Increase in terminations of EB-5 Regional Centers
The pace of regional center terminations has increased significantly over the past several years. In 2018, the U.S. Citizenship and Immigration Services (USCIS) terminated 130 regional centers (RC). In 2019, the USCIS terminated more than 100 regional centers. Since the beginning of 2020, the USCIS has terminated 119 regional centers. Those numbers probably include voluntary withdrawals by RC and “involuntary” terminations by USCIS.
USCIS may terminate a RC for a failure to file the annual report or for a failure to continuously promote economic growth, including improved regional productivity, job creation, and increased domestic capital investment.
The most involuntary terminations on account of RCs’ failure to promote economic growth were due to a purported “lack of regional center activity” (including lack of concrete steps to undertake actual projects, failure to advance past the preliminary planning phases, lack of approved I-526 petitions filed by investors). Other reasons for terminations include RC’s failure to engage in proper monitoring and oversight and any evidence of mismanagement, theft, or fraud committed by the RCs or related entities.
If the RC is terminated before an EB-5 investor obtains his conditional green card, the investor may not get his green card. It’s important that the RCs engage in actual and meaningful activities intended to promote economic growth and to comply with EB-5 Program requirements.
Please note that this article does not constitute a legal advice. If you would like help with applying for EB-5 green card, call our experienced EB-5 immigration lawyer in Phoenix at 480-425-2009 or schedule your consultation online.