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Appalachian EB-5 Regional Center fails to pay annual fee

 

MILL SPRING—The future of some investors seeking U.S. residency by funding the Tryon International Equestrian Center is uncertain as the Appalachian EB-5 Regional Center faces challenges with immigration officials over an unpaid annual fee.

The center has raised more than $200 million for the Tryon Equestrian Center, attracting investments from about 280 individuals.

The EB-5 visa program allows non-residents to obtain U.S. permanent residency by investing in new American businesses that create jobs. In rural areas such as Polk County, investors must contribute at least $800,000 to qualify.

In June, federal immigration officials warned the center that it could lose its right to operate after failing to pay a $20,000 annual fee required by a regulation change in 2022. The center filed a lawsuit, claiming it was not properly notified of the fees and deadlines, and said it sent the payment, but it has not been accepted.

“The issue is nationwide and is estimated to impact 50% of all regional centers,” Sharon Decker, president of Tryon Equestrian Partners Carolinas Operations, told the Tryon Daily Bulletin. “This is not solely an Appalachian Regional Center issue. Everyone is hopeful that a common-sense policy change will resolve this for everyone across the country. So, it’s premature for us to comment beyond this.”

If the Appalachian Regional Center loses its designation, investors awaiting visas may need to restart the application process with another center, potentially jeopardizing their immigration status and investments. The center’s termination could also lead to the loss of hundreds of millions of dollars in investments in western North Carolina and affect the creation of thousands of jobs.

The legal dispute centers on a 2022 policy change which requires regional centers with 20 or more investors to pay a $20,000 fee each year. The center’s attorneys argue that confusion over deadlines led to a “good faith mistake” based on their interpretation of U.S. Citizenship and Immigration Services provisions.

The center stated it has not received notice of late or missing payment for the fiscal year 2023 fee and is willing to pay it immediately, along with any reasonable penalty. However, USCIS issued a Notice of Intent to Terminate in late June 2024, leading to ongoing legal proceedings.

Concerns are mounting over the impact this could have on investors in western North Carolina. Tryon International Equestrian Center, a major beneficiary of Appalachian Regional Center investments, is expected to be less affected than other projects.