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  

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

 

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.

USCIS ELIS and the EB-5 Immigrant Investor Program Invitation - May 23, 2013

(Source: USCIS)  U.S. Citizenship and Immigration Services (USCIS) invites you to participate in a conversation regarding USCIS ELIS and the EB-5 Immigrant Investor Program on Thursday, May 23, 2013, from 12:30 p.m. to 2 p.m. (Eastern).  Form I-526, Immigrant Petition by Alien Entrepreneur, will be the first of the EB-5 forms available for e-filing in USCIS Electronic Immigration System (ELIS). At the March 28th stakeholder teleconference, we heard concerns about multiple investors submitting the same documentation with the Form I-526. To address this concern, we plan to add a “document library” to USCIS ELIS later in the year. The document library will allow Form I-526 petitioners to share documents related to a new commercial enterprise that were previously submitted with an approved I-924, Application for Regional Center, rather than submitting these same documents with the Form I-526. During this engagement, USCIS officials will give an overview of the concept for the document library and solicit feedback regarding managing access to the document library; uploading and storing documents; and Regional Center and Investor expectations.  To Participate in the Session: You may attend this engagement either in person or by teleconference. If you wish to attend in person, attendance is limited to the first 25 people who register. Those attending via phone will be in listen-only mode.  To Join the Session in Person: If you wish to attend in person, please email Public.Engagement@uscis.dhs.gov no later than May 22, 2013. Please include your full name and the organization you represent, if any, in the body of the email and reference “ELIS EB-5” in the subject line. Also, be sure to bring government-issued photo identification and plan to arrive at least 15 minutes early to complete the security process.  To Join the Session by Phone: If you wish to attend by phone, please visit our registration page to register for this engagement. All registrations must be received no later than May 22, 2013. Be sure to complete and update your subscriber preferences by answering all questions on the “Event Registration” tab. Once your registration is processed, we will confirm your attendance in person or by telephone. If you have any questions regarding the registration process or if you have not received a confirmation email within 2 business days, please contact the Public Engagement Division at Public.Engagement@uscis.dhs.gov. On the day of the session, please use the information below to join the teleconference. We recommend that you call in 10 to 15 minutes before the start time.  Toll-Free Call-in Number: 1-800-857-0174      Passcode: ELIS

Top Five EB-5 Industry Sectors in Chinese Market

[Source: EB5NewsBlog]

There are various EB-5 projects available to Chinese investors this year, they range from casino hotels, mixed-use developments, charter schools, dental clinics to high end apartments. However, considering project's marketability and popularity, the following categories are getting attentions from Chinese investors:

1) Large full service hotels with well-known or international brands;
2) Large scale mixed-use real estate development projects in large metropolitan areas;
3) Direct EB-5 projects with top brand franchises;
4) Assisted living and memory care facilities; and
5) High end apartment development projects in large metropolitan areas

For more information on the USCIS EB-5 Immigration Investor program and investment options,

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

Foreign Buyers Show No Signs of Slowing

 [Source: By Jennifer LeClaire | Miami]

 There’s no slow down in the influx of foreign buyers in the commercial real estate arena. In fact, foreign investment in the U.S. factored as the third largest reason why confidence levels are increasing in 2013, according to Akerman Senterfitt.

The firm released its fourth annual survey after its U.S. Real Estate Summit. The survey found that 31% of commercial real estate executives believe foreign investors will fund a significant portion of commercial real estate debt and equity in 2013. And 62% believe that the U.S. will see the most Latin American real estate investment from Brazil. Venezuelan investors are expected to be the second most active, at 28%.

Meanwhile, 60% of percent of industry executives believe that foreign investors will contribute largely to the development of multifamily homes. They also predict that U.S. hospitality (30%) and retail (29%) will be among the top active sectors for foreign investment.

Foreign Buyers Show No Signs of Slowing

For more information on the USCIS EB-5 Immigration Investor program and investment options,

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

 

 

Key EB-5 Issues Contained in the Senate Comprehensive Immigration Bill Introduced on April 17, 2013

[Source: Laura Reiff and Kate Kalmykov, www.eb5investors.com]

The key EB-5 provisions in the bill include:

-Making permanent the EB-5 Regional Center program.  Introduced in 1992 as a “pilot” program, it has continually been reauthorized by Congress and most recently it was extended through September 30, 2015. 

-Recapture of unused immigrant visa numbers from prior fiscal years. 

-Elimination of per country quotas for employment based visa numbers, this would have 
significant implications for China which is predicted to reach its quota in fiscal year 2014.

-Exemption from the employment based immigrant visa numbers for spouses and children of principal applicants, this means that visa numbers which are currently capped at 10,000 would be allocated solely to principal investors.

-Additional immigrant visas numbers for the EB-5 program as a whole.

Full "Gang of Eight" Legislation Immigration Reform 

Funding Hotel Development Projects with EB-5 Capital

[Source: ILW.com]

When the financial crisis made it more difficult to acquire financing through traditional venues, hotel developers started turning to the Federal  USCIS EB-5 program for sources of capital. Since 2008, developers for hotel chains such as Hilton Worldwide, Hyatt Hotels, and Starwood Hotels & Resorts Worldwide, have taken advantage of the influx of foreign funds made available through the EB-5 program. 

There are two ways for a foreign entrepreneur to obtain an EB-5 investment visa: investing $1 million into a new commercial enterprise to be run directly by the foreign national in the U.S., or to invest into a “regional center.” The latter is an economic unit that is privately owned or sponsored by the government, and will manage the investment, assisting the investor in complying with U.S. Citizenship and Immigration Services (USCIS) requirements—including job creation.  Since most regional centers are located in “Targeted Employment Areas,” they usually qualify for the lower investment amount of $500,000, another reason that they are attractive to the EB-5 investor. Regional Centers also have a less stringent job creation requirement that allows for indirect job creation. 

Since hotels create both, direct jobs (managers and house keeping for example) and indirect jobs (suppliers of towels and soaps), they are a good fit for foreign investors whose permanent resident status is dependent on meeting the USCIS requirements. Pairing with a regional center also benefits the hotel developers since they assist with business plans and help to attract foreign investors. 

<<<READ FULL ARTICLE HERE>>> 

Hotel Developers or Project Developers contact us directly with interest or more information to how EB-5 financing can be a part of you next venture.

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

More than a Green Card for Sale, the EB-5 Program is Good for America!

(Author: K. Lara Baharlo, Esq., Of Counsel, Wolfsdorf Immigration Law Group, Original article HERE) 

In 1990 Congress created the employment-based fifth preference visa category (EB-5) category for foreigners seeking to invest in a business that will benefit the US economy and create or preserve at least 10 full-time jobs for qualified US workers. The amount required to invest is $1 million or $500,000 if the investment is made in a high unemployment or rural area.

Some portray the typical EB-5 investor as an ultra-rich Chinese businessman in the market for a prestigious US green card. One restrictionist group describes EB-5 as a “tacky, troubled program that doesn’t do much for economic development.” Others say the EB-5 program “let[s] the guys in with the money and leave[s] the best and brightest waiting in line.” Meanwhile, participants in the program have their own criticisms, alleging that US Citizenship and Immigration Services (USCIS) is hostile toward EB-5 because it is viewed as a “green card for sale” program that denigrates the US immigration system, and is essentially bad for America.

A fundamental tenet of the EB-5 program is job creation, which is often minimized by program critics. There are economic citizenship programs available in some countries through which an individual can buy a passport for a price. However, the EB-5 program requires much more in that the investment required to put one on the path to permanent residency must, amongst other things, create jobs and be at risk. As such, the “green card for sale” concept is flawed and oversimplifies the EB-5 process.

According to statistics published by IIUSA, the industry trade association for the EB-5 Regional Center Program, almost 100,000 jobs have been created for US workers through the EB-5 program, with nearly $5 billion in capital infused into job creating enterprises in the United States since 2005. These figures should be viewed against an increasingly common backdrop of outsourcing and offshore back-office operations. Should we not welcome a program that creates US jobs and infuses a lagging economy with much needed capital? Already, the US must compete with investor programs that are more attractive due to better administration and less stringent requirements. Although some of these programs are more expensive, they can offer passive investment opportunities and shorter processing times with a higher degree of certainty that the investor will achieve his or her goal of residency.

Yes, the EB-5 program has endured fraud and abuse, but scams and deception are not unique to EB-5. Yes, some Regional Centers have failed to deliver on their promises, and investors and projects have suffered. However, the need for weeding out bad actors must be balanced by the need to provide a predictable and stable program for those with legitimate interests so that the United States can continue reaping the significant benefits of attracting foreign investors, particularly during this time of economic struggle and uncertainty.

America is no longer the overwhelmingly dominant global superpower, and cultural arrogance is not a platform from which to operate a congressionally mandated program. However, the United States is still considered the “land of opportunity” throughout the world and can provide excellent educational and quality of life options for high net worth individuals and their families. Although painful to admit, the US cannot afford to deter the billions in capital and hundreds of thousands of jobs that result from EB-5 investment.

Now is the time for the United States to encourage entrepreneurs, capital inflow and job creation. The EB-5 program is smart business, and the United States should be a world leader in attracting immigrant entrepreneurs who are ready and willing to take on the challenge of making it as investors and job creators in America.
 (Ms. Baharlo can be contacted at lbaharlo@wolfsdorf.com; Original article HERE)

EB-5 Immigration Investor Program Visa Details

[Source: State Department/USCIS/Washington Post]

The visual graph represents the total amount of EB-5 visas that have been issued since the inception of the the program back in 1992. The United States has issued more than 29,000+  EB-5 visas which has created over 50,000+ new US jobs and generated $6.8 billion in investment through the EB-5 program to date. From 2008 to 2013 (current) more than 70% of the issued visas were generated during this time frame. The year 2012 was the most productive year of the EB-5 program since 1992 and 2013 looks out grow the previous year visas.

For more information on the USCIS EB-5 Immigration Investor program, investment options, or basic program knowledge:

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

The EB-5 American Dream

[Source: State Department/Wall Street Journal]

The surge for visas that were issued in the past 5 year through the USCIS EB-5 program are represented in the graph above. South Korea was the majority of visas issued back in 2008, but since that time China has made an extreme jump to the top representing 4/5 of the programs issued EB-5 visas. 

For more information on the USCIS EB-5 Immigration Investor program and investment options,

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

 

 

EB-5 Stakeholder Meeting with USCIS and SEC - April 3, 2013

[Source: USCIS]


Dear Stakeholder,

U.S. Citizenship and Immigration Services (USCIS) and the Securities and Exchange Commission (SEC) invite interested individuals to participate in a stakeholder teleconference on April 3, 2013 at 3 p.m. (Eastern) to discuss the EB-5 Immigrant Investor program. During the engagement, subject matter experts from the SEC will discuss securities law compliance in the context of EB-5 regional centers and investments. Stakeholders will have an opportunity to ask the SEC questions at the end of the teleconference.

To Register:
Please click here to RSVP for this engagement. Be sure to complete and update your subscriber preferences. Once we receive your registration, we will send you a confirmation email with additional details. If you have any questions regarding the registration process, please contact the Public Engagement Division at Public.Engagement@uscis.dhs.gov.

To Join the Session:
On the day of, please use the information below to join the teleconference. We recommend that you call in 15 minutes before its start.

             Call-in Number: 1-888-989-5161               Passcode: EB-5

Please note this call is intended for stakeholders only. Members of the media who have inquiries should contact the USCIS Office of Communications at 202-282-8010. 

We look forward to engaging with you!

Kind regards,
Public Engagement Division
U.S. Citizenship and Immigration Services (USCIS) www.uscis.gov/outreach

EB-5 SEC Engagement Invitation

 

 

USCIS releases draft EB-5 adjudication guidance

[Source: USCIS]

USCIS seeks your input on the draft policy memoranda listed below.

EB-5 Adjudications Policy Memorandum

Draft policy memoranda for comment are posted in the Feedback Opportunities page of uscis.gov, where stakeholders will be able to submit comments.These memos are drafts of proposed or revised guidance to USCIS Field Offices and Service Centers. They are not intended as guidance for the general public, nor are they intended to create binding legal requirements on the public. Until issued in final form, the draft memos do not constitute agency policy in any way or for any purpose.

Comment Process:  Please email all comments to opefeedback@uscis.dhs.gov.   Please include the following to make your comments clear:

• State the title of the relevant memo in the subject line of your message;
• Refer to a specific portion of the memo; 
• Explain the reason for any recommended change; and 
• Include data, information, or authority that supports the recommendation.

You must submit your comments before the closing date noted in the red box at the top of each policy memorandum. USCIS may distribute any comments received (including any personal information and contact information) on its public website or to those who request copies. By providing comments, you consent to their use and consideration by USCIS, and you acknowledge that your comments may become public. USCIS cannot guarantee that it will acknowledge or respond to any comments submitted.

See the Feedback Updates (also linked to the left) for the status of all policy memos and links to published memos.

Background and Additional Legal Information:  Field guidance documents are available for public review on USCIS's website (www.uscis.gov) as part of the Adjudicator's Field Manual (AFM).  In a continued effort to promote transparency and consistency in our operations, USCIS will periodically post policy memos for public comment to assist USCIS in improving immigration services.  USCIS will not post memos containing information that is law enforcement sensitive, confidential or otherwise protected from disclosure under the Freedom of Information Act.  USCIS is not required to solicit public comment on the draft policy memos under the Administrative Procedure Act. This informal comment process does not replace any statutory or other legal requirement for public comment on agency action.

China's billionaires on rise

[Source: WANG ZHUOQIONG - China Daily]

China has had more billionaires created by its stock markets this year than in the United States - 212 compared with 211 - a new survey revealed on Thursday.

According to the latest Hurun Global Rich List 2013, there were 1,453 people in the world with personal wealth of $1 billion or more at the end of January.

Another significant sign of more wealth being created in the East came with figures showing Asia was home to the highest number of billionaires, with 608, followed by 440 from North America and 324 from Europe, said Hurun researchers.

Among individual countries, the US and the Greater China area dominated with 408 and 357 respectively, followed by Russia, Germany and India. 

Between them, the US and China now have half of all billionaires on the planet.
Moscow, with 76 billionaires, is the billionaire capital of the world, followed by New York, Hong Kong, Beijing and London, according to the report. 

More on the Chinese billionaires article HERE

Highlights of Draft USCIS EB-5 Policy Memorandum

[Source: H. Ronald Klasko, Esq.]

USCIS issued its third draft EB-5 policy memorandum on February 14, 2013.  It is open for public comment through April 1, 2013.

While the draft policy memorandum technically does not establish USCIS binding policy, it is a window into its present thinking on various subjects relating to EB-5 adjudications.

This alert will discuss the highlights of the draft policy memorandum in terms of either new policies or clarifications of previously unclear policies.  It is not meant to be a summary of the entire memorandum, most of which merely restates existing law and policy.

It is important to note initially that the memorandum is not an exhaustive memorandum in that it does not cover most aspects of I-924 adjudications, including adjudications of EB-5 projects.  For example, it makes no reference to use of EB-5 money to pay back bridge financing; whether EB-5 loans can be paid back to a new commercial enterprise before conditions are removed; whether direct employees of the job-creating entity (indirect employees of the new commercial enterprise) must be “qualifying employees”; etc... 

<<<READ MORE HERE>>> 

To view the Draft of the USCIS EB-5 Policy Memorandum - READ ORIGINAL MEMO HERE

For more information on the USCIS EB-5 Immigration Investor program and investment options,

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