International Law and Immigration

Ca. Int'l Law Journal VOL. 25, NO. 1, FALL 2017

Risk Factors in EB-5 Regional Center Private Placement Memoranda

By William Tolin Gay*

I. INTRODUCTION

The EB-5, or immigrant investor, visa provides a means for wealthy foreigners to invest in a new business enterprise in the United States, create jobs, and thereby obtain the right to permanent residence. For many years, most EB-5 applicants have elected to invest in existing, government-approved businesses called "Regional Centers."1

For a number of reasons, the favored business structure for the Regional Center has been the limited partnership (LP). Use of the LP for Regional Centers has express sanction of the federal immigration authorities, provided the immigrant investors are sufficiently involved in the management of the business enterprise. Failure to become sufficiently involved in management could result in denial of the visa.

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