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 30th, 2011 |
 Just a reminder:
My name is Anthony Olson, and I am a lawyer who operates an immigration law practice with offices in Sarasota and Fort Myers, Florida. The following information includes my analysis of certain aspects of the Regional Center program that you should consider in seeking to optimize your chances of success in the United States immigration process. Also included is a discussion detailing the process of applying for permanent residence in the U.S. through the EB-5 Immigrant Investor Pilot Program.
Please understand that any information contained herein do not constitute legal advice, nor investment advice, nor a due diligence report of any kind, and that your receipt of this information does not by itself create an attorney-client relationship.
The importance of conducting your own Due Diligence—This is not a Due Diligence Report
I want to stress that the information presented here is intended to help potential investors understand the basic issues that should be considered in beginning the search for a regional center project, to optimize your chances for success in obtaining full permanent residence in the United States by utilizing the immigrant investor program. As an immigration lawyer, I like to see a “good fit” between immigrant investors and regional centers because good investments enhance and facilitate the success of the overall immigration process. It is important to understand, however, that neither I, nor my law firm, advise our clients to invest – or not invest – their money in any particular investment opportunity, or any regional center. We do, however, recognize that having our immigration clients invested in viable regional centers enables us to assist the investor to remove conditions from his or her immigration status, and thereby to ultimately gain full permanent residence. So, any information we provide about the regional centers is presented with that goal in mind. We discuss and present the business aspects of a particular program solely to help you and your business advisors assess the prospects for success and sustained viability of a particular regional center.
However, in presenting what we feel could be advantages in a particular regional center, we do not endorse or promote the merits of any regional center’s business model, or its job creation methodology, and we make no representations as to whether investing funds in any particular regional center will be viable, profitable, or safe. The potential risk and reward of any investment opportunity is a matter that requires the utmost due diligence on your own part and that of your own business advisors or tax advisors. In this regard it is important that you conduct your own due diligence by retaining a certified public accountant (CPA) to examine all financial aspects of any regional center’s program, and a business attorney to examine all legal aspects of the program. Before you invest in any regional center program, you should understand in great detail how the business model works, whether you will be comfortable with investing in the program, and what your rights and obligations would be if you become an investor and a co-owner in the project.
While we do NOT endorse any specific regional center programs, we do handle and process EB-5 regional center petitions with USCIS. In that role I cooperate with EB-5 regional center program consultants, such as those employed by www.whicheb5.com, and those consultants have a good deal of valuable information regarding many different Regional Centers and they do assist investors in gaining an overview of the nature of various Regional Centers as well as their relative strengths and weaknesses. These consultants provide such information about different regional centers through consultations, and on their website, www.whicheb5.com
Next we will cover: The job creation requirement
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Tags: due diligence, eb-5, immigrant investor, immigration lawyer, pilot program, regional center, uscis, Which EB-5
Posted in Immigration | No Comments » |
December 29th, 2011 |
 My name is Anthony Olson, and I am a lawyer who operates an immigration law practice with offices in Sarasota and Fort Myers, Florida. The following information includes my analysis of certain aspects of the Regional Center program that you should consider in seeking to optimize your chances of success in the United States immigration process. Also included is a discussion detailing the process of applying for permanent residence in the U.S. through the EB-5 Immigrant Investor Pilot Program.
Please understand that any information contained herein do not constitute legal advice, nor investment advice, nor a due diligence report of any kind, and that your receipt of, and or use of, this information does not by itself create an attorney-client relationship.
What is a Regional Center? A “regional center” is defined by the United States Citizenship & Immigration Services (USCIS) as “an entity, organization, or agency” that USCIS has approved as a designated Regional Center for the investor pilot program. Under the federal statute authorizing the EB-5 Immigrant Investor Pilot Program, an approved Regional Center can be any public or private economic unit whose purpose is to seek “to promote economic growth through export sales, improved regional productivity, creation of new jobs, and increased domestic capital” as explained within the USCIS website. Each Regional Center focuses specifically on a defined geographic area of the United States, and positively affecting the general welfare and economy of that area by attracting capital investment. Regional centers are typically located in targeted employment areas or rural areas, so as to offer qualification with a $500,000 investment, but there are regional centers in some U.S. locations where a $1,000,000 investment is required in order to qualify. The organization that holds the Regional Center designation generally operates by forming limited partnerships to engage in specific business projects designed to accomplish at least one or more of the above-stated purposes of the EB-5 Pilot Program. Most typically, the focus is on job creation, because that was Congress’ primary purpose in creating the program. The organization also typically serves as the managing general partner for each such limited partnership, while the investors are limited partners.
Tomorrow we will cover: The importance of conducting your own Due Diligence
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Tags: due diligence, eb-5, EB-5 Visa, immigrant investor, immigration law, pilot program, 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 » |
December 20th, 2011 |
 An article in the New York Times has highlighted a potential weakness in the EB-5 visa program that may impact on certain regional center projects. The EB-5 visa requires an applicant to invest $500,000 to $1,000,000 in what are termed regional centers; these centers are approved by The United States Citizenship and Immigration Service (USCIS).
The EB-5 visa has proved an increasingly popular choice in 2011, interest in the program has grown so fast that the USCIS are attempting to streamline the application process.
Given the tightening of credit availability the EB-5 has been viewed by some real estate developers as the ideal way to raise funds, particularly for construction projects.
The idea behind the program is to create jobs, ten per $500,000 investment in targeted employment areas [T.E.A’s]
An examination of the program by The New York Times suggests that in New York, developers and state officials could be stretching the rules to qualify projects for this foreign financing.
There is concern that developers are relying on gerrymandering techniques to create development zones that are meant to be in areas of high unemployment (thus qualifying for the $500,000 investment) but according to federal and state records are in prosperous ones.
The article mentions as a prominent project the International Gem Tower, a 34 storey glass tower in Manhattan that is to cost $750 million with one fifth of the funding coming from EB-5 applicants.
Although it is being built in an area that is reported as one of the wealthiest in the country, the Times reports that through the selective use of census statistics the project falls under (the $500,000) EB-5 requirements.
The newspaper reported that during an interview a senior federal immigration official, Alejandro Mayorkas, acknowledged that the program may need more scrutiny and maps being approved by certain states might not adhere to the spirit and intent of regulations.
There is mention of another area which has been classified as being located as an area that needs help attracting jobs; however there are concerns that the zone resembles a gerrymandered political district.
The article does raise an issue that may be of concern, in that if a particular EB-5 project is judged not to be in a properly qualified Targeted Employment or Rural area the $500,000 investment should actually be $1,000,000.
The continued importance of obtaining independent impartial advice before considering a move to the USA, using the EB-5 visa program, is critical. As a first step it is worth studying the only published consumer guide on the EB-5 process Green Card via the Red Carpet which is available at Amazon.
For personal, one-on-one, impartial information on the EB-5 visa contact Which EB-5 via Email or telephone at +1-561-771-1330
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Tags: Alejandro Mayorkas, amazon, eb-5, EB-5 requirements, EB-5 Visa, gerrymandering, Green Card via the Red Carpet, International Gem Tower, Manhattan, New York Times, regional center, TEA, uscis, Which EB-5
Posted in Immigration | No Comments » |
December 16th, 2011 |
 2011 has seen significant numbers of families from all over the world choosing the EB-5 visa as their preferred method to gain permanent residence in the USA.
Unfortunately some of those families received inadequate or poor advice and selected regional center programs which were flawed.
Some of the problem programs were identified before applicants received their I-526 approvals and have had their status revoked by The United States Citizenship and Immigration Service (USCIS). However, other applicants have chosen programs which face potential issues at either I-829 stage or at the time when the exit strategy was planned to take effect.
Many users of the EB-5 visa program rely on overseas agents and regional centers to provide information; however, the information fails to disclose important weaknesses.
Each year we travel many thousands of miles looking at regional center programs. I recall one particular visit to meet with two Regional Center principles, they asked me to meet them at a local hotel as they could not meet on the site where their program was due to be operated. I located the gentlemen in a public area of the hotel with a number of cell phones spread out in front of them. During the meeting the phones would ring from time to time. It turned out these calls were from people calling from overseas to get details of their program. However, the program which required enormous amounts of foreign capital did not even have an office to work from, or any staff (other than the principals) to answer the phone!
Over the years there are many other issues I have come across from visiting regional center programs that would not be evident to anyone who has not made a visit to the site. I have also come across well run programs where jobs have been created.
The importance of obtaining independent impartial advice before considering the EB-5 visa is critical. As a first step it is worth reading the only published consumer guide on the EB-5 process Green Card via the Red Carpet.
For a personal one-to-one consultation with an expert EB5 attorney and consultant please contact Which EB5
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Tags: EB-5 Visa, Green Card via the Red Carpet, I-526, I-829, permanent residence, regional center
Posted in Immigration | No Comments » |
December 12th, 2011 |
 During a recent first contact with a potential EB-5 Visa client the following questions were asked. I thought it would help if I shared these questions with you in case some of them had crossed your mind.
Here are the questions:
What number can I call to get more details about this program over the phone?
You can call Which EB5 Visa experts at +1-561-771-1330 Press “0” for a live operator
Can you tell me which states are operating this program?
Approximately 26 States have Regional Centers at this time. The highest concentrations are: CA 16 – FL 8 – NY 6
What is the smallest investment required?
$500,000
Is it less in some other states?
No, the smallest is the same regardless of State.
How long is it before I get my green card?
At this time (timing does vary so please check with us for up to the minute updates) you should allow about 12 months for the entire process.
How much return would I get yearly, either divided or interest on my capital investment of $500,000?
That will depend entirely on your choice of Regional Center project.
Which state has better returns?
It is not State specific but rather project specific.
Is program under federal government supervision?
Yes. The USCIS approve each Regional Center and they have the ability to withdraw or cancel a centers designation.
Is it totally safe?
No. The rules of the EB-5 Regional Center program require your funds to be “at-risk”. Your choice of Regional Center project will dictate the amount of risk.
What is the visa quota for this program yearly?
A total of 10,000 with a set-aside of 3,000 explicitly for the regional center pilot program.
Is it county specific like other visas?
No restrictions as to country.
We hope you find this useful? If you have any questions about the EB-5 Visa program please do not hesitate to put your question(s) to the EB5 Visa Experts at Which EB5 by email or by calling +1-561-771-1330
+Stephen Parnell
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Tags: at risk, EB-5 Visa, eb5 experts, green card, pilot program, questions, regional center, uscis
Posted in Immigration | No Comments » |
December 9th, 2011 |
 At a recent Senate Judiciary Committee Senators from both Democrat and Republican sides of the House got together to discuss Bill S-642, a proposal to make the EB-5 Regional Center program permanent. During the one-hour plus discussions (see video of the proceedings here) testimony was heard from, among others, the most ardent supporter of the EB-5 program, Senator Patrick Leahy. Regular readers of this blog will recall that I had the pleasure of meeting with Senator Leahy at a breakfast in Washington in 2009. Senator Leahy presented the most compelling reasons as to why this program should be made permanent.
The overall tone of the hearing, in my opinion, was positive. In general, any less-than-positive remarks were confined to tightening-up the rules of the program to make sure, among other things, that the jobs created by the program are going to American Citizens and permanent residents as opposed to those that might not have work authorization in the USA.
Among other supporters of S-642 is Senator Chuck Schumer who, despite not attending the hearing, did issue a statement containing the following quote:
….That’s why I am proud to be sponsoring S-642 with Senator Leahy to permanently authorize the EB-5 program. We need to permanently authorize the EB-5 program as soon as possible, and we should not tie the reauthorization of the EB-5 program to any other program. If all of us agree that this is a good program, let’s all cosponsor and pass S-642.
We, at Which EB5, applaud the message that the Senators are sending.
My opinion from watching the proceedings is that we will secure a permanent reauthorization of the EB-5 Regional Center program. However, if I were to take a view that some changes might be made to the program I would have to say that it might, just might, be that the amount required to participate may increase above the current $500,000 level. Just my humble opinion.
If you would like to discuss any aspect of the EB-5 Visa Program please contact Which EB5 via email or telephone +1-561-771-1330
+Stephen Parnell
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Tags: eb-5, EB-5 program, EB-5 Visa, regional center, S-642, Sen. Patrick S. Leahy, Senate, Senator Chuck Schumer, USA, washington, Which EB-5
Posted in Immigration | No Comments » |
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