Call Today 1-646-459-4311
or Schedule a Free Consultation


Photo
Print

Regional Centers

How They Qualify

Regional Centers are started by local U.S. businessmen, sometimes in alliance with local government agencies, in order to attract investment capital for current or planned business ventures. The additional benefit of U.S. permanent residence allows the centers to attract foreign investors even if the financial return is modest. The investments may be in any lawful business, and they vary widely.

Regional Centers Today

There are currently over 200 USCIS designated regional centers. Investments range from commercial real estate to solar energy plants. Most do not have a track record and are therefore not likely to attract investors surveying the entire field. These newer centers rely on foreign agents who generate investors from sales activities overseas where the specific center is the only one presented to investors. To view a list of all regional centers, please click here.

Risk Characteristics

The tabular data referenced in the box at the upper right side of the page summarize factual data about the regional centers. The factors below point to issues which may create risk of 1) loss of principal, or 2) failure to receive unconditional lawful permanent residence status (click on titles to see sub-issues).
Our firm will evaluate:

Legal Risks

Click to Expand

Job Creation Methodology


  1. RIMSII vs. IMPLAN vs. REMI
  2. Historical record with USCIS
  3. Past problems encountered with job creation methodology
  4. Conformance with 12/3/10 letter from USCIS regarding job creation outside geographic area
  5. Likelihood of USCIS challenge to job creation plan

Click to Expand

Material Changes in Project Plan


  1. USCIS definition
  2. Material changes in past
  3. Review of current business plan
  4. Review of contingency plans

Click to Expand

Targeted Employment Area


  1. Center’s definition of geographic area(s) in Approval Letter
  2. Risk of unemployment statistic changes in targeted employment area
  3. Risk factors of unemployment statistic changes in U.S. affecting targeted employment area

Click to Expand

SEC Compliance


  1. Management of agents and salespersons for “Regulation D” compliance
  2. Management of prohibition against “general solicitation or advertising” by Regional Center
  3. Policy on finder’s fees to agents in U.S. who are not registered with SEC

Click to Expand

Litigation


  1. Pending lawsuits against the Center, its principals or projects
  2. Pending lawsuits initiated by Center
  3. History of SEC or other regulatory agency problem
  4. Insurance coverage

Click to Expand

Systemic Risks


  1. Changes in U.S. tax law
  2. Changes in U.S. immigration law
  3. Prospects for Pilot Program renewal in 2012

Click to Expand

Immigration Petition History of Center


  1. I-526 petitions approved/pending/denied
  2. I-829 petitions approved/pending/denied
  3. Review of USCIS Requests for Additional Evidence
  4. Review of USCIS denial letters
  5. Relevance of past history to future performance

Financial Risks

Click to Expand

Equity vs. Loan Based Investment


  1. Pluses and minuses of each investment type
  2. Investment period and exit opportunities
  3. Risk factors compared

Click to Expand

Evaluation of Principals


  1. History, background and credentials
  2. Dun & Bradstreet report
  3. Experience with job creation
  4. Experience with U.S. immigration
  5. Experience with SEC compliance
  6. Affiliated Immigration Attorney
  7. Affiliated SEC Attorney

Click to Expand

Organization Issues


  1. Limited partnership vs. limited liability company, strengths and weaknesses
  2. Voting rights of partners/members
  3. Personnel turnover last two years

Click to Expand

Financial Strength of Underlying Business Entity


  1. Debt/Equity ratio
  2. Net Worth Statement
  3. Balance Sheets
  4. Cash Flow Statement
  5. Operating profit (EBIT and EBITDA)
  6. Strategic relationships
  7. Bankruptcy risk

Click to Expand

Competition Risks


  1. Evaluation of major competitors
  2. Market trends
  3. Restrictions against general partner competing with individual projects

Click to Expand

Financial Transparency


  1. Investor access to net worth and cash flow statements and other financial documents
  2. Frequency of reports to partners/members

Click to Expand

Exit Strategy


  1. Time period until investment may be liquidated
  2. Mechanism(s) for liquidating investment
  3. % of investment recovered by previous investors
  4. Investor options if job creation goals aren't met

Click to Expand

Yield on Investment


  1. Historic rate of return to investors
  2. Current year rate of return to investors

Click to Expand

Operating History of Current Project


  1. Funding secured to date % of total needed
  2. Number of investors to date % of total needed

The list above is not exclusive. It merely points to some common areas we explore when evaluating regional centers.

Regional Centers
in Brief

8
As of 7/25/14

Contact Us Online

Green CardCall Us Today

A PaperStreet Web Design