January 18th, 2012 |
 There have been a number of articles in recent weeks about the job creation aspects of the EB5 visa program.
The visa can require applicants to invest $500,000 through what are termed regional center programs. Over 200 regional centers have been approved by the United States Citizenship and Immigration Service (USCIS).
In straightforward terms, each $500,000 investment requires the creation of ten jobs; these jobs are generally required to be in what is termed a targeted employment area (TEA).
The accusations relate to whether the jobs in certain programs are actually in true targeted employment areas. If they are not, the EB5 visa applicant could potentially find themselves in some difficulty two years later when it comes time to have conditions removed from their green card, I-829 petition time.
It is believed that USCIS are looking into some of the accusations.
The two year date is important as the permanent residency (green card), if approved, is initially granted on a conditional basis for a two-year period. At the end of that period the applicant applies for an I-829 petition and will need to show that the funds were utilized as agreed and ten jobs meeting the required criteria were created.
The issue of failure to create approved jobs has already seen a number of I-829 denials; this could lead to the eventual deportation of the EB5 visa holders.
This issue does illustrate just how important it is to carry out detailed due diligence before choosing which particular regional center program is right for all your needs. It is simply not safe enough to take at face value assurances that may be given by regional centers. It is too late to find out there is a problem after you have invested and obtained your conditional visa.
If you are planning to move to The USA on the EB5 visa, contact Chase Brodsky of WhichEB5 who will be happy to set-up a free consultation for you. Which EB5 have a 100% success record with EB5 visa immigrants.
+Stephen Parnell 
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Tags: due diligence, eb5, EB5 visa, gerrymandering, green cars, I-829, job creation, regional centers, TEA, uscis
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January 2nd, 2012 |
 Today is part 3 of our Open Letter from an experienced EB5 Visa Attorney:
The job creation requirement
The job creation methodology is the single most important aspect to consider when examining regional center programs. In order for an investor to qualify for removal of the conditions from his or her conditional permanent residence, USCIS must be convinced, based on calculations presented by an economist using a reasonable methodology that sufficient jobs have been created, that is, 10 jobs per investor in the program.
Different regional center programs use different methodologies for calculating the number of jobs created. Some regional centers calculate the creation of “direct jobs” based on projections of the number of employees that tenants can employ per square footage of space depending on the use to which the tenant places the rented space, such as retail sales, office, light industrial, or warehouse, among others. The resulting number of employees/jobs is plugged into the economist’s model to produce the calculation of direct and indirect jobs created by virtue of the business consuming goods and services in the local economy.
Other regional centers determine the job creation by calculating all indirect job creation with an expenditure-based economic model. An example of this would be a regional center that makes loans to local and state governments, which use the funds as their matching funds in order to qualify for federal development grants to carry out construction and renovation of infrastructure to create and expand industrial parks and transportation/warehousing centers. The job creation figure is then calculated using a multiplier times the total amount of money spent on construction and renovation, including not only the regional center project’s loan funds but also the federal grant money.
Under the expenditure-based, indirect job creation methodology, the calculation of the job creation is much simpler. It is a matter of multiplying the total amount of money spent by the multiplier under the economist’s model. USCIS might be interested to verify the amount of money actually spent under the terms of the project, but there is no head count for determining the number of direct jobs created, since there are no direct jobs in the calculation, only indirect jobs.
Tomorrow we will cover: Consider factors that could keep the project from fulfilling the job creation requirement
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Tags: attorney, due diligence report, EB-5 Visa, investment advice, job creation, regional center, uscis
Posted in Immigration | No Comments » |
December 28th, 2011 |
 Over the next seven days we will publish, in daily segments, an open letter from an experienced EB-5 Visa Attorney.
Subjects covered will include:
If you are considering using the EB-5 visa program in 2012 you should not miss any of this information. Coming up tomorrow: What is a Regional Center?
+Stephen Parnell
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Tags: 2012, attorney, due diligence, eb-5, EB-5 Visa, exit strategy, immigrant investor, job creation, pilot program, regional center
Posted in Immigration | No Comments » |
October 17th, 2011 |
 When you are looking into the EB-5 visa there are a number of important issues that need to be taken into consideration. One of the most important points relates to job creation. Discussions with potential EB-5 applicants show that this area is often not given a high enough priority.
The EB-5 visa requires ten jobs to be created in a Targeted Employment Area (TEA).
There are a number of problems which can arise regarding the creation of the required ten jobs. The evidence showing that the ten jobs have been created can be a particularly important consideration at the very important I-829 stage (the removal of conditions).
The following are just some of the problems which can arise:-
- The investment is switched by the regional center to another program which does not meet the TEA criteria; this can lead to refusal of an I-829.
- The program hits operating or financial difficulties which necessities a reduction in costs. These reductions may include staffing, which could bring the number of jobs created below the all-important figure of ten.
- Some regional centers programs rely on creating ten direct jobs, a method which may in certain circumstances be difficult to prove.
- A number of regional centers use the “fund-of-funds” type programs on the basis that it may reduce risk. However, the United States Citizenship and Immigration Service (USCIS) has expressed concern on how such programs will be able to allocate job creation between the various programs to ascertain the required ten jobs.
Job creation is very much central to the success of the EB-5 program and it is critical you look beyond the claims made by regional center programs to ascertain just how realistic their job creation plans are.
Just how important those ten jobs are becomes evident when they are not created. Deportation is a possibility if the I-829 petition is unsuccessful and the non-creation of the ten jobs is a strong reason for an I-829 refusal.
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.
For more information on how important the job creation aspects of the EB-5 visa are and how they can affect your EB-5 decision-making process contact Chase Brodsky at Which EB-5 for a free consultation.
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Tags: EB-5 Visa, Green Card via the Red Carpet, I-829, job creation, uscis, Which EB-5
Posted in Immigration | No Comments » |
October 7th, 2010 |
Last week I (Andrew Bartlett) was invited onto a panel of experts that was providing information on the EB-5 visa at a number of European venues. The panel also included people who had successfully applied for the EB-5 regional center visa a few years ago and offered the opportunity for the audience to ask a wide range of questions on the various regional center programs.
Over the next week I will cover some of the questions we were asked by the audience, including:-
- Is the regional center program safe?
- Will my investment be safe in a regional center program?
- How much are attorney fees for the EB-5 visa application process, how to find a reasonably priced and experienced immigration attorney?
- What are the positives and negatives of equity and loan based programs?
- Why do some regional centers emphasize the importance of their job creation program?
- How do I find the most appropriate EB-5 regional center to match my requirements?
- Which are the regional center programs with the best track records?
- Has anyone received their $500,000 in full from the program?
- What is the hidden significance of programs that attract a very high proportion of non English speaking Asian investors?
- Will the EB-5 program continue after 2012?
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Tags: 2012, andrew bartlett, application process, asian, attorney fees, eb-5, eb5, experts, immigration attorney, job creation, questions, regional center, visa
Posted in Immigration | No Comments » |
July 30th, 2010 |
 The family had spent some considerable time investigating options for immigration to different countries with their short list comprising Australia, Canada and the United States. They had concerns regarding the climate being too cold for much of the year in Canada and felt Australia was less central for their business requirements than the USA, deciding that California was the best match for their needs. Once they had determined that California most suited them they had spoken to an Attorney regarding visa options and she had put them in touch with WhichEB5 to take them through the various regional center programs. The family was particularly concerned that once they received the visa there should be no problems at the two year stage (the removal of conditions) so were very insistent that the center should have a proven and straightforward record of job creation. They also did not want a project that could have difficulty obtaining subscribers, in case it did not reach a critical mass and then failed to go ahead. Finally exit strategy and the return of their funds was an important consideration. These specific requirements considerably narrowed down the range of options and after discussing these with them over a number of internet phone conversations, a meeting was held at our office and subsequently they visited three regional centers. Their final decision was based on these visits with the chosen center particularly impressing them, as they felt as an ongoing program it was well proven and minimized as far as possible risk factors. The family has now successfully relocated to California. We have continued to keep in touch and checked out issues that have cropped up with him for the benefit of new investors.
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Tags: attorney, california, Canada, eb5, exit strategy, Immigration, job creation, regional center, removal of conditions, USA, visa, Which EB-5
Posted in Immigration | No Comments » |
July 20th, 2010 |
I don’t usually write about personal experiences in this blog but I must make an exception and tell you about my weekend trip to Martha’s Vineyard to lunch with members of the U.S. Senate.
This weekend I had the pleasure of being invited to have lunch in Martha’s Vineyard with a group of very influential people. Among the group that numbered about forty were Senator Chuck Schumer D-NY, Senator Jack Reed D- RI and Senator Robert Menendez D-NJ (Senator Menendez went on to appear on NBC’s Meet The Press the next day).
Apart from the chance to visit such a beautiful, very hot, destination, a destination that has been frequented by political figures for many years, I was looking forward to having the opportunity to speak with the Senators in a more intimate atmosphere than the usual meetings I have attended from time to time in Washington and to presenting some ideas for improving the effectiveness of the EB-5 program.
The weekend started with a flight from Florida to Boston, a city I have not visited for any length of time before. Arriving a day before the meeting with the Senators I was able to see some of the historic sites of Boston. I particularly enjoyed the State House as it was from here that the British ran the colony well before a famous Tea Party (For those of our readers who are new to American History, this Tea Party has absolutely nothing to do with a current movement you may hear about on the news) signaled the beginning of the end of British rule here in the USA. Being born in the U.K. and later becoming a naturalized American, this was of great interest to me.
 Air Conditioning on a Cesna As the lunch meeting in Martha’s Vineyard was set for 12.00 mid-day on Saturday I had arranged to fly from Boston to MV on Cape Air. The experience flying on an 8-seater, 30 year old Cessna is something quite unique. Just how unique? I have inserted a photo showing the air-conditioning on this flight!
In case it is hard to see I should just explain that the pilot is holding open the window while we are making our way to the take-off point; this allows the passengers to breath! To be fair, the temperature outside was approaching 40 degrees Celsius (100 F). I must also point out that not only were the flights on Cape Air smooth and professional in every way, they were quite enjoyable once one has overcome the typical thoughts associated with self preservation.
Arriving early in MV I had an opportunity to explore a little. I was taken aback by the beauty of the place and can understand why it is the chosen summer destination for so many.
As the lunch party started to arrive I was led to my seat on a table just to the right of Sen. Chuck Schumer D-NY. Leading the speeches was Senator Robert Menendez D-NJ who presented a well balanced delivery covering many topics of importance. Sen. Schumer also spoke eloquently on multiple subjects. Interjections by other guests followed and questions from some of the attendees were also voiced.
I took the opportunity to speak with Sen. Menendez regarding my involvement in, and passion for, the success of the EB-5 program.
My main focus was on the desire for premium processing for the I-526 immigrant investor petition. With premium processing available for many other types of petitions it does not make any sense to me that we make perhaps our most desired class of immigrant, those investing $500,000 to $1,000,000 into the U.S. economy, wait up to four months to know if their petition has been successful. I did emphasize that the staff of the USCIS EB-5 unit have done an outstanding job for us, the EB-5 stakeholders, and we would like to implement an improvement to the program that would also benefit that department. This move alone would, in my opinion, lead to increased use of the visa, more certainty for the applicant, an increase in international investment in the U.S. economy and of course greater job creation. Sen. Menendez was sympathetic to my point and suggested I follow-up with his Chief of Staff (Danny O’Brien) with further details and proposals.
I then had an opportunity to speak with Sen. Jack Reed of Rhode Island. Once again I voiced my enthusiasm and desire to keep the EB-5 program heading in the right direction. Along with the need to implement premium processing we talked about the potential benefits to the State of Rhode Island of establishing a Regional Center there. The Senator appeared interested in exploring this further and suggested we bring the point to his attention once the Governor’s race in RI has been settled.
I must say that I felt it very beneficial to have an opportunity to meet with and discuss these topics with such distinguished guests. If we, as advocates of the EB-5, can make representations to those with an opportunity to champion the concerns of EB-5 applicants in Washington I believe it is what we must do to preserve both the integrity of and future success of the EB-5 program.
I concluded my trip to New England with a visit to Harvard on Sunday morning. At least now I can say “I went to Harvard” even if it was only for a day!
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Tags: american, Boston, british, Cape Air, eb-5, Harvard, I-526, job creation, Marthas Vineyard, meet the press, Menendez, naturalized, New England, political, premium processing, professional, Reed, Schumer, Senator, State House, Tea Party, U.S. Senate, USA, uscis, washington
Posted in Immigration | No Comments » |
March 17th, 2010 |
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A few regional center programs highlight, as a positive indicator, the point that some of their investors are US citizens who although not requiring a visa still decide to invest on the same terms and share the same investments as EB-5 immigrant. This raises other questions which need to be answered such as:
Is this a historic position going back several years, and in the current economic climate is this still the case?
How many new American investors made investments in the past six months?
Presumably the American investors focus was investment, however, from the alien EB5 immigrant perspective, job creation is a critical factor otherwise they risk losing their green cards at I-829 stage (removal of conditions),
It is critical for the potential EB-5 immigrant to make sure all is as it seems – for more information contact us.
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Tags: american, eb-5, eb5, green card, I-829, immigrant, job creation, regional center
Posted in Immigration | No Comments » |
March 5th, 2010 |
 This is an area that can be overlooked when looking into the various EB-5 investor visa regional center program options. Many ask what it means.
In summary, regional center programs vary considerably both in size and popularity. Some Centers have programs only requiring a few investors, some, such as a proposed car plant, will require hundreds even thousands of investors.
Some centers have an established track record and it is possible to determine how long it is likely to take for the program to be fully subscribed; with others there is very little evidence to go on.
However, the questions that need to be asked are:
• What happens if a program does not fully subscribe, can it then go ahead?
• If not, what happens to job creation?
• Will you ever get your money back?
These are clearly very important issues particularly in the current economic climate and ones that seem all too often to be receiving less than adequate attention.
Ask us what this means to the safety of your regional center choice. Contact the experts at Which EB5 for information on regional centers.
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Tags: application, eb-5, eb5, investor visa, job creation, money back, regional center, track record, visa
Posted in Immigration | No Comments » |
February 4th, 2010 |
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This is particularly important at the I-829 stage when conditions are removed, assuming of course that the $500,000 principal has been utilized as required, and the 10 jobs required have been created.
All too often this is an area where not enough attention is given, and in many cases evidence of jobs created will be required. In certain cases a delay or problem with a program could jeopardize the creation of these all important jobs.
However, there is an interesting alternative that is operated by a very small number of regional centers. USCIS recently indicated they are accepting the use of economic models based on infusion of capital. If such a model is used to calculate job projections at the I-526 stage, an investor could receive credit for job creation at the I-829 stage by establishing that the regional center utilized the requisite amount of capital into the new commercial enterprise, and that the new commercial enterprise spent that capital. All this could be done without specific direct data about actual job creation.
“If the infusion of capital occurs according to the approved business plan and economic analysis, and the capital investment scheme comes to fruition in the manner outlined in the business plan, then the economic data provided in support of the Form I-526 petition regarding indirect job creation may demonstrate the creation of the indirect jobs without the submission of further detailed data about job creation at the Form I-829 petition stage”.
Contact Which EB5 for more information on job creation methods and the effect upon your EB-5 visa success.
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Tags: eb5, I-526, I-829, job creation, regional center, uscis, visa
Posted in Immigration | No Comments » |
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