The brand new Type I-956 and I-956 H comprise a sequence of certifications and detailed private info necessities with respect to the integrity and backgrounds of the house owners, operators, and officers of the Regional Facilities administering investments. These certifications will probably be reviewed by USCIS and require Regional Center candidates to look for biometrics. The biometrics will probably be utilized by the USCIS together with different authorities companies to conduct in depth background and felony document checks on every particular person concerned in the possession and/or day-to-day operations of the Regional Center. Likewise, the Regional Center and associated entities might want to present info on their normal working procedures, protocols for guaranteeing securities regulation compliance, and their inner monitoring of the disbursement and use of investor funds, amongst different issues. The incorporation of the integrity measures is supposed to discourage and stop fraud in the EB-5 Regional Center program and enhance investor confidence in the Program. The certifications will should be made on an annual foundation, and compliance with all EB-5 provisions will likewise want be monitored by USCIS audits to be carried out no less than as soon as each 5 years and web site visits to be likewise be carried out for each undertaking increase that the Regional Center administers by USCIS.
Whereas these measures profit traders, they do come at a value to many Regional Facilities that might want to pay way more for sustaining compliance with the new necessities. This may occasionally end in fewer initiatives on the market for traders to select from. For instance, as of Might 18, 2022, USCIS indicated it had solely obtained 8 I-956 purposes for Regional Center designation. It’s unclear how lengthy the adjudication course of for the new types will take. Previous to the expiration of the Regional Center Pilot Program, new EB-5 Regional Center designation purposes have been taking on two years to be adjudicated. USCIS has interpreted the necessities underneath the EB-5 Reform and Integrity Act of 2022 to require that every one earlier Regional Center designations are null and void and anybody wishing to take part in the Program on a go-forward foundation will probably be required to file the Type I-956. Solely as soon as that Type I-956 is accepted will the Regional Center be capable of transfer on to the second step of the course of, which is to file a Mission Exemplar submitting requesting undertaking pre-approval from USCIS; this may even embody if relevant a Focused Employment Space (TEA) designation request. Buyers can solely file their purposes after the exemplar is submitted (not accepted underneath the USCIS interpretation).
All of this makes the timeline for submission of I-526 Regional-Center-based investor petitions unclear, and no info has been forthcoming from the Company as of this writing.