The EB-5 Regional Center Program offers foreign investors a path to permanent residency in the United States by making job-creating investments.
These investments can be direct or indirect. The latter involve investing the capital in an EB-5 project sponsored or developed by a regional center (RC). This entity must be U.S. government-approved and promote job-creating projects that comply with the EB-5 visa program.
Under the EB-5 Reform and Integrity Act of 2022 (RIA), RCs must comply with stricter regulations, including payment of annual Integrity Fund fees and submission of compliance reports.
Regional centers that fail to meet these obligations can be terminated by the United States Citizenship and Immigration Services (USCIS). EB-5 investors must understand how these terminations may affect their application process and their rights as petitioners
How Regional Centers Operate
EB-5 investments can be direct or indirect. Indirect investments place capital into an EB-5 project sponsored or developed by a regional center that pools funds and supports job creation through qualifying projects. RCs must comply with RIA obligations, including payment of annual Integrity Fund fees and submission of compliance reports.
Why Regional Centers Get Terminated
In July 2024, USCIS terminated several regional centers for failing to pay the required annual EB-5 Integrity Fund fee. These actions aligned with audits aimed at increasing oversight and transparency. Under the RIA, nonpayment and other compliance failures can trigger termination.
Investor Considerations During Termination
Before committing funds, investors and counsel should evaluate whether the regional center has paid the EB-5 Integrity Fund fee, has project approval through Form I-956F, and has filed required submissions such as annual compliance reports. Thorough due diligence is essential because investors can be affected if a regional center is terminated after they have allocated capital.
Good-Faith Investors and Regulatory Protections
USCIS recognizes that terminations are not the responsibility of individual applicants. This means that the U.S. agency recognizes that investors in “good faith” if their regional center fails to comply. The RIA provides protections in these situations, allowing investors to continue their immigration process if job creation and capital-at-risk requirements are met. The law also extends protections to regional centers that request voluntary termination after creating jobs and sustaining investments.
Impact on EB-5 Applications
Pre-RIA investors
Applicants who filed before the RIA may remain eligible under the INA even if their regional center is terminated. Cases are reviewed individually; investors may rely on jobs already created or in process and can amend an I-526 to move to another project if needed.
Post-RIA investors
If the investment has been maintained for at least two years and the required ten jobs have been created, the petition can proceed without changes. If those conditions are not met, the petition must be amended and may need to associate with a new regional center.
Regional center terminations can affect EB-5 investors, but the law offers protections for applicants whose RCs are terminated. Conducting careful due diligence, confirming ongoing compliance, and understanding available safeguards help protect both the immigration process and the investment.
This article is for informational purposes only and does not constitute legal, financial, or investment advice. EB-5 participation involves risk and complex eligibility requirements. Consult qualified immigration, financial, and legal professionals before making decisions.