WHY REGIONAL CENTER MARKETPLACE
Regional Center Marketplace was created to bring together regional centers and developers that want to purchase (or rent) regional centers with regional centers that are available for purchase (or rental).
The EB-5 Reform and Integrity Act resulted in an unprecedented number of regional centers that are available for purchase. In many cases, the reason is that the regional center does not wish to sponsor new projects or investors with the vastly increased expenses, responsibilities and liabilities under the RIA. However, the regional center does not want to abandon its existing investors. Such regional centers realize that, if they simply go out of business, they get nothing; and they jeopardize their investors. On the other hand, if they sell the regional center, they can monetize a valuable asset, while at the same time protecting their investors.
Regional Center Marketplace can help
The RIA resulted in an unprecedented demand by developers to purchase an existing regional center. The reason for this relates to the expected exceedingly lengthy processing times for the approval of a new regional center on Form I-956. With many hundreds of I-956 forms being filed during the same period of time, approval of a new regional center may well take 2-3 years or more. That is an unrealistic wait for an active project seeking EB-5 financing. The alternative of buying a regional center and being able to seek EB-5 financing immediately is far more attractive.
Regional centers that want to expand their geographic areas have to file Form I-956 and wait many years for the approval before they can sponsor a project in the expanded geographical area. Buying a regional center may be a better and much more expeditious option.