A regional center (RC) is the vehicle through which investors count indirect and induced jobs. If USCIS terminates a regional center’s designation, the investor’s I-526E or conditional green card does not automatically fail, but action is required within a set period. This article explains the protections the EB-5 Reform and Integrity Act of 2022 (RIA) provides for good-faith investors and the general steps involved. Specific deadlines and procedures are governed by the notice USCIS issues.
Why regional centers are terminated
The RIA significantly expanded regional center compliance obligations. Common grounds for termination include:
- Failure to file the annual statement (I-956G), or false disclosures in it.
- Failure to pay the Integrity Fund annual fee ($20,000 for regional centers with more than 20 investors, $10,000 for 20 or fewer).
- No longer promoting economic growth, with no active projects over an extended period.
- Fraud, misrepresentation, or securities violations by the regional center or persons involved with it.
- Failure to file bona fides declarations (I-956H) for persons involved as the RIA requires.
Termination is issued by USCIS notice, and the regional center normally has an opportunity to respond. Investors should distinguish a notice of intent to terminate from a final termination and track whether the regional center appeals.
Before and after the RIA
Before the RIA, termination of a regional center often meant pending I-526 petitions relying on it faced denial, and investors already holding conditional green cards could run into difficulty at the I-829 stage. The RIA added good-faith investor provisions to INA 203(b)(5) with three core changes:
- Termination does not automatically cause a good-faith investor’s petition to be denied or revoked.
- Investors may re-associate with another compliant regional center or project within a set period to remain eligible.
- A qualifying re-association retains the original priority date.
These protections presuppose that the investor acted in good faith: the investor did not participate in the conduct that led to termination, and the investment remains genuinely at risk.
The 180-day window: general rules
Under the RIA, after a regional center is terminated, USCIS notifies affected investors, who then have 180 days from the notice to complete re-association and submit amended materials. The general framework is as follows, subject to the terms of the USCIS notice:
| Item | General rule |
|---|---|
| Notice | USCIS notifies affected investors of the termination and the actions available. |
| Deadline | Re-association must be completed within 180 days of the notice. |
| Re-association options | Another compliant regional center (the original NCE and project may continue), or another compliant project (including a new NCE). |
| Submission | Amended petition materials filed with USCIS showing the new association and that funds remain at risk. |
| Priority date | A qualifying re-association keeps the original I-526E priority date. |
| Failure to act | A petition may be denied or revoked if no re-association is made in time. |
Re-association takes two forms with very different complexity:
- New regional center, same project: the NCE and JCE stay in place and another regional center “adopts” the project. Funds do not move, and the job analysis can usually be carried over. This is the path with the least impact on investors.
- New project: the original NCE must exit its investment and redeploy funds into a new NCE and project. This involves the original project’s ability to repay, the new project’s I-956F status, and fresh path-of-funds evidence. It is considerably more complex.
Conditions for retaining the priority date
The RIA allows an investor whose I-526E was approved to retain the priority date when refiling because of regional center or project termination. Note:
- Retention requires that the original petition was not revoked for fraud, willful misrepresentation, or material error.
- What is retained is the priority date, not the adjudication progress; the new association is still reviewed by USCIS.
- For applicants from backlogged countries, priority date retention is the most valuable part of this protection and should be confirmed first.
Investors already holding conditional green cards
Investors who have obtained conditional residence and have not yet filed, or are awaiting adjudication of, Form I-829 are also covered by the good-faith provisions. The focus differs:
- The I-829 turns on proving the investment was sustained and the jobs were created. If the project is complete and jobs exist, termination has limited effect on the job evidence, but supporting documents are still required.
- If the project is incomplete, investors may need to re-associate with another regional center so that job counting can continue.
- Conditional residence is automatically extended 48 months after I-829 filing, which provides time to manage the re-association.
Practical steps
After receiving a termination-related notice, the recommended sequence is:
- Verify the source and nature of the notice: confirm it is an official USCIS notice and distinguish intent to terminate, termination, and appeal status.
- Contact immigration counsel: calculate the start and end of the 180-day period and evaluate re-association paths.
- Obtain facts from the NCE manager and developer: whether the project is complete, whether funds remain at risk, and whether another regional center is willing to accept the project.
- Gather documents: the original I-526E approval notice, subscription agreement, proof of capital contribution, project progress reports, and the most recent regional center annual statement.
- Evaluate the receiving regional center: verify its designation status, compliance history, and timely payment of the Integrity Fund fee and filing of annual statements.
- File amended materials on time: counsel submits to USCIS within the deadline and retains proof of filing.
- Follow up: after re-association, monitor the new regional center’s annual statements and project updates.
Prevention over cure
Checking the following before signing lowers the chance of facing a termination later:
- The regional center’s designation status and recent annual statement record.
- Timely payment of the Integrity Fund annual fee.
- Whether the project’s I-956F has been approved.
- Whether the NCE uses a third-party fund administrator.
- Provisions in the offering documents addressing regional center termination.
More due diligence points are in Seven Core Points for Choosing an EB-5 Project.
Key takeaways
- Regional center termination does not automatically defeat a good-faith investor’s petition; the RIA provides re-association and priority date retention.
- Investors generally have 180 days from the USCIS notice to re-associate, with the exact deadline set by the notice.
- Changing regional center while keeping the project has the least impact; changing project involves moving funds and new evidence.
- Priority date retention requires that the original petition was not revoked for fraud or material error.
- On notice, verify immediately, consult counsel, gather documents, and file on time; pre-signing due diligence is the best prevention.