Regional Center Economic Analysis: Selecting/Switching Impact Models

Question:

“What flexibility do Regional Centers have to utilize economic models for EB-5 projects that were not used as part of their original Regional Center proposal, which in many cases, was approved years ago? Both USCIS and the regulations have historically recognized models such as IMPLAN, RIMS II, and REDYNE as “reasonable methodologies,” but it’s unclear whether USCIS would accept a switch from the use of one of these to another. Clearly, switching economic models in the middle of a specific EB-5 project would be problematic and impractical, but there is nothing in the regulations that would prohibit the application of a different economic model on projects subsequent to the RC submission. Currently, the uncertainty has created the following concerns: (1) Ms. Atteberry indicated a preference for RIMS II during the June 2010 stakeholder meeting and many RCs had not previously adopted RIMS, (2) many RCs are now engaging more experienced economists, each of whom have their own personal preference for economic models, (3) the models themselves are improving and RCs would like flexibility to utilize advances, and finally (4) an amendment would impose a lengthy and expensive delay in getting much needed EB- 5 capital to projects that would create new jobs.”

Answer:

Adjudicative Issues:

• Switching model after the RC was approved requires an amendment
• See Form I-924 Application Instructions (http://www.uscis.gov/files/form/i-924instr.pdf)

Economic Issues:

• USCIS does not prefer or endorse any particular model
• RIMS II facilitates transparency
• Model preferences
• Remember your audience

Taken from EB-5 Immigrant Investor Program Stakeholder Meeting California Service Center March 17, 2011