NES Financial offers a series of articles written by industry experts addressing pressing issues in the EB-5 industry, such as the Rent-A-Center business model.
This article by Baker Tilly Capital’s Mickayla Zinsli, Is It the End of the Rent-A-Center? provides perspective and a detailed look at the practice of Regional Centers renting out their designations. Specifically, it discusses why proposed changes to the EB-5 program may threaten the business model.
Over the past years, many EB-5 Regional Centers have developed a business model whereby they essentially “rent out” their USCIS designation to third parties at a cost. This model may have worked in the past. However, current policy and proposed regulatory changes to EB-5 Regional Center program may eliminate the business model altogether.
Specifically, regulations have called for increased visibility and greater oversight of the capital investment and job-creating projects. These pitfalls are important not only for EB-5 Regional Centers, but also for future investors who may face consequences from the Rent-A-Center model.
Is It the End of the Rent-A-Center? provides valuable insight and information, including:
- An overview of the business model
- Increased integrity measures and greater oversight from USCIS
- USCIS imposed JCE site visits and Regional Center audits
- The potential fall-out for Rent-A-Center stakeholders
To read Is It the End of the Rent-A-Center?, download the full eBook, Insights from Experts: Medallion Partners Cover Hot Industry Topics.
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