EB-5 Guide
H-1B to EB-5: Complete Guide for Indian Professionals
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Regional Center Due Diligence
How to Evaluate an EB-5 Regional Center:
The 12-Point Checklist
Before you wire $800,000, you need more than a brochure. This checklist gives you the exact verification steps — USCIS status, SEC filings, escrow, job creation, attorney independence — that sophisticated investors use to separate legitimate Regional Centers from high-risk ones.
12Checklist items to verify
200+USCIS-approved Regional Centers
$800KTEA minimum investment
10Jobs required per investor
EB5Visa.io Editorial TeamJune 5, 202616 min readAttorney Reviewed
Why This Matters
Why Due Diligence Is Non-Negotiable
USCIS designation tells you an RC was approved — it does not tell you whether the RC is currently compliant, financially sound, or whether its specific project will create the 10 jobs your I-829 requires. These three realities define the due diligence gap every investor must close.
⚠️ What Can Go Wrong
Regional Center failures follow predictable patterns: construction halts when the developer overextended on multiple projects simultaneously; job creation falls short because the economist report used optimistic multipliers that USCIS rejected; capital is deployed before I-526E approval because there was no real escrow. Investors in these situations have faced I-829 denials with capital already at risk in a failed project.
✅ What the 2022 EB-5 Reform Added
The EB-5 Reform and Integrity Act of 2022 introduced mandatory annual RC filings (Form I-924A), USCIS authority to terminate RCs for non-compliance, enhanced escrow protections, and new requirements for RC officers to disclose conflicts of interest. These protections only help investors who know to look for compliance.
🔍 What Still Requires YOUR Verification
USCIS designation confirms an RC was approved — it does not evaluate specific projects, developer quality, or financial soundness. The PPM must be reviewed by your own attorney. Job creation projections are your responsibility to challenge. No government agency validates whether an RC is a good investment — that due diligence is yours.
Interactive Checklist
The 12-Point RC Evaluation Checklist
Filter by category. Click the checkbox on each card as you verify it. The scorecard above the checklist updates in real time — and tells you what to do next.
Live Progress
RC Evaluation Scorecard
Check items as you verify them. The ring updates in real time. Use it to track where you stand before signing any subscription agreement.
More research needed
Several critical items remain unverified. Do not sign any subscription agreement until you can check all 12 boxes.
0–4More research needed
5–8On track — keep going
9–12Ready to consult attorney
#1
USCIS
USCIS Designation Active
How to verify:
Visit uscis.gov/eb-5/regional-centers and search for the RC by name or I-924 number. Check both the approved list and the terminated list.
Pass: RC appears on the USCIS approved list. Re-designation date within the last 5 years. No appearance on the terminated RCs list.
Red flag: RC cannot provide their I-924 approval number. Name does not appear in the USCIS database. Re-designation more than 5 years old without renewal.
#2
SEC
SEC Registration / Form D Filed
How to verify:
Search EDGAR at sec.gov/cgi-bin/browse-edgar using the RC or project name. Look for Form D filings with Reg D exemptions (Rule 506(b) or 506(c)).
Pass: Form D filed within 15 days of first sale. Reg D exemption cited. No SEC enforcement actions found in the name search.
Red flag: No Form D on EDGAR. Enforcement actions (cease-and-desist, injunctions). Offering documents that don't disclose Reg D reliance.
#3
USCIS
Job Creation Methodology
How to verify:
Request the economist's report directly. Ask which USCIS-accepted model was used: IMPLAN, RIMS II, or REDYN. Verify it creates 10+ full-time U.S. jobs per investor.
Pass: Named economist with credentials. USCIS-accepted I-O model explicitly cited. Job count shows 12–15+ jobs per investor (buffer above minimum).
Red flag: "Proprietary" job creation model. Job count exactly at 10.0 with no cushion. Economist report not available for review.
#4
Financial
Escrow Arrangement
How to verify:
Ask: "Who is the escrow agent, and when are funds released?" Request the escrow agreement. Verify the escrow bank is an independent third party, not the RC or developer.
Pass: Funds held by a bank escrow agent independent of the RC. Released only upon I-526E petition acceptance, not just filing.
Red flag: No escrow — funds wired directly to RC or developer. Escrow controlled by the RC itself. Funds released upon filing rather than USCIS acceptance.
#5
Operational
Developer Track Record
How to verify:
Ask: "How many EB-5 projects has this developer completed? Did investors receive their capital back?" Request a list of completed projects and I-829 approvals.
Pass: Developer has completed 2+ EB-5 projects. Prior investors received capital return per stated terms. No project abandonment in history.
Red flag: First-time EB-5 developer. Prior projects stalled mid-construction. RC refuses to name the developer's completed project list.
#6
USCIS
TEA Verification
How to verify:
If the project claims TEA status ($800K minimum), request the actual USCIS TEA designation letter. Verify the project address falls within the designated area.
Pass: USCIS-issued TEA designation letter on file, addressed to this specific project/NCE. Project address matches the designated census tract or rural area.
Red flag: RC claims TEA but cannot produce the designation letter. TEA designation is from a state agency only — USCIS must confirm. No address-level verification.
#7
Legal
Attorney Independence
How to verify:
Ask the RC directly: "Is the attorney you recommend compensated by you in any way?" Ask the attorney the same question. Request the attorney's retainer agreement.
Pass: Attorney retained independently by you. Paid by you only. No referral arrangement with the RC. Attorney clearly states they represent your interests only.
Red flag: RC "provides" a recommended attorney. Attorney fees paid by the RC. Attorney unable to clearly state there is no referral fee arrangement.
#8
Financial
Admin Fee Itemization
How to verify:
Request the full "Use of Proceeds" table from the PPM. Confirm admin fees are disclosed as a separate line item — not deducted from the $800K capital.
Pass: Admin fee of $50K–$80K, listed separately. Clear breakdown: what portion goes to the RC, placement agents, and other parties. Capital of $800K reaches the JCE in full.
Red flag: Admin fees above $80K without explanation. Fees deducted from capital rather than paid separately. "All-in" pricing that obscures how much reaches job-creating enterprise.
#9
Operational
Construction Status
How to verify:
Ask for a construction timeline, building permits, and current site photos. Confirm whether ground has broken. "Shovel-ready" means permits in hand — not just "approved to start."
Pass: Construction underway with verifiable progress. Building permits pulled and active. Site photos dated. Completion timeline with contingencies explained.
Red flag: "Planning stage" only with no permits. Developer hasn't broken ground and is still acquiring the site. Construction timeline is a single optimistic number with no contingencies.
#10
Financial
Exit Strategy
How to verify:
Review the PPM's "Capital Return" section. Ask: "Who is the borrower? What is the loan term? What happens if the borrower cannot repay at the end of the term?"
Pass: Defined loan repayment structure with a named borrower (the JCE/developer). Repayment timeline post-I-829 approval. Collateral described. Refinancing plan if applicable.
Red flag: Vague statements like "capital returned when the project exits." No defined timeline. No named borrower. Capital structured as equity with no repayment obligation.
#11
Legal
Risk Disclosure Document (PPM)
How to verify:
Request the full Private Placement Memorandum before signing anything. It should contain: Risk Factors, Use of Proceeds, Management section, and Subscription Agreement.
Pass: Full PPM provided with named legal counsel. Risk Factors section is substantive — not boilerplate. Use of Proceeds shows exact allocation of the $800K.
Red flag: No PPM — only a "summary" or marketing deck. PPM missing Risk Factors or Use of Proceeds. Legal counsel listed is not a securities attorney.
#12
USCIS
USCIS I-924 Project Approval
How to verify:
Ask for the I-924 project approval notice for this specific project. This is different from the RC's general designation — it is an approval for the exemplar project or the specific offering.
Pass: I-924 exemplar approval for the specific project on file. Approval notice references the same NCE/JCE named in your subscription documents.
Red flag: No I-924 approval for this specific project (only the RC designation). RC cannot distinguish between the RC designation (I-924) and a project-level approval.
Due Diligence Deep Dives
Understanding the Documents That Matter
Four focused reference guides: how to read an SEC Form D, what a proper PPM contains, how to evaluate job creation projections, and the crucial difference between secured and unsecured capital deployment.
A Form D is the SEC notice filing for offerings using a Regulation D exemption. Every EB-5 Regional Center investment is a securities offering — if you can't find a Form D on EDGAR, the offering may be non-compliant.
Item 5 — Type of Filing
Should say "New Notice" for a first-time offering, or "Amendment" for updates.
Missing or never filed = major concern.
Item 9 — Issuer Information
Issuer name should match the NCE (New Commercial Enterprise) name in your subscription documents.
Mismatch between EDGAR issuer name and PPM entity name.
Item 10 — Industry Group
Will typically list "Real Estate" or "Construction" for most EB-5 projects.
Not material, but verify it matches the project type.
Item 15 — Total Offering Amount
Should match or exceed the total raise described in the PPM. Compare carefully.
Offering amount substantially lower than PPM raise = unreported capital.
Item 16 — Investors
Number of investors sold to date. Use this to assess how far along the raise is.
Zero investors after a long time = offering not moving.
Item 6 — Federal Exemption(s)
Should cite Rule 506(b) or Rule 506(c) under Reg D. Rule 506(c) allows general solicitation — verify RC's marketing matches the exemption claimed.
No exemption cited, or citing an exemption inconsistent with how you were solicited.
Access EDGAR at sec.gov/cgi-bin/browse-edgar → Company Search → enter the RC or NCE name → filter for Form D. Download the XML filing to see all fields.
Investor Questions
8 Questions to Ask Your Regional Center
These are the exact questions sophisticated investors ask RC representatives — before signing anything. Expand each question to see what a good answer sounds like and what a red flag sounds like.
One Rule Above All Others
Every item in this checklist can be verified independently — without relying on the RC's word. USCIS.gov, SEC EDGAR, and an independent immigration attorney are your three primary verification tools. If an RC resists any of these checks, that resistance is itself a red flag.
Continue Your Research
Editorial Disclaimer: This article is published for educational and informational purposes only. EB5Visa.io is not a registered broker-dealer, registered investment adviser, or law firm. Nothing in this article constitutes investment advice, legal advice, or a solicitation to purchase or sell any security. EB-5 immigration regulations change frequently. Always consult with a qualified, independent immigration attorney and financial adviser before making any investment decisions.