Another recent piece of bad news about an EB-5regional center highlights the problems for potential EB-5 visa users and the importance of doing adequate due diligence before selecting a particular regional center program.
Once again the news mainly affects EB-5 applicants from China. We have issued a number of warnings in recent weeks for potential clients from China who do not have full access to US internet sites and are often reliant on the information provided to them by agents based in China. Some of these agents receive high commission payments if someone chooses the program they are recommending.
According to the Pasadena Star-News, a local US newspaper, a Regional Center program was closed last week, with officials from various Government departments in the process of carrying out investigations. According to the newspaper report, despite the closure developers are continuing to seek investors, particularly from China! It was rumored the developers were using official Government seals in their sales literature which potential buyers might assume indicates Government support for the program, this is not the case.
Although questions are still being asked about this program the potential problems do highlight the need for potential EB-5 clients to thoroughly research the implications of the visa and the Regional centers programs they are considering when committing $500,000 of their money.
The sad thing is there are programs available that can point to an excellent track record; however, potential clients, particularly in China, are not always given all the necessary information they need to make a fully informed decision.
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-5Regional 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.
Last week we received the following question from a potential EB-5 applicant.
I am very interested in using the EB-5 visa as the most appropriate method to bring my family to the USA by next summer. I understand that we have sufficient funds to cover the costs and associated fees. I have done some research on the visa; however there is one question I simply cannot get a straight answer to. When exactly will I get my $500,000 returned?
“I understand the money is required to be at risk, however, I wish to minimize the risk as far as possible. I am looking for a program that offers a clear, specific fixed term that lays out a clear date of return for my money”.
This question is one that we hear frequently. The problem is the vast majority of EB-5 Regional Center programs fail to provide a specific exit strategy with a date for the return of the clients $500,000. Many regional centers refer to ambiguous terms and quasi guarantees relating to market conditions. The problem with such a lack of strategy in the current economic climate is that with no clear date it could be many years before funds are returned.
There is however a few well proven specific programs that have a clear fixed term period (usually between four to six years) for the return of the capital. If you would like details of these programs or more information please contact the EB5 experts at Which EB5
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.
If you are trying to find out as much information as possible about the EB-5 Regional center program the task facing you can be daunting.
Inquiries to Attorneys can sometimes be met with being passed off to a junior member of staff, or a stream of complex legal information or even in certain cases a quasi sales pitch actually promoting a particular program that the Attorney may receive a fee from, but which they may never have visited.
Inquiries to the Regional Centers are usually met with a mass of information that often falls into two types: There is the glossy promotional material, usually one sided saying how great their program is. Following this can be an extremely large document written in one sided legal language that may be very difficult to understand without expert help.
If you do not speak/read English fluently you may be relying on an agent who speaks your language who receives a commission from the Regional center if you buy the program through them; or perhaps material translated by that very same agent.
The problem is, choosing the most appropriate regional center that best matches your personal requirements is fundamental to the success or failure of your immigration path and the return of your $500,000 capital.
Get this wrong and you and your family could face deportation and/or loss of some or all of your $500,000.
It is important that you receive impartial, independent and experienced advice from experts with a 100% track record working with EB-5 clients.
Many have found it useful to begin the process by reading the only published consumer guide on the EB-5 visa pilot program Green card via the Red Carpet.
A recent article in Bloomberg Business week headlined that the EB-5 program has attracted $1.5 billion and created 31,000 jobs, important additions to an ailing US economy. With the popularity of the program, which is due to expire in September 2012, streamlining of the application process by The United States Citizenship and Immigration Service (USCIS) could be very good news.
The Bloomberg article comments that many business ventures throughout the U.S. are finding backers through the EB-5. The article then goes on to say:-
“The primary conduit of investments for the EB-5 program faces an uncertain future. About 90 percent of the money is funneled through private companies, known as regional centers, which match overseas investors with businesses in need of capital. These companies are authorized to participate in the program by legislation that expires every few years. They could be shut down if Congress fails to reenact the law by September 2012.
Immigration Services data show that in the past five years regional centers were responsible for nearly 10,000 jobs and more than $400 million in investment. In 2007 there were only 11 of them. Today there are 147, with 146 more seeking approval.”
US Government statistics show that 1,885 people (about half of them from China) got EB-5 visas in the 12 months through September 2010. In the six months through March 2011, the State Dept. estimates it issued more than 2,100 visas. Regional center directors say the number of applications has increased because it is so difficult for small businesses to get financing these days.”
With popularity in the EB-5 increasing, the cut off date of September 2012 may be a cause for concern (depending on whether it is renewed.) Plans presently being introduced by USCIS to substantially reduce the speed of processing applications for the EB-5 may be very good news, allowing several thousand more immigrants to make their applications before the closedown date.
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.
If you would like more information on these visa options and a free consultation contact Which EB5.
In a number of previous articles and blogs we have reported our concerns on poor and misleading advice that we seem to regularly discover on the EB-5 visa.
Given that prospective EB-5 applicants are required to invest at least $500,000 in a Regional Center program and in so doing are not only putting at risk their capital but also their ongoing visa status until conditions are removed (I-829 stage) it is vital the advice received is both informed and impartial.
We recently came across an article offering advice on EB-5 programs; the article listed a number of issues that it suggested were appropriate considerations to take into account when reviewing regional center options. The advice suggested selecting a Regional Center in an area that you may like, or consider a good location to live in. This advice could be particularly dangerous.
Prime considerations might include the track record of the center, numbers of previous successful I-529 and I-826 applications, the location of the project in a rural or targeted employment area, expertise on immigration and many other important matters.
However, focusing on a regional center projects desirability as being in a nice location is absurd, it has nothing to do with the all important criteria that will determine whether you see the return of your money and/or maintain your permanent residency status.
If you are considering the EB-5visa 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
In an attempt to find out which is the most appropriate regional center program, some families put a lot of emphasis on information they obtain from statistics.
The problem with statistics is they can present data in a dangerously misleading way.
As an example let’s look at an often asked question -
Which are the EB-5 regional centers with the highest number of I-829 approvals?
OK, the statistics may give you the approval figures, (depending on which source you obtain them from) but they will not give you the all important conclusions to draw from this question.
For example the statistics do not tell you -
If the approvals were for a regional center that operates different types of program. Some centers regularly offer different programs that vary enormously in quality.
They will not tell you if USCIS has changed its perspective on the program for that center. Simply because USCIS previously approved a program this year is not necessarily a guarantee they will next year, what happens if criteria changes?
The statistics will not tell you the likelihood or otherwise of applicants getting their $500,000 capital back from a center. Many EB-5 visa applicants need to have both their visa approved and also to see the return of their $500,000 in a reasonable period of time.
Statistics will not tell you the very important implications if most of the applicants are from a particular country, particularly a large non English speaking country such as China. It is very important you are made aware of the potential implications of this.
How many approvals are we talking about?
A figure of 100% on a handful of approvals over a five year period or 80% on several hundred?
Why a center with one of the highest number of approval figures also has had a number of I-829 refusals, it is critical you are made aware of the extremely important implications of this.
Choosing an EB-5 visa regional center program requires experienced and impartialadvice, you cannot simply rely on the statistics given by the regional centers or some of the consultants and attorneys who may actually be working with a particular regional center.
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-5visa 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.
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.
