Whether the Regional Center is owned or leased, certain obligations apply to every EB-5 project
fund administrator or arranging for an annual CPA audit conducted under GAAP standards; complying with USCIS’ s biannual“ TEA letter” updates; and filing the annual I-956G form.
Regional Centers must also pay the Integrity Fund fee( prorated for leased centers), prepare for mandatory United States Citizenship and Immigration Services( USCIS) inspections every five years, and ensure proper site inspections— either of the project itself or of the Regional Center— by a qualified professional.
Leased and owned regional centers must consider the cost of filing the EB-5 project application( Form I-956F). This filing is a separate expense from the initial regional center designation. It can reach up to
$ 150,000, depending on factors such as service provider fees, the size of the offering, and the project’ s complexity.
Further consideration must be given to the increased cost of EB-5 capital to pay for potential agent commissions where applicable. Foreign migration agents often request an“ administrative fee,” paid by the investor in addition to the principal investment amount. While these fees are intended to cover project-related expenses, they may also be used— if properly disclosed through the Private Placement Offering Memorandum( PPM) and Form I-956K, Registration for Direct and Third-Party Promoters— to compensate foreign agents for successfully referring investors. Many agents also request an ongoing“ trail” payment based on invested capital, which cannot be drawn from the principal investment itself. These additional fees represent a meaningful cost consideration for EB-5 capital, whether the Regional Center is owned or leased.
Finally, if investor solicitation takes place in the U. S., securities laws may require engaging a licensed broker-dealer when intermediaries receive transaction-based compensation. Rule 506( c) permits general solicitation but requires the issuer to take reasonable steps to verify that purchasers are accredited investors. Rule 506( d) contains disqualification provisions that can bar an offering where specified bad-actor triggers exist. These rules are technical and fact-dependent, so sponsors should consult a qualified securities attorney to determine which exemptions apply and whether broker-dealer involvement is required.
LEASING VS. OWNING: STRATEGIC CONSIDERATIONS Choosing between leasing a regional center or establishing a new one depends on several project-specific factors. Developers must assess their level of EB-5 experience, the size and number of anticipated raises, how quickly they need to get to market, and whether they intend to stay in the EB-5 space for the long haul.
For time-sensitive projects, this decision can be consequential. As of August 2025, approximately 80 % of I-956 regional center applications are being processed between 4 and 18 + months.. That means a high percentage of cases are taking over 12 months for adjudication. taking longer— and for developers facing tight timelines, that uncertainty can pose a serious risk.
THE REGULATORY BOTTLENECK: TIMING MATTERS A key procedural limitation is that developers cannot file their project’ s I-956F form— which identifies the specific investment offering— until their I-956 regional center application is approved5. This delay creates a bottleneck, as the ability to raise EB-5 capital hinges on I-956F filing. Once the I-956F is submitted to USCIS, EB-5 capital raising can begin within ten days or upon receipt of the filing receipt notice, whichever comes sooner.
In contrast, leasing a regional center can bypass this delay entirely. When a developer partners with an existing USCIS-approved regional center, the I-956F can be filed immediately, assuming other requirements are in place. That speed-to-market advantage can make or break a time-sensitive project.
UNDERSTANDING THE LEASING MODEL Leasing a regional center can be likened to entering into a franchise agreement. Just as someone building a McDonald’ s must pay licensing fees to the franchisor in exchange for branding, systems, and support, EB-5 developers often pay an upfront fee and an annual percentage of raised capital to the regional center sponsor. Unlike McDonald ' s, though, the regional center does not control business operations beyond monitoring compliance with immigration and SEC regulations.
This arrangement allows developers to focus on their projects without having to build out the back-end regulatory infrastructure that EB-5 compliance requires. Fees vary but
Leasing a regional center can be likened to entering into a franchise agreement
EB5 INVESTORS MAGAZINE EB5INVESTORS. COM
11 ←