Southeast Regional Center Reveals How It Maintains a Stellar Track Record of Returning Capital and Securing Green Card Approval for Investors

Obtaining legal permanent residency in the US via the EB-5 Immigrant Investor Program comes with a degree of risk, as with all investments. For an investor to successfully receive their Green Card, they must satisfy the following conditions – make the necessary investment in a commercial enterprise in the US, with a plan to create or preserve 10 permanent full-time jobs for qualified US workers. If a project fails and is unable to generate jobs, then the application will be denied.

By making a financial investment, there is always a chance that the investor suffers losses and loses the money they invested in the project. However, there are ways to mitigate this risk, which Southeast Regional Center, LLC (SRC) has leveraged to allow it to return each investor’s capital contributions when due, while achieving approval of all of its adjudicated I-526 and I-829 petitions to date.

SRC’s stated mission is to reduce investors’ immigration and financial risks by delivering superior EB-5 investment projects in rural targeted employment areas, in compliance with all regulations from the United States Citizenship and Immigration Services (USCIS). Since receiving approval from the USCIS in 2010, SRC has completed multiple projects, especially in the auto manufacturing sector, which is seeing renewed investment thanks to the ongoing initiatives by the US government to revitalize the domestic vehicle manufacturing industry.

Over the years, SRC has maintained a successful track record across all elements of EB-5 investing – including investment project completion, capital preservation, and green card petition approval – which is something only a handful of regional centers in the US have achieved.

Michael Bowen, CFA, SRC’s Chief Financial Officer, believes that the firm’s track record of success in investment and green card petitions stems from its ability to find successful investment projects, as well as being able to spot which projects are most likely to fail, particularly those that were funded prior to the Reform and Integrity Act of 2022.

Bowen says he is concerned that many EB-5 investors pay too little attention to the financial aspects of the investment, as the EB-5 program’s main attraction is the successful issuance of a green card at the end of the process. He argues that this mentality leaves too much exposure to potential financial calamity. After all, the USCIS requires capital to be placed “at risk,” but that does not mean capital has to be placed in “high-risk” investments.

The question that remains on Bowen’s mind is: “If a project fails from a business and financial perspective, will the required jobs be created at all?” For example, a recent report from the US Government Accountability Office estimated that in 2021, less than 1% of EB-5 investment capital was lost due to fraud. The remainder of losses that year likely arose from other factors. Though the landscape changes over time, the available data suggests that financial and business risk factors should be kept front-of-mind by investors focused on preserving their investment capital. After all, “if an investor loses their capital from a business failure, that means the loss of qualifying job creation transforms the financial loss into a possible immigration risk as well,” Bowen says.

SRC focuses on projects with strong business plans, ample collateral and proven management teams to mitigate financial and business risk as much as possible. At the same time, the firm has only sponsored rural area projects to date, taking advantage of the priority visa processing offered by Rural TEAS. For example, since inception, SRC has launched five projects in collaboration with Ajin and Wooshin USA, which are auto parts manufacturers and exclusive tier 1 and tier 2 suppliers for Hyundai (OTC:HYMTF) and Kia motors in the US. Ajin and Wooshin USA are one of the largest employers in Chambers County, Alabama. These projects have attracted over $54 million in foreign investments and created sufficient qualified jobs to meet the EB-5 requirements. They are also fortified with senior bank loans, minimizing EB-5 reliance and boosting stability.

“Investors must be on alert for key financial disclosures and provisions when considering an EB-5 investment project,” Bowen says. “When in doubt, reach out to a trusted expert advisor (such as an attorney or CPA) to help comb through the documents for these key provisions. Even though the immigration aspects of a project are paramount, be sure to pay proper attention to the financial side of the investment.”

**This article is not an offer to sell securities in any way; the information presented within the article is only educational and/or for illustrative purposes only. No assurance or representation is made by any person that any forecast or projection will be achieved. Therefore, nothing contained herein should be relied upon as a promise, forecast, guarantee, or a representation regarding the future.