EB-5 Commentary

EB-5 Regional Center Application Approval Times

Posted by Phil Cohen on Tue, Nov 24, 2015 @ 07:17 AM

One of the most common questions EB-5 professionals are asked from those thinking about starting an EB-5 regional center is, "How long will it take to get approved?"

The answer to this question is multi-layered.  The actual time it takes for USCIS to process an EB-5 regional center application is constantly changing.  Officially, the last-posted processing time on the USCIS website was as follows (I-924 is the official name for an initial regional center application package):

EB-5 Processing Times    Source: USCIS

What people really want to know, however, is how long it takes to get money in the door. There are several things to consider in order to get the real answer here:

  1. Do you have your team together?  This is a critical first step; it is important to understand who you need and how to choose your team.  This step should not be rushed.
  2. Do you have all the answers that your team will need?  Do you know what those things are?  Save yourself a ton of time and expense by finding good resource to help you understand what you'll need to get started.  This information goes beyond a normal start-up's requirements and waiting until you have your (often expensive) team together means that you will quickly come to rely on them for guidance on things that you might have easily discovered on your own at far less expense with a good resource.
  3. Is your deal good or great?  Talk to marketers early on to understand what will make a deal stand out in today's market.  Good deals can sell; great deals will sell faster.
  4. From there the package needs to be assembled and your team of experts need to do their thing.  Depending on your EB-5 regional center's complexity, expect anywhere from 1 to 2 months on average to get your package assembled and ready for submission.  Most experts will tell you that the clients take much longer.
  5. Once your package is submitted you can start marketing.  How will you market to foreign investors?  How big is your raise?  How saleable is your deal? The answers to these questions will have an impact on how quickly you can get the capital you are seeking.
  6. Once you win investors, each investor must submit their own petition to have themselves approved as an EB-5 investor.  This adds several months to the process (for each investor).
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Phil Cohen is the founder and President of Strategic Element, a company that focuses on developing regional centers, EB-5 business plans, economic impact reports, feasibility studies and custom 'direct' EB-5 projects for its clients (www.strategicelementconsulting.com). 

 

Tags: EB-5 center I-924, EB-5 Team, I-526, EB-5 Regional center processing times, I-924, EB-5 Regional Center, job creation

On Using Borrowed Funds to Invest in EB-5 Projects

Posted by Phil Cohen on Mon, Nov 16, 2015 @ 05:59 AM

 

It is important to note that when an EB-5 investor uses borrowed funds, for example, from a home equity loan or from a company equity loan to invest in an EB-5 project, USCIS will likely ask for proof that the EB-5 investor can repay this loan.

For many investors, this may be easily achievable, yet for others it may not be so easy, which could be in part why they needed to borrow the funds in the first place.

An example of when this type of scenario can work occurs when an investor uses a home equity loan of $500,000 to attain the funds needed for the EB-5 investment.  If however, the investor's total debt on the home is, for example, $1 million on a $5 million home (after borrowing against the home to make the EB-5 investment), the investor could easily argue that they could liquidate the home and repay the loan.

It is a great advantage to investors to be able to use borrowed funds in this way, but all parties should be wary of the pitfalls in doing so.  For regional centers, investors' ability to pay back the loan should be vetted before the investor's I-526 is submitted, and assurances in writing should be asked from the investor to demonstrate that the status of their loan or their ability to pay it back will not change any time soon.

 

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Phil Cohen is the founder and President of Strategic Element, a company that focuses on developing regional centers, EB-5 business plans, economic impact reports, feasibility studies and custom 'direct' EB-5 projects for its clients (www.strategicelementconsulting.com). 

 

 

Download Your Free Paper:  9 Things to Know  Before Going Down  The EB-5 Road

Tags: EB5 Regional center, EB-5 investors, I-526, EB-5, EB-5 Regional Center, EB5

A Reminder About Industry and Geographic Restrictions and Amendments

Posted by Phil Cohen on Wed, Nov 11, 2015 @ 01:33 PM

Here is a reminder regarding amendments, which is worth noting...

In its EB-5 Policy Memorandum of May 30, 2013, USCIS put forward an important change to this requirement. Therefore, when an EB-5 regional center wishes to expand its industry codes, it may now do so with an investor's I-526 submission.  As a result, the formal amendment process (and the very significant wait time that it used to imply) is no longer required as a separate action by the regional center.  The result is a considerably higher degree of flexibility afforded to regional centers who may wish to expand their geographic or industry sphere of focus.

There is, however, still value, however, to the formal amendment process.  The main value is that investors can be more certain of the approval of the new areas of focus when a regional center has received approval of a formal amendment in advance of the investor submitting their I-526.

Ultimately, for the regional center, it is a judgment call whereby the 'saleability’ of a deal would need to be traded off against the delays involved in seeking a formal amendment.

USCIS has also provided some indication (although this appears not to be definitive in how it was presented) that a regional center’s geographic area of focus may also be expanded via an investor's I-526 petition.  In order to do so the geographic area must be contiguous with the existing regional center boundaries and would require a justification for expansion to the new boundaries.  Similar to what has been described above for expansion of industries of focus, investors will be taking a risk that the justification provided will be accepted by USCIS.

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Phil Cohen is the founder and President of Strategic Element, a company that focuses on developing regional centers, EB-5 business plans, economic impact reports, feasibility studies and custom 'direct' EB-5 projects for its clients (www.strategicelementconsulting.com). 

 

 

Tags: amendment application, EB5 Regional center, EB-5 explained, I-526, EB-5 Business plan

Heard About Flexible Adjudication to Save Time on EB-5 Projects?

Posted by Phil Cohen on Thu, Nov 05, 2015 @ 02:47 PM

As readers of this blog are likely aware by now, the rules flexible resized 600
and processes involved in the development of an EB-5 regional center application are relatively complex and often subject to interpretation by the lawyers involved and also by the adjudicators. 

As a result, in anything but the most straightforward of cases, an issue often arises around whether the question has been properly answered or whether certain rules apply in particular ways or in particular unusual circumstances.

When facing these kinds of unknowns, developers of EB-5 regional centers and EB-5 projects are often in the position of putting their best foot forward and hoping for the best when it comes to the adjudication of their I-924 application (or the project plan itself).  In these circumstances some project or regional center founders might find themselves in a dilemma in terms of whether to submit their business plans as "hypothetical" or as "actual”/"exemplar" plans.  The reason for the dilemma is that a hypothetical plan requires less detail to be approved but if one can have their plan approved as an exemplar plan then they can benefit from deference to this approval when their investors submit their I-526 petitions.

When unsure, there is the possibility of trying to get the maximum benefit of an exemplar approval without losing time should USCIS determine that there is insufficient information to approve the plan as an actual/exemplar.  The way to go about this is to make a written request when the project is being submitted that the plan be adjudicated as an actual/exemplar, but if this is not possible to adjudicate the plan as a hypothetical.

In most cases, this will not hold up the process and allow the entrepreneur to move ahead with the project as quickly as possible should they not be able to get actual/exemplar approval right away.  Saving the step of a re-submission can also save some of the costs involved in doing so.

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Phil Cohen is the founder and President of Strategic Element, a company that focuses on developing regional centers, EB-5 business plans, economic impact reports, feasibility studies and custom 'direct' EB-5 projects for its clients (www.strategicelementconsulting.com). 

 

 

Download Your Free Paper:  9 Things to Know  Before Going Down  The EB-5 Road

Tags: EB-5 center I-924, EB5 Regional center, EB-5 Project, EB-5 explained, EB-5 investors, I-526, applications, EB-5 regional centers, I-924, EB-5, EB-5 Regional Center

Are Jobs Created by Tenants Eligible for EB-5 Job Creation?

Posted by Phil Cohen on Tue, Oct 06, 2015 @ 02:48 PM

Tenant occupancy job creation in an EB-5 business plan

I am often asked about whether an EB-5 project can count jobs that are created by tenants of a particular development.  For example, if someone is developing an EB-5 project or business plan to build a shopping mall and each individual shop is leased out to third parties who will operate their own retail businesses, can all the jobs created by the tenants be counted towards qualifying EB-5 job creation?

The short answer to this question is yes, it is possible, however, where this was once an easier task to accomplish, USCIS has since issued guidance that must be adhered to in order to qualify these positions.

The following is the guidance language issued by USCIS on the matter, however, as is often the case there is a question of interpretation on several points.  We have added our own comments to the text (in bold) but please recall that we are not lawyers and our interpretations are based solely on the language we see.  Many of these will likely require change as adjudications clarify the policy.

From USCIS December 20th, 2012

"December 20, 2012 GM-602-0001
Guidance Memorandum

SUBJECT: Operational Guidance for EB-5 Cases Involving Tenant-Occupancy


Purpose

This guidance memorandum (GM) is intended to facilitate adjudication of cases involving issues related to the "tenant-occupancy" methodology for establishing job creation in EB-5 cases. The guidance has been formulated following careful internal deliberation, consultation with sister government agencies, and review of responses to requests for evidence (RFEs) issued in February 2012 to a number of outstanding Regional Center applicants who relied on the tenant-occupancy methodology. This guidance will be applied to pending cases and cases filed on or after the date of this guidance that rely on the tenant-occupancy methodology. This guidance does not rescind or supersede other EB-5 guidance.

Scope

Unless specifically exempted herein, this GM applies to and binds all U.S. Citizenship and Immigration Services (USCIS) employees.

Background

Among the issues raised in the February 2012 RFEs, USCIS sought evidence that the projected jobs attributable to prospective tenants (which would occupy the commercial space created by the EB-5 capital) would represent newly created jobs, and not jobs that the tenant had merely relocated from another location. This determination is necessary to assess whether there is a reasonable causal link between the EB-5 enterprise and the job creation that would allow for the attribution of the tenant jobs to the EB-5 enterprise. These RFEs suggested the types of evidence applicants could submit to make this showing.

Implementation

Prior to issuing the February 2012 RFEs, USCIS determined that the tenant-occupancy methodology can satisfy the EB-5 program requirement of presenting a "reasonable methodology" that is "supported by economically or statistically valid forecasting tools," if the applicant presents in "verifiable detail" information sufficient to establish by a preponderance of the evidence that the tenant jobs have resulted from the EB-5 enterprise (i.e., that the creation of tenant jobs were facilitated by the EB-5 enterprise, for example through a showing of constraint on the supply of appropriate commercial space or of excess demand for such space)."

Our interpretation: have to show excess demand or constraints on supply

"In regional center cases that rely on tenant occupancy models, as in any other regional center
cases, USCIS requires evidence that the claimed jobs result, directly or indirectly, from the
economic activity of the EB-5 commercial enterprise. Jobs that are merely re-located rather than created do not count. With respect to indirect job creation, the task for the applicants and
petitioners is to project the number of newly created jobs that would not have been created but for the economic activity of the EB-5 commercial enterprise. In making that projection, they are to use economically and statistically valid forecasting tools."

Our comment: This can be done by an economist, above and beyond the normal economic impact report

"Whether an applicant or petitioner has demonstrated that an EB-5 enterprise caused the creation of indirect tenant jobs will require determinations on a case-by-case basis and will generally require an evaluation of the verifiable detail provided and the overall reasonableness of the methodology as presented. To claim credit for tenant jobs, applicants and petitioners may  present evidence backed by reasonable methods that map a specific amount of direct, imputed, or subsidized investment to such new jobs."

Our Comment: things such as tenant improvements and, rent abatements MAY qualify as a form of investment.

"However, for applicants and petitioners that instead seek to utilize a facilitation-based approach, USCIS will not require an equity or direct financial connection between the EB-5 capital investment and the employees of prospective tenants."

Our interpretation: if we are facilitating the development of a new business (e.g. setting up a building geared to restaurants with a kitchen, etc.), then USCIS does not need to see an overt nexus between money and jobs.

"Rather, facilitation-based tenant job credit will depend on the extent to which applicants or petitioners can demonstrate that the economic benefits provided by a specific space project will remove a significant market-based constraint. One way applicants and petitioners can make this showing is to indicate how a specific space project will correct market imperfections and generate net new labor demand and income that will result in a specified prospective number of tenant jobs that will locate in that space.

Our Interpretation: creating new demand for business by creating that business in the first place, will in effect create new job demand.

Continuing below: investing in a specific market category in a high unemployment area the project need only show that they are filling an 'investment void' to generate new demand.

"In high unemployment areas in which new projects are not likely to significantly displace other income or labor, applicants and petitioners should generally indicate how a specific project will fill an existing investment void in that area to generate new demand for the tenant business. Prospective tenant jobs demonstrated by reasonable methods and supported by verifiable evidence pursuant to the above approaches may be used as direct inputs into appropriate regional growth models to generate the number of indirect and induced jobs that result from the credited tenant jobs."

"Where applications for regional centers are approved based on their use of tenant-occupancy
projections, the approval notices should contain appropriate language regarding the assumptions underlying the approval, which if not borne out may impact related adjudications at the I-526 or I-829 stages. 1  For example, a Form I-924 with I-526 exemplar may be approved where no specific tenant has been identified to occupy space but where the applicant or petitioner reasonably projects that a restaurant will eventually lease the premises.2  If, after approval of the I-924, the space is leased to a different type of tenant (i.e., a type of restaurant that yields different expected employment or a non-restaurant), or fails to achieve previously projected occupancy rates, such a change alone will not generally constitute a material change that triggers the elimination of deference in an actual Form I-526 or negates any possibility of individual investors removing their conditions at the Form I-829 stage."

Our Interpretation: an I-526 exemplar based on tenant occupancy may be approved based on the projection that a certain type of tenant will lease the space. 

"3  However, while such modified tenancy arrangement(s) may be permissible under EB-5 program rules, they could nevertheless impact the project’s ultimate job creation numbers. Therefore, the approval notice should caution that the approved job creation estimates are based on a restaurant occupying that space, and that if no tenant or a different type of tenant eventually occupies the space, the economic impact analysis and ultimate job creation numbers will be revisited in future adjudications that relate to that project.

USCIS will issue separate guidance on crediting jobs in a situation where more than one EB-5 entity may be seeking credit for the identical job position. In the interim, where only one case filed with USCIS has sought credit for a specific job position, that case should be credited with the job, provided that all program requirements have been satisfied.

Adjudication of cases involving tenant-occupancy should proceed based on these principles.

Use
This GM is intended solely for the guidance of USCIS personnel in the performance of their official duties. It is not intended to, does not, and may not be relied upon to create any right or benefit, substantive or procedural, enforceable at law or by any individual or other party in
removal proceedings, in litigation with the United States, or in any other form or manner."

 

Final Word

Ultimately, the rules set some guidelines but we have seen considerable push back from USCIS in terms of how these guidelines have been interpreted in some cases.  Those wishing to include tenant occupancy job creation in their EB-5 business plans, should try to work with counsel who is experienced in the area and in particular who has been able to study some related RFEs.  Because of the pushback we have seen on the issue, we tell our clients to carefully consider how important it might be for them to be able to count tenant occupancy jobs, and that if they want to pursue this course, they should be prepared to jump through some hoops.

From a marketing perspective, due to the likelihood of a project getting RFEs in relation to tenant occupancy job claims, one should assume that the investor and agency community might be less enamored by a business plan showing tenant occupancy jobs, especially if it has not yet been approved by USCIS.

 

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Phil Cohen is the founder and President of Strategic Element, a company that focuses on developing regional centers, EB-5 business plans, economic impact reports, feasibility studies and custom 'direct' EB-5 projects for its clients (www.strategicelementconsulting.com). 

 

 

Download Your Free Paper:  9 Things to Know  Before Going Down  The EB-5 Road

 

Tags: EB-5 center I-924, EB5 Regional center, EB-5 Project, EB-5 investors, I-526, tenant occupancy, EB-5 regional centers, EB-5, EB-5 Regional Center, job creation

See our Latest Article in EB5Investors Magazine

Posted by Phil Cohen on Mon, Aug 10, 2015 @ 07:10 AM

See our latest EB-5 article in EB5Investors magazine.  The article discusses tips on avoiding and dealing with RFEs: www.eb5investors.com.

 

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Phil Cohen is the founder and President of Strategic Element, a company that focuses on developing regional centers, EB-5 business plans, economic impact reports, feasibility studies and custom 'direct' EB-5 projects for its clients (www.strategicelementconsulting.com). 

Tags: amendment application, EB-5 investors, I-526, applications, I-924, EB-5, EB-5 Business plan

Pros & Cons of Different EB-5 Business Plan Types

Posted by Phil Cohen on Mon, Jul 20, 2015 @ 11:42 AM

For those considering making an EB-5 investment, you will no doubt hear of three different kinds of EB-5 business plans: hypothetical, actual and exemplar. Each kind of business plan has different benefits and drawbacks from the investor's perspective. This article will provide a brief explanation of each type of business plan and what it means to investors.

Any kind of EB-5 business plan could be submitted alongside a regional center application, while a so-called 'direct' application requires the use of an exemplar EB-5 business plan.

Hypothetical

A hypothetical EB-5 business plan is a plan that provides an approximate overview of the project in question. The details required for a hypothetical plan are usually very high level and non-specific. Details in a hypothetical plan can include economic model inputs, feasibility study or information and general proposals and predictions. The benefit of using a hypothetical plan is that it allows the project owners to move more quickly in terms of getting their project financed, which adds to overall project stability. On the downside, however, investors should be aware that when a hypothetical plan is used, a more formal or exemplar plan would need to be submitted with the project's first investor (I-526) application. From the investor perspective, this means that the business plan is effectively being reviewed and approved by USCIS for the first time with the first investor's I-526. If an investor is among the first to apply for an I-526 under a given project which uses in an exemplar plan, the project would effectively be reviewed for the first time by USCIS at that time. Subsequent investors in a given project would likely benefit from USCIS giving deference to the project approval based on the first investor's approval.

Actual

An actual EB-5 business plan is a more or less complete plan although it may be missing some critical pieces such as offering documents. The pros and cons of an actual plan from the investor perspective are similar to those of a hypothetical plan, although presumably USCIS will review the information that is in front of them with regard to the plan itself. Although the project would not benefit from a formal USCIS approval, project developers would benefit from having feedback from USCIS on what was submitted. In effect, this means that the risk to the investor of the project itself not being approved at the I-526 stage is smaller than in the case of a hypothetical plan.

Exemplar

An exemplar plan is a complete plan, which includes offering documents, transactional documents and evidence that the project is shovel ready (i.e. ready to start right away). When USCIS accepts an exemplar plan, it is very unlikely that the plan itself would be challenged at the I-526 stage. This kind of approval provides investors with the least overall risk of USCIS refusing the project part of their application.

Does That Mean Exemplar Plans Are Best?

Not necessarily. As a general rule, investors may prefer the security that comes from an exemplar plan being used, however, it is worth noting that the team behind the project, experience with EB-5 and the team that does due diligence on the project can provide significant added value in terms of mitigating the risk or ensuring that the deal in question is a good one. If an investor's application is not accepted at the I-526 stage due to project deficiencies, with a good team this only means that there may be some delay in processing the I-526.

It is also worth noting that proposed changes to the EB-5 program (not yet approved), would not allow for the marketing of projects to investors without approval of an exemplar business plan, which is a departure from current rules, which allow for marketing once a hypothetical plan is filed.

The best advice for investors is to look for a quality project first and to ensure that whoever is representing the project is experienced in EB-5 and has done a significant amount of due diligence. Given the sea of choices in EB-5 today, investors should consider the quality as the top priority and worry less about delays, which can be common regardless of the kind of business plan being used.

 

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Phil Cohen is the founder and President of Strategic Element, a company that focuses on developing regional centers, EB-5 business plans, economic impact reports, feasibility studies and custom 'direct' EB-5 projects for its clients (www.strategicelementconsulting.com). 

 

Tags: EB-5 Team, Chinese Investors, EB-5 Project, EB-5 investors, I-526, USCIS, EB-5, EB-5 Regional Center

Many Flavors of Escrow for EB-5 Regional Centers (Updated)

Posted by Phil Cohen on Fri, Jun 19, 2015 @ 07:38 AM

As the EB-5 space continues to grow and mature, so do many aspects of putting aescrow eb5 regional center regional center together continue to change.

Escrow and EB-5

For a time, most all regional center deals involved an element of escrow for the investors.  In this case, escrow meant that the EB-5 investor commits to the investment in writing (subject to certain conditions, including approval of their I-526 petition) and while their I-526 was being reviewed, their investment sat in trust with an escrow company, who would release the funds to the project upon the investor's I-526 approval (or otherwise back to the investor, subject to certain conditions, if the approval was not attained).

Changes Afoot

Today, this is starting to change.  Some regional center deals forego escrow altogether, while others still might use escrow more creatively.  On the whole, we recommend to new regional centers to make use of escrow in the traditional sense as outlined above, at least while they establish their reputation and trustworthiness in the market.  The exception to this rule occurs where a regional center or project team can offer investors other reasons to develop a feeling of trust, such as a proven track record of the company and team that is behind the project. On the other hand, it is understood that waiting for I-526 approvals can take so long that it can threaten the viability of a project.

Different Approaches

EB-5 investors are often nervous, particularly around untested EB-5 entities, but if trust is established then some of the other options in escrow can be explored.  Among these options are the use of holdbacks, or the use of reasonable trigger mechanisms.

The holdback approach to escrow means that a certain amount of the funds among a pool of investors can be released to the project at a certain point.  For example, every time the regional center gets commitments from 10 investors it might release half of the funds it takes in to the project, holding back the other half to allow for failed I-526s or other allowable refunds.

The trigger mechanism approach could occur where a regional center, for example, releases escrow funds to a project upon the approval of one (or any reasonable number) of I-526 petitions for a given project, which would indicate that the project portion of the I-526 is being approved by USCIS and that denials, if any, would be due to a deficient investor application.  Others still, might offer to release escrowed funds the moment the I-526 is filed providing there is a legally-binding developer's guarantee in place.

Get Creative

Building trust should always be the first priority of a regional center in terms of how it positions itself to investors, largely conveyed via the EB-5 business plan.  With a good reputation a regional center's long term prospects can be very bright indeed.  As trust is built and earned among the investor community a regional center can start to look to other options in relation to its escrow structure and its deal structure generally, whereby investors might feel comfortable taking on certain risks which will ultimately enable a higher degree of both project and regional center stability.  Like any investor, EB-5 or not, the bottom line is that the more risk an investor has to take the more secure the investor needs to feel about the rest of your project or the companies behind it.

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Phil Cohen is the founder and President of Strategic Element, a company that focuses on developing regional centers, EB-5 business plans, economic impact reports, feasibility studies and custom 'direct' EB-5 projects for its clients (www.strategicelementconsulting.com). 

 

Download Your Free Paper:  9 Things to Know  Before Going Down  The EB-5 Road

Tags: EB-5 center I-924, EB5 Regional center, regional center EB5, escrow, EB-5 investors, I-526, EB-5 Regional center processing times, EB-5, EB-5 Regional Center, EB5

Canadian Immigrant Investors: Thinking About Moving To EB-5?

Posted by Phil Cohen on Mon, Apr 20, 2015 @ 06:58 AM

describe the imageThe Canadian government unveiled its new Federal Investor Program replacing the prior program which was very popular with immigrant investors.  Unfortunately, the government has gone from one extreme to the other, moving from a program that was one of the most secure offerings around to one which is considerably more risky, vague and which will appeal only to a  select few, in this author's opinion.

The EB-5 program is quickly proving itself to be a viable alternative for immigrant investors who have been pushed out of the Canadian Federal Investor Program.  Like the Canadian program, the EB-5 program allows foreign investors the opportunity to get a path to citizenship in the United States based on making a qualifying investment.  EB-5 investments must be made in a qualifying business and must be 'at risk' (although this does not mean necessarily 'risky').

Some key points about the EB-5 program:

  • The investment required is $500,000 as long as the business being invested in is located in what's called a Target Employment Area (most are)
  • The typical investment horizon is five years
    although some opportunities are for six years or seven years
  • The typical return to investors is in the range
    of 1% per year, but this varies widely from project to project

There are many other considerations involved in looking at the program and one should take good advice from legal counsel and/or from business consultants who may be able to help.

The EB-5 program has all kinds of businesses participating, some good and some not so good.  The key to mitigating risk in the program, in my opinion, is to work with a company that carefully selects projects that it represents and does a significant amount of due diligence (i.e. one in a position to know good from bad and one who is in a position to choose the best).  It also helps to see that the company that you work through does not take on more than one or two projects at a time, so that there is no conflict of interest in how it represents projects.

Those interested in taking advantage of the EB-5 program should be aware that the US government has imposed a start date of May 1, 2015 for 'Chinese visa retrogression,' whereby citizens of China may be put on hold while other countries get an opportunity to have access to the visa quota.  If other countries do not fill the quota then the program will be reopened to Chinese citizens. Chinese EB-5 investors can still have their applications processed and approved, but they will not be issued their green cards until retrogression is lifted again at the end of the program year (September 30, 2015).   

For Chinese citizens especially, it is suggested that moving ahead sooner rather than later on making an EB-5 investment will give them good placement in the backlog line, thereby allowing them to avoid what may end up being a multi-year wait, such as the situation was in Canada.  It is expected that there will be an influx of investors from Canada who will no longer be able to apply to the Canadian program.

Still need help figuring it out?  Contact me.

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Phil Cohen is the founder and President of Strategic Element, a company that focuses on developing regional centers, EB-5 business plans, economic impact reports, feasibility studies and custom 'direct' EB-5 projects for its clients (www.strategicelementconsulting.com). 

Tags: Chinese Investors, EB-5 explained, EB-5 investors, I-526, EB5, EB-5; Canadian Immigrant Investor

USCIS: Chinese Visa Retrogression to Start May 1, 2015

Posted by Phil Cohen on Mon, Apr 13, 2015 @ 04:30 PM

Mr. Charles Oppenheim announced today (April 13, 2015) that Chinese visa retrogression will be effective as of May 1, 2015.  As of this date, Chinese nationals who file their I-526 petitions may still be processed, but they will not be able to continue processing for their conditional permanent residence until the retrogression is lifted again at the beginning of the new 'EB-5 Year' on October 1, 2015.

As stated in earlier blogs that we have published, we do not believe that the demand will abate anytime soon from Chinese nationals as a result of retrogression, however, as the lineup and backlog starts to form we encourage those seeking to raise capital via the EB-5 program to start to move at a more rapid pace in developing their business plans and getting their projects approved by USCIS.

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Phil Cohen is the founder and President of Strategic Element, a company that focuses on developing regional centers, EB-5 business plans, economic impact reports, feasibility studies and custom 'direct' EB-5 projects for its clients (www.strategicelementconsulting.com). 

 

Tags: I-526, EB-5