What is an EB-5 Regional Center?
For those who are interested in the US EB-5 investor visa you may have encountered the term ‘Regional Center’. There is some confusion over what a Regional Center is exactly and why investors choose to invest in EB-5 projects via such an entity. In this edition of our newsletter we give a brief overview of the Regional Center and what its benefits are.
A Sponsor of Capital Investment Projects
An EB-5 Regional Center is a service agent organization designated by the US immigration authority (USCIS) that sponsors capital investment projects for investment by EB-5 investors. It is an investment mechanism for investors and companies looking to complete a project under the EB-5 Program. The benefit of having a Regional Center designation is that the regional center can take advantage of indirect and induced (activty from economic impact) job creation, not just direct job creation. This means that the Regional Center can make it easier to reach the job creation requirements under the USCIS rules.
The Benefit of a Regional Center for Investors
An approved Regional Center can be any private or public economic entity that is involved with the promotion of economic growth and job creation. Investing through a Regional Center is not the only way to invest in EB-5 projects, but the benefit of a Regional Center investment is that the investment project is managed for the investor. This suits investors who are more concerned with obtaining residency status rather than directly managing an investment on their own.
Instead of investing directly into the project, the Regional Center sets up an investment fund for the benefit of the EB-5 investors. In one kind of set-up the investor will then invest in the investment fund, and this fund will then loan the funds to the project. The project then uses the investment from the fund to build or develop the project, and of course then to create the jobs. There are other EB-5 project organizational types, but this is arguably the most beneficial in terms of efficiency and security in job creation.
Central Florida EB5 Regional Center
At the Feltrim Group of companies we have both established our own Regional Center and also are developing projects. Our first project is Balmoral Resort, sponsored by our Regional Center, Central Florida EB5 Regional Center. This prjoject received exemplar approval from the USICS. Balmoral is a vacation home development of 245 homes and a $5 million amenities area, creating 534.6 jobs. All investment slots have now been taken and we have just launched investment in the Feltrim Preparatory Academy and R9 Ronaldo Soccer Academy. This is a new preparatory school, general sports academy and soccer academy associated with the Brazilian soccer star Ronaldo. This project will create 19 jobs per investor – well over the minimum 10 jobs required.
The Central Florida EB5 Regional Center is listed on the USCIS website. Click here to view and search under ID: ID1330451257
For further details download our guide below or visit the USCIS website.