Direct EB- 5 Visa vs Regional Center

While most Indian Nationals pursuing EB-5 based Green Cards obtain them through the “Regional Center” route a number of our clients use “Direct EB-5” to either establish or expand their own, family-owned, businesses in the United States.

The “Direct” EB-5 program is therefore a route for HNI Indian investors to establish and operate their own businesses in the US. Approximately 90% of all EB5 cases are filed through a Regional Center.

By definition very few firms have any experience with “Direct EB5” cases where a client invests in their own business or in a business that is not offered through a Regional Center. Davies & Associates represents clients from across India who are obtaining their “green card” through the “Direct” route.

Investing through a Regional Center can be the easiest and fastest way to a “green card”. That said, choosing the right Regional Center is key. Choosing the wrong Regional Center can lead to disaster, the loss of your money and a failure to obtain a “green card”.

There are now well over 750 Regional Center registrations in the United States. While we are not a financial advisor we can provide clients with accurate historical information on the success of different Regional Centers. We can also provide legal due diligence on the background and qualifications of Regional Centers.

A key question is to understand your law firms experience with complex structured finance. Without this experience you lawyer will not be able to fully understand the nature of the risks involved.

An EB5 lawyer needs to be independent of a particular Regional Center because that EB5 lawyer needs to be able to negotiate against a Regional Center on your behalf or to take that Regional Center to court to obtain a refund of your money. A lawyer cannot negotiate against a Regional Center or take them to court for your money if that lawyer also represents that Regional Center or are being paid by it.

It is not uncommon for Davies & Associates to find errors in Regional Center documents or in the financial structure of the underlying deal. As an independent law firm Davies & Associates negotiate against the Regional Centers on behalf of Indian Investors to correct these defects. If we are not satisfied with the deal structure and documentation we will advise our client to withdraw from the investment. It is worth noting that Davies & Associates has obtained a 100% refund from a Regional Center where our Indian client decided to withdraw from the transaction.