EB-5 Immigrant Investor Regional Center Program

EB-5 Immigrant Investor Regional Center Program

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June 8, 2021
EB-5 Immigrant Investor Regional Center Program
The EB-5 Regional Center Program (RCP) allows foreign
publicly owned, or a public-private partnership. Regional
national investors to qualify for lawful permanent resident
centers can be associated with one or more NCEs.
(LPR) status in exchange for foreign capital investment and
job creation in specified geographic areas in the United
RCP investors may invest in any regional center currently
States. The RCP is part of the EB-5 (fifth employment-
designated by USCIS. As of January 2021, there were 673
based preference category) Immigrant Investor Program,
active USCIS-approved regional centers. Nearly all
established by Congress in 1990.
regional center investors choose TEAs, which have lower
investment thresholds. Regional center investors may count
The EB-5 preference category provides admission to
indirect job creation (jobs held outside, but created as a
foreign nationals who
result, of the NCE) instead of or in addition to direct job

creation. Indirect job creation must be demonstrated with
invest at least $1,800,000, or $900,000 in a rural area or
reasonable economic or statistical methodologies. In
an area with high unemployment (targeted employment
contrast to investors using the stand-alone pathway,
areas [TEAs]), in a new commercial enterprise (NCE) in
regional center investors tend not to be involved in the
the United States; and
management and daily activities of the NCE.
 create or preserve at least 10 jobs.
Admissions through the RCP
The investment must be placed at risk (i.e., have a risk of
Regional centers have become the most common pathway
loss and a chance for gain). After approximately two years
to LPR status for EB-5 investors and their derivatives. In
in conditional LPR status, foreign investors and their
FY2019, 8,684 individuals were admitted through the RCP,
derivative spouses and children (unmarried and under age
compared with 398 individuals admitted through the stand-
21) must file a petition with U.S. Citizenship and
alone pathway. Figure 1 shows the number of individuals
Immigration Services (USCIS) to remove the conditions on
admitted through the EB-5 preference category through the
their status. The petition must include evidence that the
RCP and stand-alone pathway from FY2005 to FY2019.
principals invested and sustained the investment during the
Admissions refer to foreign nationals who receive
period of residence and that the NCE has met or will meet
conditional LPR status either as new arrivals to the United
job creation requirements. If the principals have met these
States or by adjusting status from within the United States.
requirements, they and their derivatives become LPRs.
Growth of the EB-5 program from FY2008 through
The RCP is one of two pathways to LPR status in the EB-5
FY2014 occurred through increased participation in the
program. In the original pathway, known as the standard or
RCP. Although admissions have declined in recent years,
stand-alone pathway, foreign nationals invest in an
the RCP continues to account for the substantial majority of
enterprise that uses the capital for direct job creation. The
EB-5 admissions. Economic impact studies have found that
second pathway, the RCP, allows investors to pool
most EB-5 investment spending and job creation are
investments into an NCE, which are typically used to fund a
generated through regional centers, in industries including
separate job-creating enterprise.
construction, real estate, and others.
Congress authorized the RCP in 1992 as the Immigrant
Investor Pilot Program. Initially set to expire after five
years, Congress has continuously extended the RCP since
1997 and struck “pilot” from the program name in 2012. In
FY2019 (the most recent available data), 96% of those
admitted through the EB-5 program invested in NCEs
associated with regional centers. Although regional center
investors now account for nearly all of EB-5 admissions,
the RCP remains temporary. Currently, funding for the
program is set to expire on June 30, 2021.
What is a Regional Center?
The term regional center refers to an entity, often a limited
partnership or a limited liability corporation, that pools
investments to fund projects that promote economic growth
in a geographic region. They can be privately owned,
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EB-5 Immigrant Investor Regional Center Program
Figure 1. EB-5 Admissions by Pathway (Stand-alone
Figure 2. USCIS Regional Center Designations and
and Regional Center), FY2005-FY2019
Terminations, FY2007-FY2021

Source: Designations: Data provided to CRS by USCIS on June 1,
Source: CRS, based on data from the U.S. Department of Homeland
2021. Terminations: USCIS, “Regional Center Terminations,” at
Security, Yearbook of Immigration Statistics, Table 7, multiple years.
https://www.uscis.gov/
Notes: Admissions include principal investors and derivative family
Notes: FY2021 current through March.
members (spouses and children).
Figure 2 shows the annual number of new regional center
In FY2019, about 36% of those admitted through the RCP
designations for the last 15 fiscal years. Regional center
were investors (3,135); 64% were investors’ spouses and
designations peaked in FY2018 before declining in FY2019
children (5,545). Most (83%) of those receiving conditional
and FY2020. These trends may in part reflect reaction to a
LPR status were new arrivals to the United States; 17% of
federal regulation that reformed the TEA designation
investors and derivatives adjusted to conditional LPR status
process and higher minimum investment thresholds,
from within the United States.
initially proposed in January 2017 and implemented in
Regional Center Designations
November 2019. In FY2019 and FY2020, there were more
terminations of existing regional centers than new
A separate process from the admission of investors exists
designations, indicating that some previously designated
for the USCIS designation of regional centers, which
regional centers had failed to prove economic growth on
includes the submission of a proposal. The proposal must
their annual certifications, which is the most common
reason for termination.
 describe the regional center’s focus on a limited
geographic region of the United States;
RCP Reauthorizations
 describe how the regional center will promote economic Since 2015, the RCP has been re-authorized on short-term
growth through increased export sales, improved
regional productivity, job creation, and increased
bases of less than one year. Those reauthorizations typicaly
domestic capital investment;
had been included in consolidated appropriations bills.

Most recently, P.L. 116-260, enacted in December 2020,
explain how jobs will be created directly or indirectly;
extended the program through June 30, 2021. If Congress
 show the amounts and sources of capital that have been
seeks to reauthorize the RCP prior to its June 30, 2021,
committed to the regional center;
sunset date, it would apparently do so separately from the
 describe promotional efforts taken and planned by the
annual appropriations process.
regional center’s sponsors;
 predict how the regional center will have a positive
A lapse in funding would likely put a pause on application
impact on the regional or national economy; and
processing for RCP investors and on regional center

designations. During a previous funding lapse in December
be supported by valid forecasting tools.
2018, USCIS put RCP investor applications on hold,
stopped accepting new applications for regional center
Proposals must also include a management and operational
designations, and placed pending regional center
plan for administrating, overseeing, and managing the
applications on hold. Investors already admitted and filing
regional center.
to remove conditions on their permanent resident status
were not affected by the program’s expiration.
Regional centers must demonstrate continued eligibility for
USCIS designation each year by providing evidence of
Stakeholders argue that continuous reauthorizations of the
continued promotion of economic growth. USCIS may
RCP in recent years through short-term measures, such as
terminate a regional center’s designation if it fails to submit
continuing resolutions, have led to uncertainty for investors
the required information or demonstrate continued
who have already made investments but have not yet been
promotion of economic growth.
admitted to the United States, as well as for other industry
stakeholders.
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EB-5 Immigrant Investor Regional Center Program
Since their establishment, EB-5 and the RCP have been
been introduced that would pair RCP extensions with
subject to controversy. Some Members of Congress have
reforms to address fraud and security concerns.
expressed concerns over instances of fraud and abuse in the
RCP and the EB-5 program—some have sought to reform
For more information about the EB-5 Immigrant Investor
the program, and others to eliminate it. The RCP has been
Program, see CRS Report R44475, EB-5 Immigrant
scrutinized for TEA investments funding projects, such as
Investor Visa.
luxury real estate, in affluent urban areas. The previously
mentioned 2019 federal regulation implemented changes
that addressed some concerns, including changes to the
Holly Straut-Eppsteiner, Analyst in Immigration Policy
TEA designation process intended to avoid
IF11848
gerrymandering. In recent years, bipartisan measures have

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