Independent accounting firm verifies more than $1.6 billion repaid to CMB investors
CMB Regional Centers (CMB), one of the most experienced regional center operators in the EB-5 industry, today announced that more than $1.6 billion in investment capital has been repaid to investors across CMB EB-5 partnerships. The milestone has been verified by an independent, third-party accounting firm who confirmed $1.625 billion in capital repaid to investors.
“Investors entrust us with both their immigration goals and a significant amount of capital. We have always believed that responsibility demands transparency and accountability,” said Noreen Hogan, President at CMB. “More than $1.6 billion returned to investors is a meaningful milestone on its own. Having that track record independently validated provides another level of confidence in our track record and reflects the standards we have worked to uphold for nearly 30 years.”
Independent financial oversight has long been part of CMB’s approach to investor transparency. CMB has been recognized for pioneering the use of independent third-party audits of its EB-5 partnership financials more than a decade ago, establishing a practice that has endured and become an industry standard.
The repayment milestone builds on a track record that encompasses both financial success for investors and immigration outcomes. Earlier this year, CMB announced that more than 3,200 of its investors had received I-829 approvals—the highest total observed among regional center operators. An approval on Form I-829 signifies the removal of conditions on an EB-5 investor’s permanent residency status, indicating successful completion of the EB-5 Immigrant Investor Program.
About CMB Regional Centers
CMB has assisted over 7,000 investor families, from over 100 countries, in their pursuit of immigrating to the United States through America’s EB-5 Immigrant Investor Program. CMB EB-5 partnerships are projected to have created more than 215,000 American jobs.
An NPRM is a public announcement where a government agency (the Department of Homeland Security [DHS] and USCIS, in this case) proposes adding, removing, or changing regulations and invites feedback from the public on their interpretation and practical application of concepts they are considering.
The in-house team of economists and industry experts at CMB Regional Centers (CMB) is working hard to evaluate, analyze, and comment on the proposed regulations to ensure positive and intentional impacts to the EB-5 industry and for EB-5 investors [2]. It should be noted that what has been published is a draft only. Because the NPRM is only a proposed rule, the proposed regulatory text is not yet binding and does not, itself, change the legal standards applicable to current adjudications of either investor I-526E petitions or project I-956F applications.
Proposed Technical Changes
Some of the most important technical changes to the program, as proposed by the NPRM, are summarized below:
Targeted Employment Area (TEA) Methodology Update
The proposed rule prohibits the use of the so-called “census share methodology” used in High-Unemployment Area (HUA) projects by requiring the use of public data along with a description of the applicable weights and estimation of error and bias in these estimates. In practical terms, this could significantly limit the data sources available for HUA determinations and may require reliance on American Community Survey (ACS) data unless USCIS recognizes other public datasets that satisfy the final rule’s requirements.
If this proposal survives public comment and is finalized without clarification recognizing additional data sources, ACS data may become the principal or only practical dataset for many HUA determinations.
High-Employment Area
The NPRM sets new investment amounts for projects that principally do business in high-employment areas, better described as areas that have extremely low unemployment. The new investment amount in these areas would be $1,400,000. Under the proposed rule, a project located in a census tract with an unemployment rate below 150% of the national average could be treated as being in a high-employment area and therefore subject to the higher investment amount. In effect, if the project’s own census tract has low unemployment, the project may be prevented from qualifying as an HUA by combining that tract with nearby higher-unemployment tracts, even if the combined area would otherwise exceed 150% of the national unemployment rate. The proposal establishes that a regional center cannot qualify a project as an HUA if the project is principally located in a high-employment census tract.
This rule has the potential to limit projects in areas that would otherwise qualify as HUAs. As an example, if implemented, this proposal would make it difficult to establish an HUA for Manhattan (New York) under these new regulations because a regional center could no longer establish an HUA project by connecting adjacent census tracts with higher unemployment areas if the project itself is in a high-employment area census tract.
Codification of Integrity and Oversight Measures
USCIS proposes expanded authority for audits, site visits, investigations, and compliance reviews for regional centers, new commercial enterprises (NCE), job-creating entities (JCE), investors, and project sponsors. Many of the proposed integrity and oversight measures reflect existing USCIS practices or guidance, but codification would give those processes a more formal regulatory framework and may expand the compliance consequences for regional centers, NCEs, JCEs, investors, and project sponsors.
Regional centers must maintain strengthened recordkeeping, reporting, and compliance systems, while undergoing USCIS audits to align with anti-fraud goals legislated in the RIA.
Expansion of “Persons Involved” Interpretation
The proposed rule significantly expands the definition of a “person involved” far beyond both the statutory language and current practice. Under the NPRM, Form I-956H would be required for an expansive group of individuals associated with a regional center, NCE, or JCE, including administrators, board members, managers, officers, owners, and others in similar positions. The proposal also appears to include EB-5 investors serving solely as limited partners in an NCE. Beyond expanding who is considered a “person involved,” the rule would require a regional center amendment whenever a new person becomes involved or a significant person departs. Further, USCIS would suspend adjudication of pending project applications and investor petitions until that amendment is approved. Given current adjudication timelines, these requirements would effectively impair a regional center’s ability to operate by delaying project approvals and investor processing over routine governance and ownership changes.
In CMB’s view, this interpretation extends well beyond those individuals who exercise meaningful authority over EB-5 capital or regional center operations. For example, a limited partner in an NCE does not individually possess substantive authority over the pooling, securitization, investment, release, acceptance, control, or use of EB-5 capital. Requiring such individuals to satisfy Form I-956H requirements is inconsistent with both the statutory framework and the practical realities of how EB-5 investment entities are structured.
The proposed definition also creates substantial challenges for projects involving non-affiliated JCEs. Unlike the EB-5 statute, the proposed regulations make no distinction between affiliated and non-affiliated JCEs, meaning developers and their owners—even where they are independent of and not controlled by the regional center—could be deemed “persons involved” and become subject to Form I-956H attestations, biometric requirements, and related compliance obligations. Because regional centers do not control these independent parties, they may have little or no ability to ensure compliance, creating unnecessary regulatory risk and potentially discouraging otherwise qualified developers from participating in the EB-5 program.
While we support USCIS’s efforts to prevent bad actors from participating in the EB-5 program, the proposed definition sweeps far beyond those individuals who have actual authority over EB-5 capital or regional center operations. Rather than strengthening program integrity, the proposal would increase administrative burdens, impede regional centers’ ability to operate efficiently, delay project and investor adjudications, and discourage participation by reputable development partners—all without a corresponding benefit to investor protection or fraud prevention.
Bridge Financing
The NPRM proposes removing the long-established practice of attributing job creation that results from the use of bridge financing. Currently, in typical EB-5 structures, developers may use bridge financing as a temporary funding source until the full EB-5 capital is raised. EB-5 capital then replaces bridge financing, and investors may still count on expenditures and job creation that took place because of that contemplated and documented bridge financing.
If this proposed rule is adopted as-is, it would reverse a long-term established policy for USCIS. Due to the severity of the proposal as written, one must evaluate the intention which appears to be leaning towards a codified definition of “short-term” as opposed to a full-scale removal of the practice of bridge financing. The NPRM evidences and acknowledges that there are many examples where bridge financing has been successful in the EB-5 industry. Although the text could be read to substantially restrict or eliminate reliance on repaid bridge financing, USCIS’s request for comments may provide an opportunity for stakeholders to urge a narrower approach, such as defining permissible short-term bridge financing rather than eliminating the practice.
Priority Date Retention
Under certain circumstances, the NPRM would allow an EB-5 investor to retain the priority date from a previously approved or pending petition if a regional center is terminated or an NCE or JCE is debarred, provided the investor timely files the required amendment and establishes continued eligibility.
National Security and Fraud
The NPRM provides USCIS with broad authority and discretion in both national security and fraud findings. To the extent these provisions would be applied to pre-RIA filings or approvals, stakeholders may raise questions about retroactivity, reliance interests, and the scope of USCIS’s statutory authority. USCIS would have discretionary authority to deny and revoke prior approvals based solely on a threat to public safety or national security or when a benefit request under the EB-5 program is based on fraud, deceit, intentional material misrepresentation, or criminal misuse.
Timeline
The NPRM is now in the review and comment stage for the public. All comments are due by August 31, 2026, at which point USCIS will be tasked with analyzing and responding to all public comments before deciding on a final rule. Any final rule would be published in the Federal Register and would include agency responses to significant public comments and explanation of the basis for the final regulatory text. Perhaps most importantly, the final rule will include specific dates when it becomes binding on future filings and adjudications.
The timeline between a proposed rule and final rule can be lengthy. For example, the last proposed rule to govern EB-5, the EB-5 Immigrant Investor Program Modernization Rule (also known as the “Mod Rule”) was published in draft form on January 13, 2017. That NPRM did not become final until July 24, 2019 (2.5 years after publication of the draft) and only became effective on November 21, 2019 (two years and 10 months after publication of the draft).
Conclusion
Some of the proposed regulations streamline and simplify the decision process for USCIS, such as limiting HUA qualification to ACS data, while other proposed regulations expand the compliance burden on the industry at-large, such as the broadened interpretation of “Persons Involved.”
The NPRM provides regional centers, prospective investors, and current petitioners with a unique opportunity to voice their concerns and feedback regarding the proposed regulations.
Additionally, the proposed regulations provide a rare glimpse into how USCIS is thinking and what specific problems and priorities that they believe need further explanation. CMB looks forward to providing detailed analysis and comments to broaden USCIS’ understanding of the EB-5 industry.
CMB has assisted over 7,000 investor families, from over 100 countries, in their pursuit of immigrating to the United States through America’s EB-5 Immigrant Investor visa program. CMB currently maintains a 100% project approval rate[1] across more than 90 partnerships that have undergone USCIS adjudication.
[1] This is a statement of prior performance and does not guarantee future results.
[2] CMB has no control over the rulemaking process, the timeframe in which new rules are implemented, or how these new rules may be applied once implemented. As the rulemaking process moves forward, there is no certainty regarding what or how DHS or USCIS may implement. As such, CMB’s position and commentary on the NPRM is subject to change without prior notice.
The CMB Group 96 student housing project officially reaches full structural height adjacent to the University of Oregon
CMB Regional Centers (CMB), one of the most experienced regional center operators in the EB-5 industry, today announced that The Ellis, the mixed-use student housing development associated with CMB Group 96, has reached full structural height in Eugene, Oregon.
During a July 22 topping-out ceremony, project developer Fields Holdings and the construction team celebrated the completion of the structure of the 14-story tower. The milestone represents substantial completion of the building’s primary vertical structure and a significant step toward the project’s anticipated completion next summer, earlier than originally scheduled.
Located at the gateway to the University of Oregon campus, The Ellis is being purpose-built to serve the local student housing market. The development will combine modern off-campus residences with ground-floor retail and a range of high-end, student-focused amenities.
“From the beginning, we knew this site was exceptional,” said Eran Fields, Principal of Fields Holdings. “Located at the entrance to the university and at the start of the area’s retail corridor, it’s one of the most desirable locations in the market. We’re proud to celebrate this milestone as construction continues better than scheduled.”
The topping out is the latest milestone for CMB Group 96 following receipt of Form I-956F approval from United States Citizenship and Immigration Services (USCIS) last month. The I-956F approval signifies that USCIS has determined the EB-5 project meets applicable program requirements, making CMB Group 96 investors eligible for adjudication of their I-525E petitions for conditional permanent residency.
“Developer expertise and execution experience are central to CMB’s project-selection standards,” said Matt Hogan, Senior Vice President of Project Development at CMB. “We look for developers with demonstrated experience in the relevant asset class and a track record of carrying complex developments through construction and completion. Fields Holdings has established that capability in student housing, including through our prior collaboration on The M. The Ellis reaching full structural height is a meaningful reflection of the disciplined execution we seek when selecting EB-5 project partners.”
CMB Group 96 represents the second student housing collaboration between CMB and Fields Holdings. Their previous collaboration, CMB Group 71 – The M, involved the development of a student housing tower near the University of Washington in Seattle. The development was completed in 2020, and Fields Holdings fully repaid the CMB Group 71 EB-5 loan in less than four years. Many CMB Group 71 investors have obtained conditional permanent residency and are eligible to file Form I-829 petitions for removal of conditions on their residency.
CMB Group 96 is currently open for subscription, with limited availability, and is located in a High-Unemployment Targeted Unemployment Area (TEA), qualifying investors for the reduced EB-5 investment threshold.
About CMB Regional Centers
CMB has assisted over 7,000 investor families, from over 100 countries, in their pursuit of immigrating to the United States through America’s EB-5 Immigrant Investor Program. CMB EB-5 partnerships are projected to have created more than 215,000 American jobs.
Disclaimer: Past performance should not be relied on as a predictor of future results. This is not an offer to sell securities or the solicitation of an offer to purchase securities. Any offer to participate in any sponsored partnership may only be made pursuant to a written offering memorandum and any sale in such limited partnership shall be evidenced by a subscription agreement executed by a foreign national. EB-5 interests to be offered through Prevail Capital, LLC, an SEC registered broker- dealer and a member of FINRA/SIPC. An EB-5 investment contains many risks, is speculative, and illiquid. EB-5 Investors may lose their entire investment. There is no guarantee that an EB-5 investment will result in lawful permanent residency.
CMB Regional Centers (CMB), one of the most experienced regional center operators in the EB-5 industry, today announced that its CMB Group 101 – Venture Build-to-Suit (BTS) EB-5 project has received I-956F approval from United States Citizenship and Immigration Services (USCIS). The announcement marks CMB’s 96th project approval, a track record underpinned by a 100% approval rate for projects that have been adjudicated by USCIS.
The I-956F approval confirms that the project meets USCIS requirements, allowing CMB Group 101 investors to proceed with immediate adjudication of their I-526E petitions, a significant milestone on the path toward permanent residency in the United States.
“Group 101 represents exactly the type of opportunity CMB was built to deliver—a rigorously underwritten project located in a high-unemployment area where EB-5 capital can make a meaningful difference,” said Noreen Hogan, President at CMB. “Our latest project approval clears the path for our investors to take the next step on their immigration journey, and we could not be more thrilled for them.”
CMB Group 101 involves the development of a Class-A build-to-suit regional distribution center facility in the greater Detroit, Michigan area. The region is home to one of the world’s densest automotive supply chains, with 96 of the top 100 automotive suppliers in North America maintaining a presence in Michigan.
About CMB Regional Centers
CMB has assisted over 7,000 investor families, from over 100 countries, in their pursuit of immigrating to the United States through America’s EB-5 Immigrant Investor Program. CMB EB-5 partnerships are projected to have created more than 215,000 American jobs.
Given the extensive risks and speculative nature of private placements generally, and EB-5 investments specifically, any person considering participation in a private placement with an EB-5 immigration component should carefully consider and understand common risk factors that may be experienced.
This summary is not exhaustive. Specific risk factors for a particular private placement will be stated in the applicable private placement memorandum and other offering documents.
Common Financial Risk Factors
Any prospective investor should understand that:
they may lose their entire investment, including other costs and fees paid;
investment capital is not guaranteed nor does it have rights of redemption;
investment returns are not guaranteed;
the investment is not transferrable or has limited transferability;
the investment is in an illiquid security;
the investment is generally in a new business enterprise with limited or no operating history;
the investment may be subordinate to other financing arrangements;
the investment might not be secured against an asset or may have only limited security;
investments might not be repaid on time or at all.
Please consult your financial advisor for guidance on your investment and the risk factors associated with your own specific circumstances.
Common Immigration Risk Factors
A prospective investor should understand that:
they may be denied a visa if they provide false or misleading information to United States Citizenship and Immigration Services (USCIS) or the U.S. Department of State;
they may be denied a visa if they have certain political affiliations;
they may be denied a visa if they have committed a crime of moral turpitude or other crimes;
they may not receive a visa if insufficient jobs are created;
they may not receive a permanent visa if their investment is not sustained;
they may not receive a permanent visa if a material change to the business plan occurs;
a derivative child family member may “age out” and become ineligible for a visa under their investor parent’s application;
USCIS might revoke the designation of a regional center, potentially causing investors to lose immigration benefit;
USCIS may revise or update existing policy in a way that adversely impacts a pending or previously submitted petition;
Congress may substantially change immigration laws and apply those changes retroactively; and
Congress may cancel or allow the EB-5 regional center program to lapse.
Please consult your immigration attorney for guidance on your immigration pursuit and the risk factors associated with your own specific circumstances.
Past Performance Risks
Past performance should not be relied on as a predictor of future results.
Forward-Looking Statement Risks
Forward-looking statements are based on information available on the date of publication. Such statements may contain errors or omissions and are subject to change without advance notice.
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