The regional center is the sponsor of an EB-5 project. It files the project application (I-956F) with USCIS, submits annual reports, and carries compliance obligations for use of funds and job creation. However sound a project may be, defects at the regional center level can reach the investor: if a regional center is terminated, investors must move to another compliant regional center or project within 180 days to keep their priority date (subject to the terms of the USCIS notice). Due diligence on the regional center therefore matters as much as due diligence on the project. This article sets out what to verify and what to ask. For evaluating the project itself, see Seven Things to Check Before Choosing an EB-5 Project.
Designation status: I-956
The EB-5 Reform and Integrity Act of 2022 (RIA) requires every regional center, including those designated before the RIA, to file Form I-956 for designation or recertification under the new rules. Investors should confirm:
- The regional center appears on the approved regional center list published on the USCIS website, with a name and geographic area that match the project’s state and county.
- Whether designation was granted after the RIA or recertified from a pre-RIA designation. If it is still pending, understand the status and the associated risk.
- The geographic area covers the project site. A project outside the approved area may not obtain I-956F approval.
Annual reports: I-956G
The RIA requires regional centers to file Form I-956G each fiscal year (fee $3,035, changing to $2,165 on November 30, 2026; subject to the current USCIS fee schedule), disclosing use of capital, job creation, project progress, and compliance certifications. Failure to file can lead to fines or termination. Investors should ask:
- Has the regional center filed I-956G on time for recent years? Can it provide receipt notices?
- What do the reports disclose about projects under management, capital raised, and job-creation progress?
- Do the reports include certifications of securities-law compliance?
- Has USCIS issued any inquiries or requests for evidence on the reports?
A regional center may decline to share full reports on confidentiality grounds, but it should at least confirm filing status and provide a summary relevant to the project in question.
Prior project track record
Past performance is the most direct evidence of a regional center’s capability. Items to check:
| Item | What to look for |
|---|---|
| Completed projects | How many have been built and opened? How many are still under construction? |
| I-526 / I-526E outcomes | Were investor petitions in prior projects approved? Any denials or revocations? |
| I-829 outcomes | Have any investors removed conditions? This is the most persuasive record |
| Repayment history | Did prior projects repay the NCE on schedule? Any extensions, defaults, or restructurings? |
| Redeployment | Has redeployment occurred, how was it done, and were investors informed? |
| Litigation and complaints | Any investor lawsuits, securities investigations, or arbitrations? |
A newly formed regional center with no history is not necessarily riskier, but investors must substitute the personal track records of the management team and the strength of the project partners as their basis for judgment.
Sanctions and termination lists
USCIS publishes a list of terminated regional centers on its website and, since the RIA, has authority to fine, suspend, or terminate regional centers. Investors should check:
- Whether this regional center, or other regional centers controlled by the same principals, appears on the terminated list.
- Whether it has been sanctioned for failing to file annual reports, failing to pay the Integrity Fund annual fee ($20,000 for regional centers with more than 20 investors, $10,000 for 20 or fewer), or other violations.
- Whether it has been sanctioned or sued by securities regulators such as the SEC or state securities authorities.
Regional centers frequently change names or ownership. Searches should cover former names and the principal individuals.
Management and affiliated parties
The RIA requires persons involved with a regional center, including owners, managers, and anyone with substantive control, to file Form I-956H bona fides declarations and undergo background review. Investors should understand:
- Who actually controls the regional center? Names and backgrounds of owners, managers, and investment committee members.
- Is the regional center affiliated with the developer? If the developer formed or controls the regional center, lender and borrower are effectively the same interest. That is not illegal, but it demands stronger safeguards: an independent fund administrator, an independent NCE manager or investor representative, and explicit conflict-of-interest disclosure.
- Are promoters and migration agents registered? The RIA requires anyone directly or indirectly promoting an EB-5 project to register on Form I-956K. An agent who cannot explain their registration status should raise concern.
- Does the team have the staff and experience to manage several projects at once while meeting annual reporting, job tracking, and investor communication obligations?
Project-level compliance documents
For the specific project under consideration, also confirm:
- Whether the I-956F has been filed or approved, with the date and content of the approval notice. See I-956F Project Approval.
- The identity and qualifications of the third-party fund administrator and its independence from the regional center.
- Whether the private placement memorandum (PPM) adequately discloses fees, affiliations, and risk factors.
Questions to ask the regional center
The following can be used directly in correspondence:
- Please provide the USCIS I-956 approval (or recertification) notice and the approved geographic area.
- Has I-956G been filed for each recent fiscal year? Please provide receipts.
- Please list all prior projects and their status: construction progress, I-526E approval rate, I-829 outcomes, and repayment.
- Has the regional center or any principal been sanctioned, investigated, or sued by USCIS, the SEC, or a state regulator?
- Is there any ownership or control relationship between the regional center, the developer, and the NCE manager? If so, what safeguards are in place?
- Who is the fund administrator for this project, what are its qualifications, and is it affiliated with the regional center?
- Is the agent who introduced this project registered on Form I-956K? Who pays the agent’s commission and how much is it?
- How often and in what form will investors receive progress and use-of-funds reports?
- What contingency arrangements exist if the regional center is terminated?
A refusal or evasive answer to any of these is itself a signal worth recording. For common warning signs, see Ten Red Flags in an EB-5 Project.
Key takeaways
- Confirm the regional center is on the USCIS approved list and that its geographic area covers the project.
- Confirm recent I-956G annual reports were filed on time; failure can lead to fines or termination.
- I-829 approvals and repayment history in prior projects are the strongest evidence of capability.
- When checking termination and sanctions records, search former names and principal individuals.
- Where the regional center and developer are affiliated, insist on an independent fund administrator and conflict disclosure; promoters must be registered on Form I-956K.