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.

Recently we were contacted by a married couple from Dehli, India who saw an advertisement in a local newspaper that caught their eye for what was promised to be a “fast and easy way to immigrate to the United States”.  Being a bit skeptical they started to do some research online and verify the details for the program promoted in the advertisement.  They were interested in finding out more about this particular EB-5 program but shared concerns that the program was not legitimate. The couple researched the EB-5 Visa program and thought it was a great option for them since they had been pondering the idea of immigrating to the United States for many years but it never seemed possible for them. During their online research they came across the website for Exclusive Visas and read over the information on our site to learn more about the requirements of the EB-5 Regional Center Pilot Program.

As the couple decided to “shop around” to find out who could guide them through the application course. They spoke with various immigration attorneys in the United States and also with other so called EB-5 consulting firms.  They were concerned that so many of the people they spoke to had little real experience with the EB-5 program.  When they finally made contact with an immigration attorney in Philadelphia they were encouraged to also contact the offices of Exclusive Visas for additional guidance and advice on how to properly research the many potential EB-5 projects that are available for them to consider.  

They noted to us that they were typically impressed that Exclusive Visas was Attorney owned and operated and that our staff consisted of former financial professionals, Certified Public Accountants and also several people on staff who had also previously immigrated to the United States.  They also were very happy that in retaining our services Exclusive Visas would be “working for them” and not be swayed by or working for any particular EB-5 Regional Center.  They also noted that they liked the fact that our team “has been involved with so many different Regional Centers and EB-5 Projects over the years” and they felt this gave our staff “a good understanding of what to look for in a good project” so we could provide them with key information on what they should consider when researching a project.  What also made them especially comfortable was how we explained to them the various details of Regional Center projects we had previously consulted and what suggestions we and made to these certain Regional Center Projects on how to improve the offerings to better accommodate the EB5 applicant.  They felt that we provided very transparent advice rather than hiding which EB5 project we might favor, as it became apparent to them that other EB5 consultants seemed to place almost all of their clients into various phases of one particular EB5 Regional Center.  Our clients also appreciated the numerous references we provided them of immigration attorneys and former clients that we were eager to provide them so they could independently determine the quality of service we provide.

After 2 months of preparation and research on various EB-5 projects and assisting them in the proper documentation for the source of their investment funds, they filed their application to USCIS and within just five months, they received their approval notice.  They have recently completed the Consular Interview process back home in India and are preparing to relocate to the United States within a few months as they get their personal effects in order and to prepare their children for the coming school year here in America.

One of the highlights of the IIUSA 2^nd Annual EB-5 International Investment & Economic Development Forum held in Laguna Hills, CA this past weekend was the quarterly EB-5 Stakeholders Meeting hosted by USCIS (United States Citizenship and Immigration Services).  The meeting discussed, among other EB-5 related topics, data related to amount of applications for I-526 (Immigrant Petition by Alien Entrepreneur) and I-829 (Petition by Entrepreneur to Remove Conditions), between fiscal years 2005 and 2012 (2^nd quarter).

China is, without a shadow of a doubt, the leader in EB-5 petitions with USCIS. The Chinese market is one of the most organized and mature EB-5 Markets in the world. That has led to a flood of projects being offered in China to Chinese investors. Vietnam and Taiwan were second and third, subsequently, on the top 5 list. To the audience’s surprise, Iran came in 4^th, and Venezuela, 5^th, rounding up the top 5 countries for EB-5 petitions.

 Attorney Robert Ortiz, of Cuevas, Ortiz and Cubas, P.A., in attendance of the event, was not surprised with Venezuela being placed in the top five. 

When asked about the sudden spike in demand from Venezuelans seeking US residency under the EB-5 program, Attorney Ortiz responded: “Presidential elections will be held in Venezuela and the people of Venezuela do not know what is going to happen, especially with President Chavez’ current health condition.”

Attorney Ortiz also mentioned most of his Venezuelan clients seek US Residency due to the instability in the country. “The main issue is Security.  Most of my clients do not want their children to be raised in the current environment of Venezuela.  Most of my clients do not feel secure in Venezuela and are afraid that something might happen to them or their family”, says Attorney Ortiz.

For a link to the data, click here.

Exclusive Visas will start offering Webinars to businesses looking to attract foreign capital, in an effort to better assist businesses across the US which are looking to learn more about EB-5 and its benefits.

“We felt we’d be furthering the objective of the EB-5 program, which is to promote economic growth and the creation of jobs in the US, by demystifying the process of getting foreign funds through EB-5”, said Joe Sloboda, MBA, one of the managing partners of Exclusive Visas.

The curriculum was designed to take business owners, project managers, finance professionals, and entrepreneurs from the basics of what EB-5 is to the different implications of receiving EB-5 funds such as compliance, legal structure and marketing the investment opportunity to the foreign investors.

Exclusive Visas has been involved in the creation of EB-5 private offerings and direct EB-5 funding opportunities in various industries across the country.  Exclusive Visas’ team of attorneys, economists, finance professionals and project managers possess the combined set of skills and knowledge needed to educate business owners in order to help them seize the opportunity to benefit from this flexible, yet unknown, funding alternative for US businesses.

To learn more about Webinar dates and schedule, click here.

The Senate Judiciary Committee held a Department of Homeland Security oversight hearing on April 25^th, 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.

Globo Notícias América is a newscast in Portuguese broadcast by Globo International, geared towards Brazilians residing in the US.

Renata Castro spoke about the different requirements of EB-5 petitions, and the ways it affects Brazilians looking at EB-5 as a way to become US residents.

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).

WESTON, FL. – Joe Sloboda, Vice President of Project Development for Exclusive Visas, will be one of the panelists at IIUSA’s 2nd Annual EB-5 International Investment & Economic Development Forum in Laguna Hills, California. Sloboda will be speaking on “Investor Profiles: Observations from Abroad”, alongside David Enterline, Immigration attorney with Taipei Commercial Law Firm in Taiwan; John Jiang, Managing Director of MICON International, LLC and Taher Kameli, President of Chicagoland Foreign Investment Group. The conference will take place between April 29 through May 1 2012.

Mr. Sloboda, alongside the other panelists, will be sharing with the audience their impressions of foreign investors’ expectations, misconceptions and beliefs when it comes to EB-5 investments.

Market characteristics of already established EB-5 markets such as Taiwan, China and Vietnam will be explored, as well as challenges and successful strategies previously implemented in emerging markets such as Latin America, and the Middle East.

Timeline expectation for projects in reference to investor recruitment and time to market for projects seeking foreign funds will also be explored