US Economy Looking Good for EB5 Visa Investors

[Source: WhichEB5]

If you are presently thinking about making a permanent move to the USA through the EB5 visa, but have some concerns about your timing, in connection with the performance of the US economy, a recent report from Wells Fargo will be of interest to you.

The report, backed up by a lot of impressive evidence, indicates strong future prospects for the USA and considers five particularly important areas, profitability, innovation, resources, stability and people to draw a very positive conclusion.

The US is the leading country in research and development in eight out of ten technology areas including:-

• Agriculture and food production
• Aerospace, rail and non-auto transportation
• Military aerospace, defense and security
• Composite, nanotech and other advanced materials
• Energy generation and efficiency
• Healthcare, medical, life science and biotech.
• Information and communications|
• Instruments and non ICT electronics

Read article in full: US Economy Looking Good for EB5 Visa Investors 

CONTACT US EMPIRE STATE EB5 REGIONAL CENTER TODAY!

1160F Pittsford Victor Rd.

Pittsford, New York 14534

Tel: (866) 763-6515
EMAIL HERE or WEBSITE HERE

Making Permanent EB-5 Program and Improvements to EB-5 Job Counting Method

 In his plan to making the EB-5 pilot program permanent Sen. Patrick Leahy, D-Vt.is proposing a list of improvements focused on stronger staffing, streamlining the review process for applications and business plans, better reporting, and defining the what full time employment as it pertains to the EB-5 job requirements.   Full-time employment is currently defined as 35 total hours a week, per year, per employee (approximately 1,750 hours per year). Sen. Leahy’s proposal would count 1,750 hours worked as a full-time position towards the EB-5 job requirement regardless if the work is done by a single person or multiple individuals.An EB-5 investors investment must create 10 permanent full time jobs for American workers in order to qualify for a Untied States Green Card.
Read further:Senator Leahy’s Amendment Sectional  

EB 5 Visa Costs More Depending on your Currency

[Source: Stephen Parnell, WhichEB5.com]  

Will your EB 5 visa cost rise based solely on your currency?

If you have decided that the EB 5 visa provides your best opportunity for obtaining permanent residency status for you and your family you may wish to act sooner than later, depending on which country you and your funds are now in.

The US dollar has strengthened against a number of currencies. A number of economic and currency analysts believe it will rise further against certain currencies over the next few months.

The immediate reason behind this strengthening of the dollar is the signals from The US Federal Reserve that its purchases of bonds with newly created money may begin to tail off, possibly as early as September.

Just the possibility of quantitative easing has had the effect of pushing up long-term interest rates. In turn the increase in yields on US treasury bonds attracts capital from riskier parts of the world pushing up the value of the US dollar.

Along with this impact, the increasingly positive stories about the US economy all add to the attraction of the dollar; particularly when compared to the economic bad news stories about other parts of the world.

Complete article here:EB5 Visa Cost More Depending...

The Department of State has issued the following Worldwide Travel Alert

[Source: U.S. Embassy Seoul]

The Department of State has issued the following Worldwide Travel Alert to update information on the continuing threat of terrorist actions and violence against U.S. citizens and interests throughout the world:

The Department of State alerts U.S. citizens to the continued potential for terrorist attacks, particularly in the Middle East and North Africa, and possibly occurring in or emanating from the Arabian Peninsula.  Current information suggests that al-Qa’ida and affiliated organizations continue to plan terrorist attacks both in the region and beyond, and that they may focus efforts to conduct attacks in the period between now and the end of August. This Travel Alert expires on August 31, 2013.

Terrorists may elect to use a variety of means and weapons and target both official and private interests. U.S. citizens are reminded of the potential for terrorists to attack public transportation systems and other tourist infrastructure.  Terrorists have targeted and attacked subway and rail systems, as well as aviation and maritime services. U.S. citizens should take every precaution to be aware of their surroundings and to adopt appropriate safety measures to protect themselves when traveling.

We continue to work closely with other nations on the threat from international terrorism, including from al-Qa’ida. Information is routinely shared between the U.S. and our key partners in order to disrupt terrorist plotting, identify and take action against potential operatives, and strengthen our defenses against potential threats.

We recommend U.S. citizens register their travel plans with the Consular Section of the U.S. Embassy through the State Department’s travel registration website.  We strongly recommend that U.S. citizens Traveling abroad enroll in the Department of State’s Smart Traveler Enrollment Program (STEP).  STEP enrollment gives you the latest security updates, and makes it easier for the U.S. embassy or nearest U.S. consulate to contact you in an emergency.  If you don’t have Internet access, enroll directly with the nearest U.S. embassy or consulate.

For the latest security information, U.S. citizens traveling abroad should regularly monitor the Department of State’s Internet website at travel.state.gov where the Worldwide Caution, Country Specific Information, Travel Warnings, and Travel Alerts can be found.  Follow us on Twitter and the Bureau of Consular Affairs page on Facebook as well. Download our free Smart Traveler app, available through iTunes or Google Play, to have travel information at your fingertips.

In addition to information on the internet, travelers may obtain up-to-date information on security conditions by calling 1-888-407-4747 toll-free in the United States and Canada or, from other countries, on a regular toll line at 1-202-501-4444.  These numbers are available from 8:00 am to 8:00 pm Monday through Friday, Eastern Time (except U.S. federal holidays).

Complete information here: Travel Alert

Hotels Growing in Popularity with use of EB-5 Financing

(Source: Ali Brodie, Greenberg Traurig)  Although the program has been around for a number of years, it is only recently that EB-5 financing has become popular for hotel development with major flags including Marriott, Starwood, Hyatt, and Hilton successfully utilizing this alternative form of financing.  With traditional construction financing difficult to obtain, many hotel developers have turned to EB-5 financing, realizing its benefit as both a creative way of attracting financing from foreign investors, and marketing hotel brands internationally.  Hotel developers favor raising capital through the EB-5 program as it is considered a relatively cheaper source of financing, frequently offering returns of less than 4%, when compared with higher interest rates on debt and other riskier forms of financing.  From the investor’s perspective, the United States is attractive because of its political and economic stability, healthcare, and educational opportunities for children.  The investors, the majority to-date being Asian, are primarily concerned with obtaining a green card through investing in a regional center project that creates the requisite 10 new jobs per investor and will return their funds (capital at risk) within 5 years, not necessarily with the return on investment.   Many investors select EB-5 regional center hotel projects because they identify with the property operated by an internationally recognized hotel brand, and they see the increasing profitability and stability of the U.S. hotel industry.  We suggest the following tactics for EB-5 hotel developers to make your project competitive: It is critical to obtain strong branding by associating with a brand that is recognizable in the investor’s home country.  This adds to the credibility of the project.  Investor’s favor investments with brands which are both familiar and prestigious. Similar to hotel branding is the developer’s track record.  Investors have to trust the developer of the project investment.  Experienced developers should provide investors with information relating to past successes in order to gain investor trust. Ensure that your project is located in a Targeted Employment Area (TEA).  The TEA designation allows the qualifying investment to be reduced from $1 million to $500,000.  The majority of EB-5 projects being marketed to investors are at the $500,000 threshold, and to be competitive in the marketplace, it is crucial that the hotel project be located in a TEA. Geographic location of the project should also be considered, understanding that investors often times will invest in projects located in cities that are centers of commerce, appealing, and easy to visit.  The capital stack must include more than just the EB-5 funds.  Investors like to see that the developer has some skin in the game.  Likewise, projects that have too much EB-5 financing are perceived as riskier in the event the developer is unable to raise the required amount of EB-5 capital. Job creation is critical to the investor being able to obtain a permanent green card.  The developer should work closely with an economist to determine the projected job creation and the corresponding number of investors allowed for EB-5 funding.  Each investor is required to create 10 full-time jobs.  It is always recommended to create more jobs than required in order to have a job creation cushion. Every investor will want to understand the exit strategy associated with their investment.  While EB-5 financing can count as a meaningful part of the capital stack, it is important that the EB-5 funds are used appropriately in accordance with requirements established by the U.S. Citizenship and Immigration Services.   Article here: http://www.eb5investors.com/

NYSERDA - Thousands of new construction and major renovation projects

With the wave of high temperatures and humidity across New York State, the New York State Energy Research and Development Authority has urged the public to continue to take steps to reduce energy use.

Thousands of new construction and major renovation projects have now benefited from the hundreds of millions of dollars in capital cost incentives provided by the NYSERDA NCP.  How the Program's capital incentives encourage improved building energy efficiency performance is reasonably well understood.  Sometimes less well understood is the role played by our Outreach Project Consultants (OPCs).

To follow-up on my last information update, here is a short list of some of the services our OPCs provide:

1.          An OPC (one of our architects or engineers) reviews applications for accuracy and may assist with an application's completion.
2.          OPCs work with stakeholders and their design teams to develop a program participation plan that best fits the needs of each project.
3.          An OPC also will schedule and participate in Scoping Meetings, which define what is to be included as part of the project.
4.          An OPC coordinates the activities of the Technical Assistance (TA) providers, should that option be chosen.
5.          Reviews technical assistance scopes of work
6.          Identifies opportunities with the applicant and may conduct LEED® charrettes
7.          Promptly and effectively responds to applicant questions and requests for assistance
8.          Our OPCs services are 100% free of charge.

Please remember that your help is important to making sure that the Consolidated Funding Application (CFA) process is done early enough in the project cycle for your clients to take full advantage of the NCP.

NYSERDA Website - http://www.nyserda.ny.gov/

Contact: Jim Bittker for more information on NYSERDA @ 585-943-7604 or email:jbittker@spc-ny.com

"Hola soy de México" - Empire State EB-5 Regional Center Mexico Investor Tour

Empire State EB-5 Regional Center has been in Mexico for the past two weeks meeting with potential EB5 investors.  The enthusiasm and receptiveness to our Regional Center and projects has been great – and unexpected!  We have met with high net worth individuals in Veracruz, Monterrey, Mexico City, Puebla, and Toluca.  Empire State EB-5 is headed back to Mexico the 22^nd of July to the 27^th and will be meeting new investors in Jalisco, San Luis, Leon Guanajuato and Cancun.  We may make a stop in Belize and Chili if we have the time available. Empire State Regional Center has found our hosts to be friendly and inviting, the food was admirable, and the weather was beautiful.  We are looking forward to spending more time in this spectacular country. 

Here are a few snapshots from the past two weeks...

Empire State EB-5 Regional Center has projects ranging from the healthcare to manufacturing to bio-technology industries. Contact us today to gather more information on these exciting new projects.

CONTACT US EMPIRE STATE EB5 REGIONAL CENTER TODAY!

2815 Monroe Avenue, Suite 2100

Rochester, New York 14618

Tel: (866) 763-6515
   EMAIL HERE or WEBSITE HERE

China's economy slows for second straight quarter, testing reforms

[Source: NBCNews]

China's economic growth in the second quarter of the year may not have slowed as much as some had feared, but a large degree of uncertainty about the outlook for the world's second biggest economy remains, strategists say.

Data on Monday showed the Chinese economy grew 7.5 percent year on year in the June quarter, in line with expectations, but down from 7.7 percent in first three months of the year to mark the second straight quarter of slowing growth.

"Who knows if 7.5 percent [growth] is sustainable? It really is a question of watching the data and where it stabilizes is what's important for the market," Simon Warner, head of macro markets at AMP Capital, told CNBC Asia's "Cash Flow."

"We have a real situation in China where nobody really knows where Chinese growth is going to settle down in the coming quarters," he added.

The China gross domestic product (GDP) data bought some relief to markets, which had braced for a weaker-than-forecast number after recent data sparked fears of a sharp slowdown in growth.

Asian stock markets were a touch firmer after the GDP release, while the China-data sensitive Australian dollar hit a session high of about $0.9109

Entire Article here: China's economy slows

Over the Years Wealthy Mexicans Are Increasing Investment in EB-5

 
Over the past few years Mexico and Central American countries have seen wealthy citizens investing in the United States mainly by the means of the USCIS EB-5 Program. Since 2011 to 2012 the number of investor South of the Border have doubled and only to increase with investors in the years to come. Mexican investment in the U.S. grew 11 percent in 2012, reaching $27.9 billion, said the U.S. Embassy in Mexico City. A main reason wealthy Mexicans are leaving (or as they refer to it as an "Exodus") is the increasingly violent acts from the Drug Cartels. With this rising fear of the Drug Cartels, the individuals and families with the means to invest in a EB-5 Regional Center are doing so. 

Empire State EB-5 has established an office and legal representation in Mexico City to support our on going efforts with our EB-5 investors and providing investor projects that are diverse in both industry and project type so we can offer several options (Healthcare, Hospitality, Manufacturing, Agriculture). 

Interests in understanding the current process and procedures in the EB-5 industry and projects available, contact Empire State EB-5 directly.

                                                                      (866) 763-6515

WEBSITE HERE or EMAIL HERE

 

More Chinese immigrants move to developed economies

[By Fu Jing in Brussels ( chinadaily.com.cn)]

The number of Chinese immigrants to developed economies has picked up slightly from 2009, and made China the "leading country of origin" according to a report published on Thursday in Brussels.

But given its 1.4 billion population, the rate is far lower than most other countries in the world. And its ability and insight into attracting expertise has won warm appreciation from the OECD chief.

As the Paris-based Organization for Economic Cooperation and Development released the International Migration Outlook 2013, the organization's secretary- general Angel Gurria praised China for implementing "very smart" measures to attract expertise. 

China's immigration into OECD countries reached 529,000 in 2011.

In 2009 the number declined to 460,000 from 518,000 in 2007. 

Based on 2011 figures, major immigration countries following China are Romania, Poland, India, Mexico, Philippines, United States, Germany, Morocco and the UK, each of which all has immigration of above 100,000.

See complete report: Slight rise in Chinese immigrants to developed economies

Wealthy Mexicans' Investment In The United States Increased in 2012

 
Mexican investment in the U.S. grew 11 percent in 2012, reaching $27.9 billion, the U.S. Embassy in Mexico City. The U.S. issued almost 4,000 investor visas to Mexicans in 2012, with only Japan and Germany exceeding that amount. Mexico and the U.S. have always had strong economic ties, though investment has traditionally flowed North to South, with U.S. companies outsourcing manufacturing operations to Mexico. In a balancing of the scales, Mexican businesses are now expanding north. The U.S. Embassy says that the U.S. is an attractive location for Mexican businesses and private investors.

Complete Forbes article: Wealthy Mexicans' Investment In The United States Sharply Up in 2012

Chinese with high net worth emigrating overseas consider the EB-5 program

A few main reasons for Chinese to consider USCIS EB-5 program:

1. Diversifying investments; with tough governmental restrictions on Chinese real estate market and declining gold price,  many Chinese investors are considering international investment strategies. Investing in foreign real estate, including residential properties, is a top priority approach for many investors.
2. Sending children for a better education; many Chinese teens are coming to private high schools in the US. Currently there are nearly 200,000 Chinese students enrolled in the US schools, colleges and universities.
3. Avoiding potential social and political instabilities; with a new regime in power, many wealthy investors feel more uncertainty and discomfort about which direction China is to be headed. The vast gap between the rich and the poor has further pushed the investors for outbound opportunities.
4. Seeking a better life; with numerous reports on food safety issues, environment pollution problems across China, Chinese investors are simply searching for exit strategies.

Empire State EB-5 Regional Center has projects ranging from the healthcare to manufacturing to bio-technology industries. Contact us today to gather more information on these exciting new projects.

CONTACT EMPIRE STATE EB5 REGIONAL CENTER TODAY!

2815 Monroe Avenue, Suite 2100

Rochester, New York 14618

Tel: (866) 763-6515

                                                     EMAIL HERE or WEBSITE HERE

China Mainland to top Japan in millionaire stakes

(Source: China Daily, by Michael Barris)  

The Chinese mainland is poised to overtake Japan this year as the economy with the world's second-largest number of dollar millionaire households, behind the United States. 

And the Asia-Pacific region will surpass North America in four years as the world's wealthiest region, according to a report by the Boston Consulting Group. 

In its annual study of the world's wealth management industry, the global management consulting firm said worldwide wealth grew faster last year than in the previous two years. 

But it predicts that revenue growth and profits at wealth management firms will fall over the next five years, as the faster creation of wealth in Asia-Pacific and other developing regions poses challenges that will rob firms of the momentum they started to gain in 2012. 

BCG calculates millionaires by their investable assets excluding a primary residence or business. In 2012, the US had the most millionaire households, with 5.9 million, followed by Japan with 1.5 million and the Chinese mainland with 1.3 million. 

Complete report of China Mainland to top Japan in millionaire stakes

USCIS Issues Final EB-5 Policy Memo

[By Jennifer Hermansky on May 31st, 2013/ Greenberg Traurig]

On May 30, 2013, USCIS finally issued the much anticipated Final EB-5 Adjudications Policy Memorandum.  The Final EB-5 Adjudications Policy Memorandum makes significant changes to and provides clarifications for the EB-5 Program.  Here are some of the highlights:

• Less Regional Center Amendments: The new memo states that USCIS does not require formal amendments to regional center designation when an RC changes its industries of focus, its geographic boundaries, its business plans, or its economic methodologies.  Previously, the I-924 listed “acceptable amendments” to include some of these. The memo clarifies the non-mandatory nature of these business changes.
• An RC’s Geographic Area is Determined by Reasonableness:  For the first time, USCIS outlined that determinations on the geographic area of a regional center are based on the RC’s ability to establish by a preponderance of the evidence that the proposed economic activity will promote growth in the proposed area. This means that the RC must show that the proposed area contributes significantly to the supply chain and labor pool of the proposed projects.
• Defines Hypothetical, Actual and Exemplar Projects: The memo states that if a project complies with the requirements of a Matter of Ho business plan, it is an “actual project.” If the project does not comply with Matter of Ho, it is “hypothetical.”  Additionally, an actual project requires more detail than a hypothetical. Finally, the memo defines an “exemplar” as an actual I-526 petition for a project that USCIS will review for EB-5 compliance, including all transactional documents (such as the offering materials).  This is important because if USCIS approves an “actual project,” USCIS will give deference to the later filed I-526s.  Hypothetical projects are not accorded deference at the I-526 stage.
• We decided that already! Deference to Prior Decisions: Deference to already adjudicated matters is one of the most significant changes contained within the memo. For example, if USCIS approves an I-924’s Matter of Ho compliant business plan, it will give deference to this at the later I-526 stage.  I-924 approval notices should state whether a project has been approved as an exemplar or actual project, thereby being accorded deference in future adjudications.
• Approved the Use of Escrow Accounts: USCIS explicitly approved investor’s use of escrow accounts as long as release of funds is immediate and irrevocable upon approval of the Form I-526 and acquisition of an immigrant visa or approval of Form 1-485 (adjustment of status).
• Bridge financing Permitted If You Just Can’t Wait: If a developer uses bridge financing prior to receipt of the EB-5 capital, this will not affect the job creation calculation      whether or not said financing was contemplated before the EB5 financing.  However, it is always a best practice to have contemporaneous evidence of the intent to use EB-5 capital.
• USCIS Defers to State Adjudications of TEAs: USCIS will review state determinations of TEAs to see whether they used reasonable methodologies, but will otherwise defer to state determinations.
• Eventual Acquisition of an Asset Does Not Count as “At Risk” Investment: If the investor is individually guaranteed the right to eventual ownership or use of a particular asset in consideration of the capital contribution, then the expected present value of the guaranteed ownership or use does not count toward total amount of the investor’s capital contribution in determining the amount of money truly at risk.
• Restructure or Reorganization Means (probably) a Total Remodel or Significant Addition: Plans to convert a restaurant into a nightclub or add crop production to a livestock operation would constitute restructuring. This seems to mean USCIS wants a complete remodeling or significant addition to the existing business. “Reasonable time” to Create Jobs at I-829 is Not a Free Pass: Investors need not have created all the jobs at the I-829 stage, but need to be in “substantial compliance” and show that they will create jobs “within a reasonable time.”  This is not an open-ended allowance, but does provide some flexibility. After this time, jobs will not be considered unless there is a force majeure. 
• Material changes at I-829 stage? Don’t Fret: An individual investor can proceed with their Form I-829 petition to remove conditions even if within the time between I-526 approval and submission of the Form I-829 a material change occurred to the business plan.  As long as the investor can show that they satisfy the conditions for removal of conditions, USCIS may still issue an approval.