REGIONAL CENTER INVESTMENTS
The 10 employee requirement by the U.S. government deters many potential immigrant investors. The issue was resolved in 1993 when an option was created whereby immigrants may invest $500,000 or more in Center Investment Programs (CIS) -designated Regional Centers in a high unemployment area.
In this program, a promoter makes a proposal to the CIS. If the CIS believes it will benefit a regional economy and therefore shows potential for providing significant indirect employment, the project will be designated a Regional Center. With CIS approval, the promoter forms a limited partnership or corporation. Investors may apply for green cards upon making the investment.
Investors in a Regional Center
Investors in a Regional Center do not have to have day-to-day management responsibility or have provide proof that their business employs 10 people. In fact, they may rely on industry job multiplier statistics. A Regional Center means that the CIS is satisfied with the job creation potential. PPM.net can provide our clients with information about specific Regional Center Investments for you to perform due diligence analysis.
Examples of Regional Center Investments include:
1. A real estate limited partnership program that offers an investment in industrial properties in a specified major city. This program, which was granted CIS designation as a Regional Center in 1996, generally involves purchasing low-yielding warehouse properties with invested funds and converting them into higher-value mixed used properties, including office space, retail shops and storage space. Investors participate as limited partners of a limited partnership, and can earn regular monthly income from tenant rentals, as well as a share of future appreciation from the project, when sold. Investment periods vary, but cannot end before receipt of the permanent Green Card by the investor.
2. A limited partnership program that makes low interest loans to businesses in a specified major city. Business investment and development in this program, a CIS Regional Center designee since 2003, targets industry sectors that demonstrate strong indications of expansion, growing employment needs, and returns on investments. The Regional Center directs its efforts at financing projects and developing enterprises within targeted sectors, including hospitality and tourism, trade, technology, higher education, and transportation. The investment period of this program is 5 years.
3. Ownership of 80-acre almond farms in a specified location in California. The investment is used to create a business in California that is 100% owned by the immigrant investor. The business purchases 80 acres of land where almonds are developed, grown and harvested for export. It also purchases raw agricultural stock (almond trees), an irrigation system, plant nutrients and all necessary harvesting equipment and services to develop the land and export the harvested almonds for profit. The investment period for this program, which received CIS designation as a Regional Center in 2002, is 7 years.