CanAm and Other EB-5 Industry Leaders Reach Settlement Agreement that Clears Path for Regional Center Program to Move Forward

“It has been our honor and privilege to work with others who understood how important it was to have the EB-5 Program truly back to business for everyone. With this settlement agreement, we can all have full confidence in the integrity of the EB-5 program for all our investors,” said CanAm President and CEO, Tom Rosenfeld.

New York, NY. August 25. Multiple EB-5 industry stakeholders have entered into a settlement agreement with the United States Citizenship and Immigration Services (“USCIS”) that protects EB-5 investors and re-authorizes previously approved regional centers, effectively signaling the EB-5 program is fully back in business.

The settlement affects two cases: Behring Regional Center LLC, et al. v. Mayorkas, et al., No. 3:22-cv-2487-VC (N.D. Cal.) and EB5 Capital, et al. v. DHS, et al., No. 3:22-cv-3948-VC (N.D. Cal.). The plaintiffs include industry organization Invest in the USA (“IIUSA”) and six leading EB-5 regional center operators – CanAm Enterprises, Civitas Capital Group, EB5 Capital, Golden Gate Global, Pine State Regional Center, and Behring Regional Center. 

The key stipulations of the settlement – which can be read in its entirety here – are as follows:

• Previously authorized regional centers retain their authorization;
• Previously authorized regional centers must file a Form I-956 (or an already filed 956 will meet this requirement) by December 29, 2022, along with the filing fee to maintain authorization;
• Previously authorized regional centers need not wait for approval of their Form I-956 to file and receive adjudications from USCIS;
• Previously authorized regional centers may immediately file project applications;
• If, after filing a form i-956F, a regional center does not receive a formal receipt notice within ten calendar days of delivery to USCIS, an investor may use other forms of proof of the I-956F filing in their I-526E petition, such as a lock box receipt, cashed check or credit card charge provided by the regional center to the investor;
• The failure of a previously approved regional center to file a Form I-956 application or amendment will not, standing alone, be a basis for USCIS to deny an investor’s I-526 or I-829 petition;
• USCIS will update its website, forms, and instructions to conform to the terms of the settlement agreement.

“Judge Chhabria’s grant of a nationwide preliminary injunction, and USCIS’ subsequent agreement to a reasonable settlement, enables the EB-5 Regional Center program to move forward contributing to the U.S. economy and creating American jobs,” said Ron Klasko of Klasko Immigration Law Partners.

“Judge Chhabria’s thorough and well-reasoned decision provided the essential impetus for USCIS and the EB-5 industry to work constructively in reaching an agreement,” said Paul Hughes of McDermott Will & Emery. 

“We hope this marks the beginning of a new era of cooperation between USCIS and the EB-5 industry,” commented Laura Reiff of Greenberg Traurig.

The EB-5 Program has an overwhelmingly positive impact on the U.S. economy. Between 2008 and 2021, the EB-5 program helped generate $37.4 billion in foreign direct investment to create and retain U.S. jobs for Americans at no cost to the taxpayer.