You are hereFrequently Asked Questions / Regional Centers -- Features, Benefits & Requirements / [Q] Generally, what kinds of investment structures are utilized by USCIS-designated Regional Centers?

[Q] Generally, what kinds of investment structures are utilized by USCIS-designated Regional Centers?


Although USCIS-designated RCs involve numerous industries or targeted business areas, they generally use one or more of the below investment structures permissible under the EB-5 law. It should be noted that limited partnerships formed pursuant to the Uniform Limited Partnership Act of applicable states are used by most RCs because the entity allows for participation by multitude of EB-5 investors.

1. Form a limited partnership to "pool" capital contributions from individual EB-5 investors and then use the total funds to make an equity investment (and receive equity stake) in a job-creating business.

2. Form a limited partnership to "pool" capital contributions from individual EB-5 investors and then use the total funds to purchase a real property and/or make substantial renovations to attract commercial tenants who create new jobs.

3. Form a limited partnership to "pool" capital contributions from individual EB-5 investors and then use the total funds to make equity investment in a business entity developing a real estate project.

4. Form a limited partnership to "pool" capital contributions from individual EB-5 investors and then make loan(s) to job-creating borrower business(es) operating in various industries, including developing real estate projects.

Now, there are advantages and disadvantages with any one of the above investment structures (the structure of the specific EB-5 project has to be closely examined); but generally speaking, the trend of the investment structure utilized by RCs appears to be moving towards the number 4. Also, the trend set by various leading RCs appears to be moving towards big projects.