Ensuring Investor Trust in EB5: Regional Centers and Timely Repayments

What are the recent changes in the EB5 Visa program?

In the wake of the recent legal action taken by IIUSA against USCIS, seeking to extend the new RIA 2022’s two-year payback requirement to five years, there exists a robust discourse surrounding its potential ramifications within the EB5 community and among investors.

Irrespective of the eventual verdict, it is imperative for Regional Centers to adhere steadfastly to the stipulated payback schedules, as delineated in the offering documents. Historically, these centers have leaned on the sluggish processing times attributable to backlogs and retrogression, caused by visa unavailability.

However, with the introduction of the novel “set aside” visa for rural, targeted employment areas, and infrastructure projects, Regional Centers now confront the necessity of adhering rigorously to the prescribed timelines, as delineated within their original agreement with the investor.

Preceding the enactment of RIA 2022, the extended timeframe permitted Regional Centers to retain investor funds for an elongated period, awaiting USCIS petition processing or until a visa became available for the respective nation. While advantageous to the centers, this protracted refund delay served as a deterrent to unsuspecting investors, fostering an atmosphere of uncertainty and suspicion within the industry.

Irrespective of the outcome – be it a two-year or five-year horizon – Regional Centers must uphold their commitment and uphold these deadlines articulated within the offering documents. Failure to do so jeopardizes the integrity of the program.

Consequently, honoring these deadlines and effecting timely repayments will not only reinforce investor trust but also incentivize more foreign investors to entrust their capital to US developers and Regional Centers alike.