The United States Citizenship and Immigration Service (USCIS) have approved nearly 200 regional centers that can offer programs qualifying for the EB-5 visa.
Choosing between the many programs can be a daunting task with many centers making lavish claims on their suitability.
Given the range of options it is not surprising that sometimes potential applicants attach considerable importance to the history of particular regional centers, with questions such as:-
How long has the center been operating?
What are their track records of approvals / rejections with I-526 and I-829 applications.
Although this information can be useful, it is important to take into account the wider picture when looking at the regional center options.
Simply because a regional center claims a significant number of successful clients is not necessarily a guarantee of current suitability. The American economy is very different now than it was a few years ago and a successful option then may no longer be the best option today.
Some centers also regularly change their programs which make drawing a conclusion on their relative success more difficult, each different project needs to be looked at on its own merits.
Many who are starting the EB-5 process have found it useful to begin researching the EB-5 by reading the only published consumer guide on the EB-5 visa pilot program Green Card via the Red Carpet.
One approach taken by potential applicants trying to differentiate the various Regional Center options is to try to undertake a statistical analysis of each regional center track record.
This approach requires a number of considerations as statistics do not always tell the whole story:-
A well established regional center with a very high number of I-526 approvals, I-829 approvals and a record of returning the capital of earlier clients also has had I-829 rejections and has experienced problems on specific programs. It is important to know what lies behind these issues.
A well established center, again with a high number of I-526 approvals and I-829 approvals has received a declining percentage of the overall EB-5 visa market over the past few years. Its traditional program model has been less favored since the economic and property downturn in the USA and this could impact on the centers exit strategy for return of applicants’ $500,000.
Another well established center lays emphasis in its sales material with its ties to State Government. However, less emphasis is given to explain that the program is a private sector business and the exit strategy for the return of the funds is not tied to the State – in other words if the program hits problems the State is unlikely to step in and refund capital.
A number of regional Centers sell the majority of their places to applicants from China. There have been a number of concerns expressed on selling practices by some agents in China which are worth considering including the fees paid to some Chinese agents. Problems resulting from this may not appear until the I-829 or exit strategy stage.
Many who are starting the EB-5 process have found it useful to begin researching the EB-5 by reading the only published consumer guide on the EB-5 visa pilot program: Green card via the Red Carpet.
The expansion of the EB-5 regional centervisa program to approaching 200 regional centers, some of which seem both unproven and speculative, along with aggressive selling techniques entering the equation, has raised some concern. Certainly the range of projects on offer is now varied both in content and quality and there have been some well publicized failures.
It is particularly worrying, when a regional center identifies supposedly positive features that are aimed to appeal to overseas clients who are often thousands of miles away and are not in a place to judge for themselves, the validity of the information provided.
A number of regional centers have highlighted their positive features such as offering “solid investment opportunities” and “looking out for potential investors’ best interests”. However, certain claims may only give the positive half of the story and not the negative half. We have researched many regional center programs and identified a number of anomalies not always bought to the attention of potential EB-5 visa applicants.
A number of regional centers claim that on their program not a single I-526 petition has been denied to date. While this claim may be true it is only half the story. From the EB-5 clients’ perspective, the removal of conditions after two years, (I-829) and the return of their $500,000 capital may be of equal importance, after all failure to achieve the I-829 can lead to possible deportation from the USA for the whole family.
A majority of early year EB-5 visa clients have been successful in obtaining both their I-526 and I-829 approvals and indeed a number have received their full $500,000 back, for the unfortunate few there have been less satisfactory outcomes.
The clients in one Regional Center program did not receive I-829 approvals as the regional center concerned had switched their funds to a different program. Although the decision behind the switch was to protect the clients’ immigration status, USCIS were not satisfied that the switch achieved compliance with their specific requirements and thus did not approve the I-829 petitions.
There have also been a number of program failures at an earlier stage. One California Regional center had its USCIS approval to operate programs withdrawn following an investigation by USCIS; but not before a number of Chinese investors had funded their $500,000 of capital into the program.
At the time of writing another Regional Center is the subject of concern following work stopping on the construction of a factory, again a number of Chinese EB-5 applicants have already committed funds to the program.
There have also been issues where a center promotes its relative safety given that is apparently State run and therefore subject to State controls. However, the programs themselves and the capital from EB-5 participants are in private sector enterprises which could fail and it does not seem likely that the State, in such circumstances, would reimburse capital in the event of failure.
It is absolutely imperative that before deciding upon a regional center program potential EB-5 visa applicants are given detailed positive and negative information from specialists.
For a detailed discussion on the suitability or otherwise of using the EB-5 visa program please take advantage of a free in-depth EB-5 Visa consultation with the principals of Which EB5 who themselves are first generation immigrants to the U.S.A.
Over the past few years we have had a lot of feedback from many of our previous clients. It’s always great to hear from families who have, in many ways, become like old friends that we hear from over a period of successive years on how their relocation to America has affected their lives.
A number have faced challenges of one sort or another in adjusting to a different lifestyle in America. However, overwhelmingly they have been happy with their choice of the EB-5 visa to obtain permanent residency status and all have been successful in their I-526 applications and where applicable their I-829 applications.
Apart from it being nice to hear from families, who in some cases have become friends, the information passed on by these successful immigrants to the USA can be invaluable to those of you who are now starting the process of selecting a Regional Center program and beginning the EB-5 application process. Some of the problems they have encountered along the way can be avoided by other families who can learn the lessons from these previous applicants.
If you are considering the EB-5visa you may know that the programs for most Regional Centers have a capital requirement of $500,000 if the program is situated in a Targeted Employment Area (TEA).
The length of time that these Centers hold your funds can vary. Currently the shortest specified period is for four years. Many Regional Centers however do not specify a specific period but have very ambiguous exit strategies and indeed we have heard centers say, off the record, that their exit strategy could be thirty years!
You will also incur three other sets of fee over and above your $500,000 capital requirement.
Fees paid to The United States Citizenship and Immigration Service (USCIS) to process your application.
Attorney fees can vary enormously; they are generally in a range of $15,000 to $25,000 but can be as high as $45,000. These fees can vary according to what exactly they include. Some Attorneys have been known to make additional charges during the course of the application process.
A higher fee may not be an indication of experience or success. We are aware of Attorneys who charge at the lower end who have processed many EB-5 applications and have a 100% record of success. We know of others at the higher end of the scale who have very limited EB-5 experience!
The administration fees charged by the Regional centers can also vary enormously but generally fall into a range from $35,000 to $65,000. Again a higher fee is not necessarily indicative of a better program. We are aware of programs at the lower price range with an extensive track record of success at both the I-526 and I-829 stage. We are also aware of Regional Centers charging a much higher fee with a very limited track record.
If you are considering the EB-5 visa as your best method to gain permanent residence in the USA you may need to act in the next three/four months to make certain of obtaining the visa.
Currently applications are taking approximately six months for your initial petition to be processed by USCIS and a further three to four months for either an adjustment of status or consular processing. If you want to be sure you have enough time to go through the process with a margin of safety you probably need to apply before the end of December 2011.
The program has faced closure before but Congress has granted typically last minute extensions. However, this time closure is due in the period of a run up to The Presidential election, this adds some uncertainty to the process.
There has been lots of talk that premium processing would be introduced for the EB-5 visa program which could reduce the processing time down from the current six months to a few weeks. While this is currently under continued discussion it could take many months to implement. Meaning it MAY NOT be available until late into 2012. This would leave many applicants exposed to perhaps not getting their petition adjudicated prior to the expiry of the program.
It is very important for you to carry out full due diligence before committing to a particular Regional Center program. A number of Regional Centers have received Requests for further Evidence (RFE), some have had refusals at the initial (I-526) stage and others, more alarmingly, have had refusals at the removal of conditions (I-829) stage.
If you would like to discuss the implications of this program, or would like impartial information about the various Regional Center programs, our network of consultants and attorney’s can provide a free in-depth personal consultation to you. We currently have over 250 clients and a 100% record success record.
This question is often asked by those pursuing the EB-5visa to permanent residency in the USA; however, it is a question that can have potential and serious dangers attached to it.
For example, let’s say a regional center advertises that it has a particularly high rate of return – consider the following point.
You are presumably applying primarily for a visa that happens to be an investment. If the project fails, or jobs are not created by the time you apply for your removal of conditions after twenty one month’s (known as the I-829 stage), not only do you risk losing some or all of your $500,000 capital, but you and your family could lose your vista status (green cards) and ultimately face deportation.
Therefore, in solely focusing on the highest investment return you may have jeopardized your original purpose of using the EB-5 visa, which presumably is to gain entry, and then retain the right, to remain permanently in the USA.
Most cautious individuals usually focus on;-
• The likelihood of their application being granted (I-526 stage)
• The conditions being removed after two years (I-829 stage)
• The return of their $500,000 within a reasonable period of time.
(Many people do not want to wait longer than four to six years).
The rate of return is seen as a possible bonus, not a key factor.
If you would like more information on your options and a free consultation on the strengths and weaknesses of EB-5 programs contact us via email at info@whicheb5.com or request detailed EB-5 Visa information here.
If you are considering the EB-5 visa as an appropriate method to obtain permanent residency in the USA for you and your family you have probably undertaken some research to find out as much as possible about the process.
As you may have found out, the visa can require you to invest $500,000 in what is termed a regional center. To date there are, in theory, over 150 of these centers which have been authorized by The United States Citizenship and Immigration Service (USCIS) to offer programs that may qualify for the EB-5 visa.
You may have made some enquiries and asked a number of questions such as:
What are the number of applications and the success rate of these centers at the initial approval stage (I-526) and the removal of conditions stage (I-829)?
You may also want to know how firm the exit strategy is, i.e. the return of your $500,000.
There are numerous other questions that need to be asked and the answers carefully evaluated to make certain you are getting a completely truthful response rather than an answer designed to get you to buy-in to a particular project. These questions include the reality or otherwise of the centers targeted employment area (TEA) status.
However, assuming you are using an experienced EB-5 consultant with a 100% track record to provide you with this information, one question it is imperative to ask is *have you actually visited, on a regular basis, the centers you are commenting on?
It is also important to define what a visit is; it should not just involve being entertained by the Regional Center salespeople. It should involve looking at the program in depth and visiting the surrounding areas to obtain an overall impression of the program.
Over several years we have uncovered many issues from the visits we have regularly made to EB-5 Regional Centers. Some of these discoveries have been negative, others positive, but they have all been important issues that those considering the EB-5 program should be aware of.
Choosing an EB-5 visa regional center program requires experienced and impartial advice, you cannot simply rely on the information given by the regional centers or some of the consultants and attorneys who, in reality, are actually working with a particular regional center.
If you would like more information on your options and a free consultation on the strengths and weaknesses of EB-5 programs contact Which EB-5
When your I-526 petition is filed to obtain your conditional Green Card, in addition to the petition itself, there are two specific and important pieces of information that will be included within the application.
The detailed personal and investment funds documentation that you will have submitted to your Attorney.
Full documentation of the regional center you selected and their program. Your choice of regional center program will play an extremely important role in your application.
That is why it is vitally important that you chose your regional center carefully. It is critical to take a careful look at the histories and track records of the regional centers.
Have they been realistic in their aims and objectives?
How much do they really care about you and your family as immigrants to the USA or is it all about their own profits?
Do they not only have a good idea for the project but the experience to make it happen successfully?
What qualities make for the most appropriate regional center program options for your particular requirements?
The EB-5 visa requires a $500,000 investment in a United States Citizenship and Immigration center (USCIS) Regional Center Program. The track record of these programs varies considerably and investment terms can be as little as four years. It is vital you obtain independent information from experienced advisers prior to making a decision on Regional Center programs.
If you would like more information on these visa options and a free consultation contact Chase Brodsky at Which EB5 who will be happy to set up a free personal consultation for you with one of our senior partners.
If you are considering investing $500,000 of your hard earned money in one of the many regional center programs you would certainly hope that the centers would be able to tell you what will happen to your investment if you are unsuccessful in obtaining your visa, or indeed are there contingency plans in place if the program invested in runs into problems.
Unfortunately, many EB-5 investors have failed to consider these questions as they have been dealing with advisers andor regional centers more focused on making their commission and selling their product rather than going into the all important small print and background details.
There are many questions that need answering such as:-
Will your investment be escrowed prior to your application be granted, if not what are the safeguards?
What happens if you’re I-526 application is denied? Not all regional centers will refund your administration fee or indeed your investment in this scenario.
What happens if a program fails to find the required number of investors?
USCIS requires your $500,000 to be at risk; however some regional centers have said the investment can be guaranteed?What is happening here and how much risk is necessary?
What happens if you believe your funds have been placed into escrow; however they are withdrawn and used for other purpose? A court case regarding such a scenario is due to be heard in the next few months (such a situation should be avoidable).
What are the issues to be aware of in relation to the exit strategies (return of your investment) between different programs? Currently these strategies range from a specific four year term to ambiguous references to thirty years. However all too often this is not sufficiently spelt out to the EB-5 applicant.
These are questions that do need answering. Although the vast majority of EB-5 applications have been successful there have been a few examples of investments not being returned immediately a center program has been withdrawn or failed. It is important that you are made aware of these.
There are not necessarily yes or no answers to all of these questions. The role of a truly independent and properly experienced adviser can be very important to guide you through all these and indeed many other points.
The EB-5 visa requires a $500,000 investment in a United States Citizenship and Immigration center (USCIS) Regional Center Programs. The track record of these programs varies considerably and investment terms can be as little as four years. It is vital you obtain independent information from experienced advisors prior to making a decision on Regional Center programs.
WhichEB5.com, its owners and associates, do not function as attorneys or legal counsel and do not attempt to interpret immigration law and do not provide or offer legal advice or legal services or investment advice. Anyone considering an Investment based Visa should seek independent professional advice. The information on this site is intended to be general on the subject of the EB5 investment visa green card program and should not be relied upon for any specific situation. Any reference to designated regional centers on this website is posted as reference material only. For legal advice, please contact one of our attorneys. Prior results do not guarantee a similar outcome. Results depend upon a variety of factors unique to each person. Which EB5 is a service of Ireeco LLC 1515 N.Federal Hwy. Suite 300 Boca Raton Florida 33432 USA Telephone: +1-561-771-1330.
