What is the level of engagement required of EB-5 investors who select to invest in regional center projects?
One of the requirements of the EB-5 Program is that EB-5 investors show proof of engagement in the new commercial enterprise (NCE) in some form. While EB-5 investors in the Direct Investment Program are typically actively involved in the day-to-day management of the NCE, Regional Center Program investors usually take on a more limited role.
An example of a more passive role that many Regional Center investors take may be as a limited partner who is involved in policy formulation or possibly exercises voting on major business matters.
It’s important that an EB-5 investor carefully review any offering documents or agreements from the Regional Center and go over them with an EB-5 attorney to ensure that the management rights laid out will fulfill the EB-5 Program requirements.
Being able to proof this involvement in the project is essential for the Form I-526 Immigrant Petition for Alien Investor stage. The I-526 Petition is the first form a prospective investor would file, through the assistance of an EB-5 attorney, in order to start their journey to obtaining a U.S. green card for themselves and their immediate family members.