Which EB5
EB-5 visas – Do I need to select a regional center based on where I am going to live in the USA?
August 19th, 2010

The EB-5 regional center pilot program visa provides the opportunity for green cards and permanent residency in the USA for the applicant, their spouse and children under 21. The U.S. government, through The United States Citizenship and Immigration Service (USCIS) has so far approved approximately 100 regional centers to offer programs that qualify for this visa which requires an investment of $500,000 if the program is in a Targeted Employment Area (TEA).

One of the questions sometimes asked by potential applicants is do I have to live in the area that I invest in? The simple terms answer is no. Under the regional center pilot program you are free to invest in any of the regional center programs and can live wherever you want, regardless of where you invest.

Having established you do not need to invest where you live, it is worth examining why you would even want to.

It is a reasonable assumption that most families looking at the EB-5 regional center route to permanent residency in the USA, wish to invest in program that best matches their priorities and requirements, which according to leading EB-5 consumer advocates, has:-

  • A good track record of approvals.
  • Clear evidence that the program will create 10 jobs per investor, or in certain cases save jobs, and return the $500,000 investment.
  • A fixed term so they know exactly when their investment will be returned.

Most don’t want

  • Ambiguity regarding the term, particularly in the current economic climate
  • A project that has experienced  refusals, particularly at the I-829 stage. (This relates to the removal of conditions after two years).
  • A center currently experiencing litigation or potential shut down by USCIS.
  • Directors with an ambiguous or troubled history.
  • A regional center program that simply views the program as an easy and cheap way to raise cash, from captive and unprepared overseas investors.

As you can from the above criteria, the key is to find the best program to match your requirements rather than focusing on a program in the location you are planning to reside in. It is imperative you chose the most appropriate regional center program regardless of where it is located, as you require it to work, so the necessary jobs are created, the program succeeds and your investment is returned. It is pointless choosing a program in the area you are planning to live in unless it can deliver these essential requirements.

 
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Can the U.S. Senate help improve the EB-5 Program?
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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List of EB-5 Regional Centers
June 4th, 2010

With approaching 100 regional centers approved by USCIS to take your $500,000 in exchange for a Green Card some of you may be searching for a directory of EB5 regional centers.

The problem is the directory is just that, a directory, and a particularly dangerous one at that. The information contained may provide the basics but it is what it does not contain that can be a potentially serious issue.

  • An EB-5 directory does not tell you which of these centers have returned all the original $500,000 of investors’ funds and which have not.
  • A directory does not give you an independent analysis of the positives and negatives found when an impartial expert visits the center.
  • A directory does not tell you which of these centers have been subject to negative comments in trade and local newspapers.
  • A directory does not tell you which centers have specific economic models which many immigrants are looking on with favor in the current economic climate.

These are just a few examples of why we feel a directory alone is potentially dangerous and why you need to know the positives and negatives of the regional centers you may be looking at – for more information visit www.eb5-info.com

A Directory of EB-5 Regional Centers

Alabama -America’s Center for Foreign Investment
Arizona – Arizona EB-5 Regional Center
California – Alliance Regional Center
American Logistics (International) Regional Center
American Redevelopment Regional Center
Bay Area Regional Center
California Consortium for Agricultural Export (CCAE)
California Global Alliance Regional Center
California Investment Immigration Fund
California Military Bases (CMB)
California Wineries and Vineyards
FDIUS Regional Center
El Monte Regional Center
Green Energy Regional Center
Imperial Regional Center
Los Angeles Regional Center C/O American Dream Fund
Los Angeles Regional Center California Film Commission
M&D Regional Center, Regional Center Properties
Regional Center Management Los Angeles
Riverside PUMA Area Regional Center
South East Los Angeles Regional Center
Victorville Regional Center
YK America Regional Center
California Energy Investment Center
Silicon Valley Venture Investment Regional Center
Colorado – Colorado Intercontinental Regional Center
Rocky Mountain High Regional Center
Anacostia Regional Center
Capital Area Regional Center TM, EB-5 America
Florida – BirchLEAF Miami 31
Florida Equity and Growth Fund Regional Center
Florida Overseas Investment Center
Lake Buena Vista Regional Center
Palm Beach Regional Center
Regional Center of South Florida
South Florida Investment Regional Center (SFIRC)
America’s Center for Foreign Investment
Georgia – Atlanta EB5 Regional Center
Georgia Center for Foreign Development and Investment
America’s Center for Foreign Investment
Guam – Guam Strategic Development Regional Center
Hawaii – EB-5 Jobs for Hawaii
Hawaii Regional Center
Golden Pacific Ventures Regional Center
Idaho – Idaho State Regional Center
Invest Idaho Regional Center
Illinois – Chicagoland Foreign Investment Group (CFIG) Regional Center
LaSalle County Business Development Center (LCBDC)
Iowa – Iowa Department of Economic Development (IDED)
Kansas – Kansas Bio-Fuel Regional Center
Louisiana – Gulf Coast Funds Management Regional Center
New Orleans’ Mayor’s Office Regional Center
Louisiana Mississippi Regional Center
Massachusetts – EB-5 jobs for Massachusetts Regional Center
Mississippi –  Gulf Coast Funds Management Regional Center
Mississippi Gaming and Entertainment Regional Center
Michigan – EB-5 MRC
Lansing Economic Development Corporation (LEDC) Regional Center
International Michigan Investments Regional Center
Nevada – Clark County Regional Center
Nevada Regional Economic Development Center (NREDC)
New Jersey- New Jersey Regional Center
New York – Buffalo Regional Center
New York City Regional Center
Upstate New York Regional Center (UNYRC)
North Carolina – North Carolina Center for Foreign Investments
Carolina Center for Foreign Investments
Ohio – Cleveland International Fund
CMB Summit Regional Center
Northeast Ohio Regional Center
Oklahoma – South West Biofuel Regional Center (SWBRC)
Pennsylvania – Philadelphia Industrial Development Corporation (PIDC) Regional Center
South Carolina – Carolina Center for Foreign Investment Regional Center
South Dakota – South Dakota International Business Institute (SBIDI)
South West Biofuel Regional Center (SWBRC)
Tennessee – America’s Center for Foreign Investment
Texas – City of Dallas Regional Center, Global Century Regional Center
Vermont – Vermont Agency of Community Development EB-5 Regional Center
Washington – American Life Regional Center
Aero Space Port International Group (ASPI Group) Regional Center
American Life Seattle Regional Center ( Gold Rainbow Freedom  Fund)
Twin Development Regional Center
Whatcom Opportunities Regional Center
American Life Ventures Tacoma Washington
Wisconsin –  Ecorntech Regional Center
Metropolitan Milwaukee Association of Commerce (MMAC)

 
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What happens to your money in an EB-5 Regional Center if things go wrong?
June 2nd, 2010

What happens if things go wrong in an EB-5 Regional Center?

Along with having a good fall-back plan, your regional center should also be able to tell you what will happen to your investment if problems do arise with the project and / or your immigration application.  Some EB-5 immigrant investors have failed to consider this question because they have been dealing with advisers or a regional center intent on selling a product and making their commission rather than going into the necessary background detail.

You will want to know is whether or not your funds will be escrowed.  The next question that needs answering is what happens to those funds if your (I-526) petition for a green card is denied.  If USCIS (United States Citizenship & Immigration Service) does not approve your application and grant you a green card, will your funds be refunded to you?

This again may seem another question that should be simple enough to answer. Many regional centers do engage in some process of escrowing funds and maintain a policy of refunding money for failed applications.  However, do not discount the value of your independent adviser in these matters. Whether or not your money will be refunded is not a simple yes or no question.

Although most centers have a refund policy, it needs to be determined what the conditions are in regards to that—what are the terms under which you will qualify for a refund of your investment money (do not expect a regional center necessarily to want to part with an investment of $500,000 to $1 million!—don’t take assurances at face value!).

You need to know the specific circumstances under which the center is willing to refund your investment in the case of visa denial; the typical EB-5 regional center refund policy applies only if the visa petition is denied because of some problem with the center’s project.  It may not necessarily apply if the visa is denied due to an issue that the center considers being the immigrant’s responsibility.

For example, if USCIS determines that the evidence supporting the legal source of obtaining your invested funds is insufficient, or if there are criminal convictions or other dis-qualifiers present, the center may deny the refund.  Every regional center has its own policy regarding the refunding of invested capital, and these policies can vary widely.  It is important to research the policies ahead of time and to compare and contrast between them.  An experienced adviser will be familiar with the various policies and be able to point out to you which areas and dis-qualifiers could be potential cause for concern.

Even assuming good due diligence in this respect, there are even more considerations that your adviser will go to in order to help you understand exactly how safe your investment is in relation to visa approval, and what the real likelihood of a refund is.  There are two more major considerations, and more that your adviser will discuss with you.

The first of those two is the attitude of USCIS toward your refund agreement.  If your funds are guaranteed, will USCIS consider them to be at risk?  Will they qualify as an at-risk investment capable of qualifying for visa application and later approval?  Will those funds need to be released and so not be able to be subject to escrowing or refunding?  These are questions and answers that a third-party adviser will evaluate and help to answer for you.

USCIS aside, you also need to consider the safety and legality of the escrow fund that your money is being kept in.  If you do not use extreme caution at this point, you stand to lose all of your invested money.  Let your adviser do his or her job here, and make sure that this is a real escrow fund and that your rights and ownership are being protected.  Let them look further into the matter, and find out what the disposition of other funds has been—were the monies invested?  Were funds returned to investors?  Why?  How difficult was it for failed applicants to recoup their funds?

Clearly, the matter of safety of your investment is one that requires much care and research.  This is not just about good business planning; the safety of your funds is also about the center’s track record and good business practice.  It’s a level of evaluation that goes layers deep beyond the transparent, and one that you will surely want to know has been explored to all the possible depths.

 
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EB-5 Visa – Where can I get real information?
May 28th, 2010

Where to get real information on the EB-5 visa program

As the EB-5 program has now been operating for several years there are a numbers of families who have experienced the entire cycle. They originally obtained their I-526’s, and their green cards, had conditions removed via the I-829, have lived in the US long enough to apply for citizenship, and have had a return on their original $500,000 investment or are due to in the next few months.

Their experience on the return on their investments are particularly interesting for those considering the EB-5 option as some investing in particular regional centers received back less than they originally invested; others are likely to receive back at least the $500.000 they initially invested possibly more.

It is also interesting to analyze the experience of the many regional centers that have been approved by the USCIS to offer regional center EB-5 programs; there are significant differences when using different criteria to measure results, all of which are important for potential EB5 investors to understand.

If you are seeking feedback of either immigrant’s experience of the EB-5 or the experience of the various regional centers it would be worth contacting Which EB5 who have carried out extensive research in these areas and received feedback from families who have been through the entire EB-5 process.

 
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EB-5 investment visa bucking the trend in the USA?
April 30th, 2010
USCIS are doing a great job for EB-5 Stakeholders

USCIS are doing a great job for EB-5 Stakeholders

I read a quote from an immigration attorney today that I thought worth commenting here on our blog; here is the quote:

“This administration has made it increasingly difficult to obtain visas because of bureaucratic incompetence and potential business immigrants are now choosing to avoid the United States altogether, because the obstacles at times are insurmountable”.

From personal experience, including a visit to the California Service Center of the USCIS where all EB-5 visa applications are adjudicated, I can tell you that the USA is attracting more EB-5 visa attention from abroad than ever before and that we are enjoying regular processing time for an immigrant investor petition, an I-526, of 90-100 days. If that is “bureaucratic incompetence” then I can’t wait for things to improve!

Really folks, the CSC are doing a very good job of keeping-up with processing times and offer us EB-5 stakeholders a generally good service. Rather than trying to knock the service levels we enjoy, yes, I said enjoy, shouldn’t we all be working together to make sure petitions are complete and fit all required criteria? This way we can build our relationship with the civil servants that process the EB-5 applications and foster a professional relationship rather than making excuses.

Just my humble opinion.

 
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Number of regional centers offering the investor visa program
April 12th, 2010
News of the increasing number of EB-5 Regional Centers

News of the increasing number of EB-5 Regional Centers

Not so long ago there were only a handful of regional centers offering the EB-5 visa pilot program. However, over the past year USCIS has approved a large number of new regional centers that are offering a wide range of options. Clearly some of you will view a wider range of choices as being a good thing, but judging by the ever increasing number of questions recently it is also a potential cause for confusion.

We have been concerned that some of the companies and individuals seeking to set up new regional centers seem to have business plans based more on obtaining cheap funding from large numbers of overseas investors rather than on satisfying USCIS job creation requirements. If these business plans fail, the immigrant visa investor risks losing both their $500,000 and fees along with the loss of their green cards after two years.

If you would find it helpful to have our input, based on our ongoing research, multiple regional center site visits, and working with many previous immigrant investors, please feel free to contact us (use the short form on this page) so we can share our investigations with you on a range of issues that could catch you out.

 
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Comparing US immigrant investment programs – established or new?
April 5th, 2010
What is best, an old established regional center investment or a new one?

What is best, an old established regional center investment or a new one?

Regional center track records are one of the first forms of comparison that help investors choose between alternative investment possibilities.  Early on in the EB-5 program, that was almost enough to compare center to center and come up with your favored option.  As there were only a handful of approved centers, comparisons were fairly straightforward. That situation has changed dramatically in recent years.  With more than 80 approved centers and more being added to the list on a regular basis, it is much harder for immigrants to compare all the centers, to understand the diversity of information and statistics that are found, and to be able to confidently choose which center is best for their needs.  Add to that the facts discussed before—the fact that the centers should not be your one and only reliable source of research and information—and what you have is an unmanageable situation for the average immigrant investor.

In addition to this, and this is a very important fact to highlight and always remember, there can be quite a lot of differentiation even within an established and trusted regional center.  A good track record with a specific or past project may not be a guarantee of the investment and visa potential of the next planned project.  For this reason it is always necessary to evaluate not only the overall and long-term track record of the center, but also the track record of each project in conjunction with an in-depth analysis of the proposed projects that are being offered by the center at the current time.

It is also critical to know that designation or approval as a regional center by the USCIS does not mean that all projects and petitions emanating from that center will automatically be approved.  Each project that the center undertakes is evaluated individually, as are all petitions and applications.  It is true that designation as a regional center may be a more secure avenue of investment for immigration, but this is only a threshold requirement—the project and the petition still need to prove their worth beyond doubt to the USCIS.

The track record of a regional center, while not a guarantee of individual approval, is a strong indicator of what the center and its management are capable of achieving.  It indicates whether or not the program and its principals have the “know how” to develop strong investment programs that will qualify as immigration investments and get approved by the USCIS, and whether or not the individual investor’s petitions will be approved, both at the I-526 Stage for Conditional Permanent Residence and at the I-829 stage for Removal of Conditions.

That being said, track record alone is still not enough for you to commit to any regional center.  The project that you are considering also needs to be thoroughly evaluated on its own merits.  Success with a past project is a good start, but in conjunction with this you need professional advice to determine the potential viability of the project.

To add yet another contributing factor to the mix, all the recently launched centers and new projects must also be evaluated and considered.  It takes an even higher level of care, research, and due diligence to evaluate the potential of a brand-new project where there is little or no record of success to fall back on.  In order to consider a new center and/or project on your regional center “short list”, it must be thoroughly researched in conjunction with economic forecasts and business plans in order to determine its potential viability.
Contact Which EB5 for in-depth analysis of any potential regional center investment you are considering

 
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Which EB-5 regional center attracts the most immigrant clients?
March 24th, 2010

A few EB-5 regional centers make this claim however, some qualification is required, for example – immigrants

  • How do they know, given that USCIS does not provide that information!
  • Is this based on the number of years they have been operating?
  • Since the economic slowdown are the centers making this claim still attracting the most clients?
  • Do these immigrants come from just a couple of countries where the center has a number of agents operating?  (In this case what are the implications if most of these immigrants do not speak English?)
  • Why does one organization, which has probably had the most clients overall, not make this claim?

For free advice on working your way through the implications of the different EB-5 regional centers contact the partners at Which EB5

 
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EB-5 Regional Center compliance with USCIS regulations
March 23rd, 2010

uscisIn order to qualify under the EB-5 investment visa, you must invest with a regional center program that has had its application for designation as a regional center approved by USCIS.  Moreover, the regional center must maintain compliance with the regulations and guidelines of the EB-5 Immigrant Investor Pilot Program, or USCIS can strip the program of its regional center designation, and then those investors who have not yet removed the condition from permanent residence could potentially cease to qualify for conditional permanent residence.

In short, without the regional center designation, there is no permanent residence for the client and no regional center program for the entity that originally obtained the designation.

We understand from the recent meeting with the USCIS that more structured reporting by the regional centers can be expected soon. This may or may not lead to regional centers losing their designation. Feel free to contact us to discuss this important issue before you decide on a choice of regional center for your investment visa.

 
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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 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.