Advantages of a Regional Center for Developers
Most EB-5 regional centers are newly formed in the past few year because US domestic economy climate is not clear, financial environment is tightened, to obtain traditional bank financing is quite challenging for project developers and business owners.
In this context foreign capital is becoming increasingly needed. At the same time, it offers the opportunities for the alien investors to invest into the US and obtain Green Card or Visa they need. The alien investors are primarily interested in immigration and do not have to pursue high profits in EB5 Regional Center Program.
The principal advantage of a Regional Center is that the law permits only a Regional Center investor to qualify for an EB-5 green card by creating 10 direct or indirect jobs, such as those in the hotel example, plus induced jobs downstream in the economy. Indirect employment is usually measured by an economist using an input-output model.
Another advantage is that the Regional Center can loan out the funds to a company or project. The investor may not loan the funds directly to an enterprise. The investor must make a capital investment.
Regional Centers provide other advantages including that the funds are usually considered “at risk” when deposited with the Regional Center or placed in its escrow account. This means the investor’s first application can usually be filed more quickly than if he/she creates their own business, which may take time for the funds to be spent to prove they are at risk.
USCIS says Regional Center applications are decided in five months. Some are processed in about 3½ months, while others may take longer.
Not only alien investors today can benefit from this EB5 investing visa program, both businessmen and developers can also benefit a lot from EB5 Regional Center program.