Most EB-5 visa applicants get their visas through one of the EB-5 regional centers located throughout the United States. These are economic units that are part of the U.S. Citizenship and Immigration Services’ Immigrant Investor Program. Some are private and some are public, but all have the goal of promoting economic growth and creating jobs by pooling immigrant investor assets in approved projects.
The flow of investor capital into this country needs to be monitored carefully and protected. The compliance of regional centers with the regulations of the EB-5 Regional Center Program is important.
In the summer of 2024, the U.S. Citizenship and Immigration Service (USCIS) issued guidance on new legal provisions regarding consequences for EB-5 regional centers that are noncompliant with the law. Sanctions for noncompliance by a regional center can include suspension and even termination of the center from participation in the EB-5 Immigrant Investor Program.
Guidance provides clarification of the EB-5 Reform and Integrity Act
The new USCIS guidance is meant to clarify the EB-5 Reform and Integrity Act (RIA) of 2022. The purpose of the RIA was to bring added accountability and integrity to the regional center program and give the USCIS more authority over the centers – thereby protecting those who invest in them.
Note that under the law, good-faith investors won’t lose their EB-5 status if their regional center is sanctioned. However, the USCIS can still deny an EB-5 application or revoke its previous approval if the organization believes someone is involved in fraud, intentional material misrepresentation or other criminality, or may present a threat to national security or public safety. EB-5 regional centers can face sanctions for these things as well.
The RIA and the USCIS’s added policy guidance are meant to protect the integrity of the EB-5 regional centers and the entire Immigrant Investor Program. Regular audits help protect the integrity of the centers and program as well.
EB-5 investors need to protect themselves
It is important for those who seek a Green Card (permanent resident status) through the EB-5 investor visa program by investing their money in one of the regional centers (or other qualifying entity) to do their own research and find out as much as possible about where they’ll be placing their money.
The process and requirements for getting and maintaining any visa can be challenging, but the EB-5 Immigrant Investor Program provides unique challenges. It is wise to seek sound financial guidance and legal guidance throughout the process. Such guidance can help prevent potentially costly mistakes and consequences.
