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Vernon Martin

Can an EB-5 regional center be sold to a foreign entity?

I've recently seen two situations of regional centers being sold to foreign entities, and I've seen no rule against this, yet isn't this a disservice to the visa applicants? In one case, I saw a regional center seller extract a profit for himself from the sale. Is this allowable?

Answers

Ismael Fernandez
January 03, 2017 02:24 PMIsmael Fernandez

I don't think there is anything in SEC or USCIS regulations that prevent a Regional Center to be sold to a foreign entity. At the end of the day, the focus of the Regional Center is to create jobs in the U.S. through qualified EB-5 projects. If it is owned by a foreign or domestic owner, it bears no difference as long as jobs are created in the U.S.

I can see however how this could spin into a political nightmare if media founded a few Regional Centers owned by foreign entities. I don't think there is anything unethical about it as long as the objectives are always met.

Philip Cohen
July 25, 2017 03:13 PMPhilip Cohen

Recently-proposed legislation has touched on this issue and in one case a proposal has been made that RCs should not be owned by foreign individuals. While this may or may not come to pass, it is worth being aware that the issue is on the minds of at least some politicians.

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