At any one time it is likely that a number of those involved in the EB-5 regional center visa business are on a selling trip to China, they are selling their programs to third-party Chinese agents or directly to Chinese consumers. This focus on China is due to the fact that such a high percentage of EB-5 applicants are from China.
Unfortunately, not all the people advising on the EB-5 will have got in their cars or taken plane journeys and actually travelled to the various regional center programs, spent several days looking around areas and carried out detailed due diligence on the area surrounding a regional center project.
The importance of independent advice and detailed due diligence cannot be understated. The United States Citizenship and Immigration Service (USCIS) have already closed two regional centers. Both these centers had already attracted investors from China. If those clients had sought the right independent expert advice before choosing those centers, they could have been warned about potential inadequacies with these centers.
A number of centers have had I-829 refusals, leaving the unlucky EB-5 visa holders facing potential deportation at some stage in the future. Again one wonders if these people received detailed due diligence information prior to their choice.
Another program failed to create the necessary ten jobs; result, the unlucky clients failed to get I-829 approval and after settling down in the USA will now face potential deportation.
It needs to be realized that the EB-5 visa program is about far more than sales. At the end of the day immigrants are putting their trust, their families trust, their future and $500,000 of assets on the basis of choosing the program that best matches their needs, the need for adequate due diligence should never be underestimated.
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.
Today we are issuing a short but potentially important blog that will be of interest if you are currently considering the EB-5visa.
The EB-5 regional centerpilot program is due to end on September 30 2012. There has been talk of extending this program or even making it permanent and although we are cautiously optimistic, currently this has not happened.
Applications for this visa (I-526), are currently taking between six to eight months to be processed by the USCIS (United States Citizenship and Immigration Service). Although this time scale could come down, this is the current position.
Additionally, those applying for the visa from overseas have to complete Consular processing; this will add extra time to the process. How long depends upon the Consular office they are applying to.
Clarification is being sought as to whether Consular processing needs to be completed before the September cutoff date, or whether it can be completed afterwards.
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.
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 programGreen 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.
The expansion of the EB-5 regional center visa 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.
One issue this site sets out to emphasize is the need for prospective EB-5 applicants to fully understand all the facts before deciding on a particular EB-5 Regional Center program.
As one of very few sites working only with individual clients from all over the world, and not providing marketing or sales advice to Regional Centers, we continually stress the importance of looking behind the promises and sales messages of Regional Centers to identify the actual reality.
There have been a number of examples of EB-5 clients coming across problems with their chosen EB-5 program several years after selection.
A number of people have been successful with their original I-526 application and indeed their subsequent I-829 application for removal of conditions. However, after several years when they were hoping to see their capital returned they have found, in reality they face a probable wait of many more years before they are likely to see the return of their funds.
In the current economic climate (in the USA) many investments are suffering from losses, particularly some associated with domestic and commercial real estate.
There is however proven and specific EB-5 programs which clearly lay out a timed exit strategy for return of the capital and also comply with all USCIS requirements.
Many have found it useful to begin researching the EB-5 process by reading the only published consumer guide on the EB-5 visa pilot program Green Card via the Red Carpet.
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.
It has become apparent that there was a lot of important information to be learnt from the research carried out by our previous 250 plus clients, as well as their experience with the various Regional Center programs they selected.
Families looking at the EB-5 over the years have used different approaches to decide which is the most appropriate regional center program for them. Some just wanted to know which regional centers with proven programs best matched their requirements, others spent literally months working with us on looking in great details at all the options and then undertook very detailed additional due diligence on a shortlist.
A number of these clients bring considerable business, financial and legal experience to these checks as they are leading accountants, CEOs, lawyers, and business owners and thus they know exactly what qualities they are looking for and require very detailed information.
Feedback from these families, who we have successfully worked with, all add to the important information we can provide for those of you looking for as much detailed and impartial advice on the various EB5 programs. Interestingly, these are not necessarily the programs heavily promoted in non-English speaking countries, and the reasons for this are particularly interesting!
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 advisers 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.
