Regional Center Formation

For EB-5 project developers, forming and operating a USCIS-designated EB-5 regional center is a virtual necessity for competing in the marketplace today. AII Law has taken part in the formation and expansion of regional centers since 2008 when it formed the Mississippi Development Regional Center, which remains in operation today. AII Law also assists a number of regional centers around the country with operations management and USCIS compliance and reporting obligations.

AII Law has assembled an experienced and skilled team of professionals who work with clients to form regional centers. This includes not only AII Law attorneys, but also a wide range of professionals including economists, consultants, business plan writers, securities attorneys, and many others. This team helps navigate clients through the complex I-924 application process.

A group seeking regional center designation does so by filing an I-924 application with the USCIS. This application is accompanied by information about the developer and the proposed project, which might include:

  • Information about the Principals and their development experience
  • Reasons why the proposed geographic area is appropriate
  • A thorough explanation of a proposed project or projects that will contribute to the area economy, which will  include an EB-5-compliant business plan and financial forecast as well as evidence of any progress made at the time of filing – the more tangible effort you can demonstrate, the more likely your chance of success
  • Offering documents by which the project will be introduced and marketed to investors – an offering or private placement memorandum, a limited partnership agreement (assuming that is the investment structure), and a subscription agreement
  • A marketing plan, which must be compliant with U.S. law
  • An economic study, whereby an economist uses appropriate methodologies to show USCIS that your project is more likely than not to create sufficient jobs for the number of investors from whom you seek subscriptions

Renting your Regional Center

Some costs associated with regional center formation can defrayed or recouped after the designation is awarded by “renting” a regional center designation to developers who wish to do projects within that regional center’s geographic area. In fact, there are a number of regional centers which only do this and do not develop projects of their own or raise capital. For a per investor or flat fee, a regional center can allow developers to operate under their designation, which permits additional types of jobs to be counted – naturally, this relationship is often a win-win for both the developer and the regional center.

AII Law can assist with all elements of regional center formation and administration.