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EB-5 News Archive for the ‘Uncategorized’ Category
Last week I had the pleasure of being asked to participate as a guest speaker at the IIUSA Conference on the EB5 Visa. I found the conference to be one of the most informative events of the year related to the EB5 program, especially considering it was attended by many of the most influential and informed people within the EB5 industry.
The following day we had the pleasure of attending the quarterly EB5 Stakeholder Engagement at the USCIS Service Center, another colleague of mine recently referred to this event as the “Un-engagement” because of the lack information that was actually shared by USCIS and the indifference they seemed to have toward what many people in the industry feel are very critical and pressing issues.
While many of the 400+ EB5 professionals that attended this meeting were expecting to hear specific answers and direction from the USCIS panelists we unfortunately were treated to a lot of song and dance.
The following are a few points of interest that we had the pleasure of hearing on May 1 at the greatly anticipated EB5 Stakeholders meeting :
■ The panel started discussions with an announcement that they would not allow questions about and would not comment on the “tenant occupancy” issue that is perhaps one of the biggest concerns at the moment in the world of EB5.
■ In the past the USCIS panel would prepare a presentation that would provide statistics and address specific questions presented in advance from various stakeholders. However on this day they not only did not provide full PowerPoint presentation but they did not address any of the stakeholder questions solicited and provided in advance of the meeting. This was surprising because at the beginning of the meeting they announced the panelists had prepared answers to some of the questions that had been submitted.
■ While the panel was made of several Senior Staffer, they said very little and Sasha Haskel (Director of the Service Center) pretty much ran the show.
■ USCIS acknowledged concerns with regard to processing times and stated certain goals they have to improve upon wait times but they really made no specific comments on how the current lengthy processing times would be improved upon and made no effort to streamline the communication process other than to direct all inquiries to be addressed to the “public engagement mailbox”.
■ The USCIS panel acknowledged there was great concern and desire among Stakeholders to improve communication between Adjudicators and Attorneys who represent the Petitioner but they had no specific plan or goals they could provide on how the Service Center planned to improve in this area.
■ USCIS provided the usual EB-5 statistics, and promised that stats will be published consistently in the future.
■ Sasha Haskel suggested that USCIS would issue a new draft of the EB-5 policy memo soon and Stakeholders should expect this to “be released in a few weeks,” and that the USCIS is not currently deferring to the draft memo or implementing the “material change” guidance previously included.
■ Haskel also confirmed that Regional Center applicants who were issued a “tenant occupancy” RFE will be contacted directly by the Service Center with a notice that their deadline for response will be extended. However, there was nothing said to indicate that would be any guidance related to the RFE.
During the meeting many members had the opportunity to ask direct questions to the Panel however very little “engagement” actually occurred. Some of the questions being responded to with vague answers and some even being met with literally no answer at all, just a blank stare and uncomfortable silence. Although I did not hear this myself, one other blogger from the EB5 community has reported that after the moderator had ended the meeting, the live microphone caught a private comment that was interpreted to be Sasha Haskell saying aside: “I think we’re doing fine, I don’t care what they say.”
With an opportunity such as the EB5 Program having such incredible potential of making a real impact on the economy as a whole and the ability to make a real difference to improve unemployment in so many areas of the country that need it the most, I am sad with the level of indifference that seems to be evident from the USCIS Service Center. The EB-5 Regional Center Pilot Program has so much promise, and but this meeting clearly pointed out that while there are serious issues at hand, there does not seem to be any clear course of action to correct what so many people feel can be improved with simple common sense and action. Unfortunately many of these issues will simply not just “fade away” by being ignored. With so many professionals in attendance at the previous days IIUSA conference that were sharing ideas and plans for proposals of projects that would create real jobs and significant economic impact, the Stakeholder “engagement” did not seem to bring us any closer to knowing the direction of the USCIS Service Center or if and when there would be any clear direction given to the increasing number of Petitioners who want to participate in this very promising federal immigration program.
Senator Leahy chairs Department of Homeland Security oversight hearing with Secretary Janet Napolitano.
By Renata Castro
The Senate Judiciary Committee held a Department of Homeland Security oversight hearing on April 25th, with Janet Napolitano, Secretary of the Department of Homeland Security.
Senator Patrick Leahy (D-Vt.), Chairman of the Committee, voiced his satisfaction that Secretary Napolitano recommended the continuation of the EB-5 Regional Center Program. The continuation of the EB-5 Regional Center Program was also recommended by the President’s Council on Jobs and Competitiveness.
Senator Leahy stated:
This job-creating, immigration-through-investment visa helps harness our immigration system to strengthen our economy and help our business leaders attract talented people from around the world. I look forward to the reauthorization of this program. Senator Chuck Grassley (R-Iowa) and I have been working together to get this and other expiring visa programs reauthorized in a bipartisan manner. As we move forward, I also hope to continue working with you and with USCIS Director Mayorkas to strengthen and improve the EB-5 program so that it may continue to be a job creator for our communities, and to ensure that the agency has the tools it needs to maintain the highest level of integrity in the program.
Senator Lahey emphasized his engagement in getting the program renewed, alongside Senator Chuck Grassley in a bipartisan effort to continue this successful job creation investment vehicle that has captured hundreds of millions of dollars for the US economy.
Timing is just right for such news, as the EB-5 pilot program is due to sunset on September 30, 2012.
What is the EB-5 Visa Program?
The EB-5 Visa program is an employment-based visa which is intended to promote the flow of assets into the U.S. economy and at the same time to promote the creation of jobs in the United States for legal U.S. residents.
To achieve these goals and so that overseas investors may obtain immigration benefits for having made an investment, the program mandates that the minimum investment a foreign investors must contribute is either USD$1,000,000 for a regular EB-5 Investment Visa or USD$500,000 for an EB-5 Regional Center program. In addition the program mandates that 10 full-time jobs must be created as a result of each investment. The Investor is entitled to a return on their investment and is eligible to sell their interest in the venture after a period of 5 years. Additionally foreign investors and their qualifying family members are offered the prospect (not guarantee) of Lawful Permanent Residence in the United States.
Projects being considered for investment are designed to qualify under requirements in the law that permit reduced investment and that also permit creation of indirect jobs for U.S. Citizens. This approval is not granted to the respective EB-5 project unless the project can prove that they fit within the designated Regional Center guidelines that are established by the United States Citizens and Immigration Service (USCIS).
The Regional Center Pilot Program
The Immigrant Investor Pilot Program (“Pilot Program”) was created by Section 610 of Public Law 102-395 (October 6, 1992). This is different in certain ways from the basic EB-5 investor program. The Pilot Program began in accordance with a Congressional mandate aimed at stimulating economic activity and creating jobs for U.S. workers, while simultaneously affording eligible aliens the opportunity to become lawful permanent residents. Through this innovative program, foreign investors are encouraged to invest funds in an economic unit known as a “Regional Center.”
A Regional Center is defined as any economic unit, public or private, engaged in the promotion of economic growth, improved regional productivity, job creation and increased domestic capital investment that has been designated and approved by the United States Citizenship and Immigration Services (“USCIS”).
A link to the webcast of the oversight hearing can be found here.
By Renata Castro
The United States Embassy has released numbers that show that the interest of Brazilians in entering the US has not only grown exponentially, but also that the US government is welcoming the influx.
The numbers show that 115,269 visas were issued in March 2012, 62% more than in March 2011. Given the explosive demand,
non-immigrant visas such as B1/B2, H, L, O, P, Q, and R will have a fee increase. The average fee increase will be of US$ 30.
Brazilians have long been a fixture in the Florida – Massachusetts – California circuit, but now their economic impact can be felt beyond those borders.
Idea Brazil, a Brazilian company that specializes in marketing services and products of American companies to Brazilian tourists, estimates that the average Brazilian tourist spends US$ 6,000 per visit.
Affluent Brazilians are also heating up the Luxury Real Estate Market, with Manhattan and Downtown Miami being their markets of preference for snatching luxury property at down market prices. As more and more Brazilians visit and create ties to the US, Brazilian families and businessmen/women alike have started to explore their options when it comes to becoming US residents.
Unlike citizens of other treaty countries (A full list can be found at the Department of State’s website), Brazilians do not qualify for E-2 visas. On the same note, the purchase of residential real estate does not allow a foreign investor to adjust status and become a US resident. The best alternative for Brazilians looking to enjoy the benefits derived from being US residents is through an EB-5 investment.
The EB-5 Visa program is an employment-based visa which is intended to promote the flow of assets into the U.S. economy and at the same time to promote the creation of jobs in the United States for legal U.S. residents.
To achieve these goals and so that overseas investors may obtain immigration benefits for having made an investment, the program mandates that the minimum investment a foreign investors must contribute is either USD$1,000,000 for a regular EB-5 Investment Visa or USD$500,000 for an EB-5 Regional Center program. In addition the program mandates that 10 full-time jobs must be created as a result of each investment. The Investor is entitled to a return on their investment and is eligible to sell their interest in the venture after a period of 5 years. Additionally foreign investors and their qualifying family members are offered the prospect (not guarantee) of Lawful Permanent Residence in the United States.
Projects being considered for investments are designed to qualify under requirements in the law that permit reduced investment and that also permit creation of indirect jobs for U.S. Citizens. This approval is not granted to the respective EB-5 project unless the project can prove that they fit within the designated Regional Center guidelines that are established by the United States Citizens and Immigration Service (USCIS).
Exclusive Visas thoroughly researches all Regional Center projects in the United States, and endorses only those projects that meet our rigorous standards. When you hire Exclusive Visas, we hold your hand from the moment you begin considering which Regional Center program to invest in, until the day you receive your permanent green card. You will be assigned a personal concierge to liaise between your Immigration Attorney, and the Regional Center throughout the entire process.
English translation of article in Mexican newspaper, on Thursday, April 5, 2012
negocioselnorte.com
Jueves. 5 de Abril del 2012. negocios@elnorte.com / Tel. 8150 8139 / Editor: Gabriel de la Garza
By Alejandra Buendia
American Regional Centers (as part of the EB-5 pilot program), which allow foreigners to acquire US residency through an investment, has expanded its reach from other sectors to include the energy sector as well.
Due to the impulse in the renewable energy sector in the United States, especially in Border States such as Texas, Arizona and California, the search for investors has intensified, as informed by managers and directors of different Regional Centers.
“I have seen more and more projects in the alternative energy industry offered in Mexico recently, especially in the past two or three months”, said Joe Sloboda, managing partner of Exclusive Visas, a company dedicated to introducing foreign investors to Regional Center projects.
“Of the many calls we receive from Mexican Nationals, who are interested in the EB-5 program, a large number of individuals has questions about energy projects”, added Sloboda.
The EB-5 Program, which has existed since 1991, allows Mexicans to obtain US legal residency for the investors and for their families through an investment of $1 million (or $500.000 in certain areas with higher unemployment) geared towards job creation in the US.
Many of the projects currently being offered are in the construction of electric power plants, hydrocarbon well perforation, pipeline construction and solar, wind and biodiesel. The return on these these projects fluctuates between 5 to 10 percent.
“The interest of promoting energy projects in Texas is due in most part to a high activity in the sector, and that has become more profitable in the recent years because of the improvement in horizontal drilling technology, therefore producing shale gas”, said Francisco Meza, of the regional center Texas Redevelopment Authority.
Traditional projects are having a good acceptance rate in Mexico, said Gabriel Garcia, in charge of the Mexican investors at the USA Now regional center. He said that around 15 Mexicans have invested in the transportation and sale of fuel in the south of Texas.
However, renewable energy projects are still perceived as risky by investors.
“People are not quite sure of the outcome of alternative energy companies and if they will be able to meet the Visa requirement of creating at least 10 jobs during a 2-3 year period and recover their money”, noted Sloboda.
By Renata Castro
There has never been a better time to buy and profit from the distressed U.S. Real Estate market.
An abundance of inventory at low prices, paired with a demand for rental residential units, has left real estate speculators salivating at the opportunity to profit from the demise of the industry.
But the hurdle is no longer to find the right property, but to find the necessary funding.
As traditional lenders tighten their already restrictive lending guidelines, Real Estate developers have been actively seeking relief in the form of EB-5 funded projects. Word on the street is that EB-5 funds are the next best thing to subprime. Not quite.
EB-5 is a pilot program implemented by US government to increase job creation through the injection of foreign funds. In exchange, investors are put on a pathway to US citizenship through US residency anchored by the investment.
A minimum of 10 jobs has to be created by the investment during the investment period, and both the funds and the investor’s residency are at risk for a period of time.
Investors, coming from markets such as China, Russia, Brazil, India and Mexico, to cite a few, tend to favor projects with a real estate element as a way to mitigate the risk.
Here’s the caveat – the purchase of residential real estate in itself does not qualify as an investment that’s EB-5 worthy. Moreover, even if the funds are used to develop large scale residential real estate projects, it becomes evident to the project owner that the number of full-time jobs that must be created in order to satisfy USCIS’ requirements so that all investors can successfully submit and receive approval on their I-526 petitions becomes cost-prohibitive to very livelihood of the project.
Not all is lost. Working with professionals from the beginning stages of a project increases the chances of success when it comes to maximizing the potential of this powerful funding alternative.
Exclusive Visas provides turnkey services to projects looking to capture funds in the EB-5 marketplace. From the Econometrics studies to the development of the business plan, Joe Sloboda and Fred Burgess, alongside a team of experienced professionals, leverage from their experience and successful track record of funded projects across the country to structure offerings seeking EB-5 funds to expand or to start operations.