expires on September 30, 2011. USCIS defines a regional center as “any economic entity, public or private, which is involved with the promotion of economic growth, improved regional productivity, job creation and increased domestic capital investment.”
In order to gain regional center status, the Regional Center organizers have to submit a proposal to USCIS, supported by economically or statistically valid forecasting tools, demonstrating its plan for the following:

• How the regional center plans to focus on a geographical region within the United States. The proposal must explain how the regional center will promote economic growth in that region.
• How, in verifiable detail (using economic models in some instances), jobs will be created directly or indirectly through capital investments made in accordance with the regional center’s business plan.
• The amount and source of capital committed to the regional center and the promotional efforts made and planned for the business project.
• How the regional center will have a positive impact on the regional or national economy


The “traditional” EB-5 program is a little different. In this case, the immigrant investor invests in a new commercial enterprise, one that was established after November 29, 1990, or prior to November 29, 1990 that is being reorganized or restructured in such a way that a new commercial enterprise results or expanded that there is a forty percent increase in the net worth or in the number of employees. This definition does not include noncommercial activity such as owning and operating a personal residence.

Under the traditional EB-5 program, the investment must create at least ten full-time jobs within two years of the investor’s admission into the United States as a conditional resident. Unlike the Regional Center, the jobs have to be created directly. Indirect job calculation is not permitted.

Please feel free to contact New York Immigration Attorney Robert J. Maher, Esq. with any questions: http://www.robertmaherlaw.com