An EB-5 Regional Center is an organization, designated and regulated by USCIS, which facilitates investment in job-creating economic development projects by pooling capital raised under the EB-5 immigrant investor program. Regional centers can be publicly owned, (e.g. by a city, state, or regional economic development agency), privately owned, or be a public-private partnership.
• Identify investment opportunities that will create jobs in local communities, often in partnership with economic development agencies. • Assist in marketing those investment opportunities to investors from around the world. • Ensure that the investment offering complies with federal and state securities laws and SEC regulations as well as specific EB-5 requirements.
EB-5 investments that are affiliated with EB-5 Regional Centers are made through private placements - the sale of securities to a relatively small number of select investors. Like all private placements, which are used by companies to raise capital in a number of contexts, EB-5 private placements are governed by federal and state securities laws and regulations. A private placement memorandum is developed that details the investment offering, including detailed explanations of the project that will be funded along with disclosures of risk and material information consistent with all applicable federal and state laws. The economics of the project related to EB-5 specifically – the expected job creation – are also detailed in the memorandum. In some cases, the issuer of the private placement memorandum is an EB-5 Regional Center itself. In other situations, the issuer is business entity that will be receiving the investment funds and is affiliated with a Regional Center.
By law, an EB-5 investor is required to invest a minimum of $1.8 million, unless the investment is located in a Targeted Employment Area (TEA) – a rural area or area of high- unemployment designated by USCIS. Regional Centers funding projects in TEA’s can accept a minimum of $900,000 from each EB-5 investor.