The EB-5 Reform and Integrity Act of 2022 created a statutory requirement for USCIS to audit each designated regional center at least once every five years under INA § 203(b)(5)(E)(vii). The audit mandate goes beyond a simple document review. USCIS auditors now examine the flow of investor capital into specific projects, verify job creation claims, and assess whether regional center operations conform to the representations made in their designation applications.
A project’s compliance deficiencies may create additional scrutiny in associated investor petitions, including Form I-829 proceedings, particularly where the deficiencies affect proof of qualifying investment, job creation, capital deployment, or the investor’s continued eligibility. However, an unfavorable regional center audit result does not automatically require denial of an investor’s petition.
The Audit Framework and What It Actually Covers
USCIS began using Generally Accepted Government Auditing Standards, commonly known as the Yellow Book, for regional center audits starting April 23, 2024. The use of GAGAS provides standards for planning and conducting the audit and for obtaining sufficient appropriate evidence to support audit findings. As a practical matter, regional centers should be prepared for detailed document requests and evidence-based inquiries.
The audit scope is defined by statute. Under INA § 203(b)(5)(E)(vii), the audit must include a review of any documentation the regional center is required to maintain and a review of the flow of immigrant investor capital into any capital investment project. In practice, USCIS auditors perform tasks that include reviewing applications and certifications, verifying supporting documentation, conducting in-person site visits when applicable, assessing internal controls related to administration and oversight, analyzing financial documentation, and interviewing personnel to confirm the validity of information provided.
USCIS may use the audit findings to evaluate the regional center’s compliance and continued eligibility, as well as related applications, petitions, and filings where relevant. For investors, the critical point is that an audit may extend beyond the regional center’s administrative records. USCIS may review project-related documents and the flow of investor capital where those materials are relevant to the regional center’s compliance and associated EB-5 filings.
If the regional center cannot adequately document capital deployment or job creation for a project, USCIS may subject affected investor petitions to additional scrutiny, depending on the facts and the evidence available in each case.
What Auditors Request and Why It Matters
The documentation USCIS expects during an audit reflects the regional center’s ongoing obligations under the RIA. The regional center must be prepared to present books, ledgers, records, and other documentation it is required to maintain, along with updates and any information requested in the audit questionnaire that has not already been provided. USCIS may also ask for additional support to verify information in the regional center’s associated petitions, applications, or annual statements.
USCIS may request investor-level information, including the amount and timing of capital contributions, the movement of funds, the status of associated petitions, and any returns or distributions, as necessary to verify compliance. USCIS may also request information about the industries receiving investor capital, the identity of direct job-creating enterprises, and the categories of jobs claimed, where necessary to verify compliance.
This level of detail means that regional centers cannot rely on general project-level summaries. The audit may require project-specific documentation and, where USCIS deems it necessary, investor-level data. If the regional center’s records are incomplete or inconsistent, the discrepancy may be identified during the audit. The effect on an individual investor depends on the facts of the case and on whether the investor can independently establish the I-829 eligibility requirements. Good-faith investors may have statutory protection under INA § 203(b)(5)(M) after certain regional center terminations or the debarment of an NCE or JCE.
Site Visits, Material Changes, and the Limits of an Approved Project Application
An audit may be conducted virtually or in person. When applicable, an in-person audit site visit may include verification of property or equipment, walkthroughs of internal controls, and employee interviews. An audit site visit is distinct from an FDNS site visit conducted under separate authority.
For investors, the significance of a site visit lies in the possibility that USCIS may identify discrepancies between the project’s documented representations and its actual operations. Material changes may affect the treatment of an approved Form I-956F project application and related investor petitions. USCIS generally gives effect to an approved Form I-956F project application. However, USCIS may revisit the prior determination if a material change affects eligibility, fraud or misrepresentation is involved, previously undisclosed evidence affects eligibility, or the prior approval was legally deficient because of a material error of law or fact.
The regional center should assess whether the change must be reported through Form I-956G, an amendment to the project application, or another filing required by the applicable rules. The legal effect depends on the nature and timing of the change and on whether the change affects the investor’s eligibility. The practical lesson is that regional centers and project sponsors must maintain a current record of project developments and be prepared to explain any deviations from the approved plan.
The I-956G Connection and Investor Access
The audit draws on multiple sources of information. Form I-956G, Regional Center Annual Statement, is one of the key sources USCIS may review during an audit, but the audit may also cover the regional center’s designation materials, project applications, associated petitions, books, ledgers, financial records, and records maintained by affiliated NCEs or JCEs.
Under the RIA, regional centers must file Form I-956G, Regional Center Annual Statement, and provide certifications, financial information, and other project-related information required by the form. The regional center is responsible for preparing and filing the annual statement. Depending on the offering documents and fee structure, administrative costs may be allocated to an NCE or reflected in fees paid by investors.
The I-956G filing and the audit are connected because USCIS may compare the information reported in the annual statement with the regional center’s underlying records and associated filings. If the annual statement contains inaccurate or incomplete information, USCIS may identify the discrepancy during the audit. For investors, this means that the regional center’s reporting discipline is a leading indicator of audit readiness. Late filings, missing information, or unexplained inconsistencies may indicate weaknesses in the regional center’s compliance and recordkeeping systems and should be investigated during due diligence.
Investors should ask the regional center for the portions of the annual statement and related compliance information that concern the investor, the relevant NCE, or the relevant JCE, subject to applicable statutory and contractual limitations. The scope of any disclosure, applicable redactions, and response deadline should be determined under the current statutory text, USCIS guidance, and the investor’s contractual rights.
How Investors Can Protect Themselves
For anyone weighing an EB-5 regional center investment, the most effective protection is due diligence that begins before the investment is made. Investors should verify, to the extent possible through publicly available USCIS information, that the regional center appears on the current list of designated centers and that no termination notice has been published. They should also request and review available information about the Form I-956F project application, offering documents, subscription agreement, and material project disclosures, and investigate any material inconsistencies between those materials.
For investors already in a project, the practical steps are limited but meaningful. Maintain complete records of the investment: the subscription agreement, wire confirmations, the offering documents, and any communications from the regional center or project sponsor. Monitor the regional center’s compliance status through publicly available information, including any USCIS notices regarding the center’s designation. If the project experiences material changes, document the investor’s awareness and any communications from the sponsor about how the changes affect job creation or capital deployment.
The RIA includes investor-protection provisions for certain good-faith investors affected by the termination of a regional center’s designation or participation, or the debarment of an NCE or JCE. In certain termination or debarment situations, affected good-faith investors may need to file an amendment or otherwise notify USCIS that they intend to preserve eligibility. USCIS guidance generally refers to a 180-day period after notice, but the applicable deadline, filing method, and available options depend on the investor’s filing history, the type of termination or debarment, and the instructions in the specific USCIS notice. USCIS has also described special considerations for certain pre-RIA investors, including possible procedural flexibility regarding the response deadline. These provisions do not guarantee continued eligibility in every case, particularly where the project failed to create the required jobs and other conditions were not met.
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Investors generally do not control the regional center’s cooperation with a USCIS audit. If a regional center does not consent to an audit or deliberately attempts to impede an audit, USCIS will terminate the regional center’s designation. Investors’ contractual and statutory rights to obtain project information may vary, but they should review the offering documents and request available annual statements and project reports promptly.
