EB-5 Commentary

EB-5 Processing Times Changing Again

Posted by Phil Cohen on Wed, Jan 28, 2015 @ 07:59 AM

EB-5 Processing timesIt has been just 7 weeks since the December 5th USCIS Stakeholder call and processing times are on the move again.  It is interesting to note that as of January 20th, the posted processing times on the USCIS website have improved (just barely) for I-526 processing, and have increased significantly for both I-924 and I-829 processing.

Here are the latest statistics:

  • I-526 processing: 13.8 months, down from the 14.3 months announced on the call
  • I-829 processing: 10.5 months, up considerably from the 6.8 months announced on the call
  • I-924 processing: 10.3 months, up from the 8.5 months announced on the call

Overall the increase in processing times does not bode well for the industry.  On the bright side, however, those who are already marketing to investors or who are launching ‘direct’ projects are seeing a slight improvement of about 2 weeks in processing time, which is obviously helpful in terms of getting money on the door to move projects forward.

USCIS wants to improve these times and we hope that they will, but for those starting EB-5 projects, they would be well advised to plan for the worst and expect these times to get longer before they start improving.  Bridge financing or later project starts are the best ways to plan for these delays.  And remember that bridge financing is a great thing when it comes to claiming indirect job creation if investment dollars were used as the economic model input.  If that financing is to be replaced by EB-5 money and is already being deployed, it’s like creating jobs before the investors are fully signed up.

We hope to be bringing better news next time around!

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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, EB5 capital, I-829, I-526, USCIS, EB-5 regional centers, I-924, EB-5

Can an EB-5 Loan be Paid Back Early to the New Commercial Enterprise?

Posted by Phil Cohen on Mon, Jan 05, 2015 @ 07:54 AM

On the USCIS |EB-5 Stakeholder's call on December 5th, 2014, a question was asked pertaining to an EB-5 investment made in to a New Commercial Enterprise, which is subsequently loaned to a separate Job Creating Enterprise.  The question asked was whether the investor's EB-5 capital still be considered to be “sustained” if the Job Creating Enterprise successfully creates the jobs and is then sold to another party before the I-829 stage. USCIS did not address this question directly, however, later on, another attendee commented that if the Job Creating Enterprise is sold or liquidated and loaned funds (i.e. EB-5 money) are paid back to the New Commercial Enterprise, those funds should be considered to be “sustained” (in the commentator’s opinion), as long as EB-5 investor redemption has not occurred.  

This is a position that we have heard before from members of the EB-5 community, but we invite readers of this blog to comment on whether they have seen this approach used successfully.  Please let us know if you or anyone you know has had any experience with this method.  

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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: EB5 capital, New Commercial Enterprise, EB-5 Project, I-829, EB-5 investors, applications, USCIS