EB5 New York Regional Center

What is an Regional Center EB-5 Program?

An EB-5 Regional Center is an organization designated by United States Citizenship and Immigration Services (USCIS) that sponsors capital investment projects for investment by EB-5 Investors. The major advantage for an Regional Center designation is that the center can take advantage of indirect job creation.

 

How to become an EB-5 Regional Center?

Anyone can apply for EB-5 Regional Center designation — there are no special licenses required. 

 

What does US EB5 visa program stand for?

It stands for Employment-based fifth preference visa

  1. An EB-5 Regional Center is an organization designated by United States Citizenship and Immigration Services (USCIS) that sponsors capital investment projects for investment by EB5 investors. The major advantage for center designation is that the center can take advantage of indirect job creation.
  2. The term center refers to any economic unit, public or private, which is involved with the promotion of economic growth, including increased export sales, improved regional productivity, job creation, and increased domestic capital investment within the EB-5 program.
  3. As of Sep. 6, 2016, USCIS approved 861 centers.
  4. In 1992, Congress created the Immigrant Investor Program, also known as the EB-5 Program.
  5. Business owners apply to USCIS to be designated for the EB-5 program. 

The New York EB5 Program was created by Congress as a means to stimulate the economy and create jobs through capital investment by foreign EB5 investors. The EB-5 Program, promulgated under Section 610 of Public Law 120-395, was created in October of 1992 and has been extended multiple times, most recently through September 30, 2015. The investment is made in an entity known as a EB5 Regional Center (RC), formed for the purposes of facilitating targeted economic growth.

The New York eb-5 program is administered by the US Citizenship and Immigration Services (the “USCIS”). The USCIS is responsible for confirming that the foreign investors meet all of the New York EB-5 Program requirements, which include:

  1. Confirming that the investor meets the accredited investor requirements, as per Rule 501 of Regulation D;
  2. Confirming that the invested capital is a qualifying loan, as such term is defined under 8 U.S.C. §1153(b)(5)(A)(i to iii), and (C) of the Securities Act of 1933, as amended; and
  3. Confirming that the investor has met all necessary immigration procedures.

There are two threshold levels for the capital investment: a minimum amount of one million dollars ($1,000,000); or, in the event that the project in question is located in either a high unemployment or a rural area, i.e. a Targeted Employment Area (“TEA”) as defined by the US Citizenship and Immigration Services, a minimum amount of five hundred thousand dollars ($500,000).

The US Citizenship and Immigration Services defines a Regional Center as a public or private entity involved in the promotion of economic growth, job creation, improved regional productivity and increased capital investment in the target geographic area. Creation of a NYC Regional Center enables immigrant investors to take advantage of a more expansive definition of job creation by taking into account both indirect as well as direct jobs when meeting this requirement.

In order to receive a designation from the U.S Citizenship and Immigration Services organizers must submit a proposal – supported by economically and/or statistically valid forecasting tools – that shows the following:

  1. How the NYC regional center will promote economic growth in the indicated region;
  2. How direct and/or indirect jobs will be created through the capital investments being made in accordance with a New York Regional Center’s business plan (Note: At least ten (10) jobs must be created per Unit in order for accredited EB5 investors to pursue the benefits offered under the eb-5 program); 
  3. The amounts and sources of the capital committed to the Regional Center;
  4. The promotional efforts made and planned for the proposed project; and
  5. The positive impact that the Regional Center will have on the regional and/or national economy. 

Approval of a Regional Center means the U.S Citizenship and Immigration Services recognizes the economic entity as a designated participant in the NYC investor EB-5 program, and acknowledges that the econometric models and business plans appear feasible and jobs should be directly and/or indirectly created through capital investment in the approved project. New York Regional Center approval does not mean that capital investment in the center’s approved projects are backed or guaranteed by the government, nor is it an indication that the investor will ultimately be granted the unconditional permanent resident status available under the immigrant investor  program.



FAQs

What is the US EB5 visa program

The US EB5 visa program is an Immigrant eb-5 investor program that was created by Congress in 1990 and is administered by the  USCIS.


How Does the US EB5 visa program work? 

The EB5 visa is designed so that foreign EB-5 investors who make qualifying investments that stimulate the US economy through job growth are eligible to become permanent residents of the US.


What is a Regional Center? 

Congress created the Regional Center Pilot Program in 1992 to expand the it. A Regional Center is an entity approved by the USCIS to promote economic growth in a defined geographic area, which it does by sponsoring projects in which visa for investors may make capital investments in the eb-5 immigrant program.


Who Is a Good Candidate for the EB5 visa? 

Anyone that is not a US citizen or a lawful permanent resident of the USA may participate in the lawful permanent resident of the USA. There is no professional requirement or age limitation, and the eb-5 immigrant program offers permanent residency to qualified EB-5 investors and their spouse and children under 21.


What Would Disqualify Me from Participating in the EB5 visa? 

Ultimately, an applicant for residency must be able to show that they are admissible in accordance with the provisions of Section 212 of the United States Immigration Act. Factors that could preclude an alien from entering the USA include those based on physical or mental health, criminal history, and prior conduct of a fraudulent or immoral nature. Each potential investor should review these grounds with their own eb-5 immigration attorney to determine if there may be a basis to deny their admission to the United States, notwithstanding their having met the requirements of the NYC Program.


What Level of financing is Required? 

The minimum amount of capital is one million US dollars ($1,000,000), unless the project is in a targeted employment area (TEA), in which case the amount is five hundred thousand US dollars ($500,000). A TEA is a location that at the time of the loan is considered to be a rural area or high unemployment area, as defined by the USCIS. This amount does not include the administrative fee of sixty thousand US dollars ($60,000) that New York Regional Center charges to defer the costs associated with operating the Regional Center.


Will I Need to Pay Any Other Fees? 

Many  investors will hire consultants to assist in the review of the Private Placement Memorandum or Offering. In addition, the lender will need to hire an eb-5 immigration attorney that specializes in immigration law to file the necessary paperwork if a decision is made to invest in the project. The USCIS also charges filing fees for petitions that the lender must file in connection with the process.


What sources of Capital Qualify? 

The USCIS defines capital as “cash, equipment, inventory, other tangible property, cash equivalents and indebtedness secured by assets owned by the alien entrepreneur, provided that the alien entrepreneur is personally and primarily liable.” It is also permissible for the alien lender to acquire the capital by way of a gift or inheritance. Assets of the enterprise in which the payment is being made may not be used to secure the indebtedness. The USCIS carefully traces the source of the capital to verify that it qualifies and that it was not acquired either directly or indirectly by unlawful means.


How Complicated is the Process? 

The process is complicated and involves the detailed review of the paperwork and, if you decide that you wish to invest in the project, the preparation of extensive paperwork for the USCIS. Again, it is recommended that you seek assistance from professionals (e.g. tax, legal) to ensure that you fully understand the requirements and ramifications of the process.


Could I Have NYRC Prepare the Immigration Paperwork for Me? 

You must hire your own eb-5 immigration attorney to file the required immigration paperwork with the USCIS. It is important to have independent representation for this crucial process. NYRC will work with your eb-5 attorney however, and any other professionals you have retained, to help facilitate the filing process.


When Must I Pay? 

NYRC’s require the full capital (typically $500,000 US dollars) and administrative fee ($60,000 US dollars) to be included with the subscription agreement.


How Safe is My Capitol? 

The USCIS makes it very clear that the loan must be “at risk” in order for a lender to qualify for the benefits. While NYRC goes to great lengths to preview and screen developers and their projects, there are no guarantees that a project will be successful. While steps may be taken – such as securing mortgages to protect a loan to a developer, collateral or other pledges – it is incumbent upon the investor to review the Offering and fully understand the project. As it unfolds, NYRC will keep track of the progress and keep investors informed of the project’s performance to ensure transparency.


If the USCIS Denies My I-526 Petition Will My Loan Be Returned? 

If the USCIS denies a potential investor’s I-526 Petition then the full loan will be returned, without interest.


Will I Become a Permanent Resident of the US if I Participate in the Program? 

There is no way to guarantee that the lender will be granted permanent residency status simply by making a qualified loan in a sponsored project. The ultimate decision depends upon the USCIS’s final review of the job-creation requirements, which may be helped by having experienced immigration counsel prepare a thorough petition.


How is the Job Creation Requirement Met? 

One of the major advantages of working with a New York City Regional Center like NYRC is that its USCIS designation allows both the direct and indirect jobs that are created as a result of the underlying project to qualify for the purposes of the EB5 US visa program. Indirect jobs are determined through the use of economic modeling approved by the USCIS – such as RIMS II which projects the creation of indirect jobs by studying the relationship between economic development and job creation. NYRC tracks the number of direct and indirect jobs created and provides supporting information to each investor’s eb-5 attorney when it is time to file the I-829 Petition with the USCIS to remove the conditions on their US residency.


Do I Need to Work in the New York City Company? 

One of the advantages of investing in a project sponsored by NYRC is that there is no requirement that the investor work in the company that is the beneficiary of the investor. You are free to work anywhere in the US that you wish, full or part-time, with an EB5 US  visa.


At What Point, Will I Be Able to Exit the venture? 

This depends on the nature of the investor and is explained in the Offering. In situations where the investor involves a qualifying loan to the project developer, the minimum time frame is typically between five (5) and seven (7) years and return of the investor loan comes through the sale of the project or refinancing of the outstanding debt. If the qualifying investor loan results in an equity position in the project the time frame may be longer, unless someone is willing to purchase the interest in the project.


How Does NYRC US Define a Successful investor loan? 

NYRC US’s goal is to deliver three things to the investor: 1) permanent residency in the US; 2) the return of the original investor loan; and 3) the rate of return projected in the Offering. While the first two are the investor’s primary concerns, achieving all three is how we truly measure success.



Disclaimer

This Website Does Not Constitute an Offer to Sell Any Security

This website does not make any offer to sell any security. The information contained on this website is not to be construed as an offer to sell or the solicitation of an offer to purchase an interest in any investment. Neither is it to be considered to be the provision of investment management or advisory services. Any offer or solicitation of a security shall be pursuant to a confidential private placement memorandum or offering, and in accordance with exemptions from registration requirements under applicable securities laws. Said offerings or solicitations will be made in jurisdictions as permitted by law and exclusively to qualified investors . Any information on this website relating to New York Regional Center is qualified in its entirety by the information contained in the offering materials for each investment and potential EB-5 investors are advised to take note of the risk factors relating to said investment.


Links to This Website

NYRC US is not responsible for nor has it reviewed the content of unaffiliated sites linked to this site, if any. Should you choose to link to any off-site pages or other sites it is at your own risk. New York Regional Center does not monitor or control the content on any linked sites, makes no representations about the statements or opinions of third parties that appear thereon, does not endorse and disclaims any and all responsibility for such statements or opinions, or the web sites themselves.


NYRC Does Not Offer Legal Advice or Services

It is important potential EB-5 investors realize that neither NYRC nor its employees, managers or members, will serve as your eb-5 immigration attorney or provide legal advice in any manner in connection with your investment decision. Potential investors should seek their own independent eb-5 immigration attorney and other applicable counsel (investment, tax, etc.) relative to any investment offered by New York Regional Center. New York Regional Center is a business that provides services to foreign visa for investors but is not authorized to provide investment advice. New York Regional Center is not responsible for the success or failure of any of its offered investments, the profit, loss or expense relative to such investment, or for compliance with United States Citizenship and Immigration Services requirements.


The material presented herein is for informational purposes only and is not an offer to sell or a solicitation of an offer to buy any security by NYRC or any of its affiliates. This material may not be relied upon in connection with the purchase or sale of any security. Securities, if offered, will only be available to persons who are “accredited visa for investors” or otherwise qualified visa for investors pursuant to a confidential private placement memorandum and subscription agreement.