Concentrating EB-5 5 Investment Impact-Creating and Representing Regional Centers

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Gertrude Atkinson
6 years ago
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1 Concentrating EB-5 5 Investment Impact-Creating and Representing Regional Centers David M. Morris (DL), Washington, DC Robert C. Divine, Chattanooga, TN Linda W. Lau, South Pasadena, CA Stephen Yale-Loehr, Ithaca, NY 1. Criteria for Determining Whether EB-5 5 Capital is a Funding Source Project #1 (no regional center) Project #2 (approved RC) 1 Do you have (or need) an approved regional center??? 2 Inside USCIS approved geography/industry scope??? 3 Comprehensive business plan??? 4 How many jobs will be created? (Direct, Indirect)?? 5 Reasonable job creation timeline??? 6 Certainty of TEA designation??? 7 Can you satisfy priorities of stereotypical EB5 investor??? Flexibility to structure project to comply with unique?? 8 EB5 program rules? 9 Any funding/finance closing deadline??? 10 Marketing considerations??? 2. Form I-924 I and Obtaining Regional Center Designation Filing Fee: Form I-924 & $6,230 filing fee Application Considerations and Costs: Corporate (Costs?) Economist ($20,000 - $30,000?) Business Plan ($5,000 - $10,000?) Banking/Escrow ($5,000?) Securities Offering Documents ($20,000 - $30,000?) Financing (Costs?) MOU for RC Projects that are affiliated with the RC Source of Funds Review

2 2. Form I-924 I and Obtaining Regional Center Designation Continued One Sample Project Sample Immigration I-526 Legal Memo (Costs?) RC Officers RC Database (Costs?) TEA Marketing (Costs?) Hiring an immigration lawyer to serve as Quarterback to get you the new/amended regional center approved (Costs?) Time Considerations Are you patient? Expect to take 2 to 3 months to prepare your new RC application Expect USCIS to take about 6 months to review (before issuance of RFE) You cannot file I-526 petition with USCIS until RC approved No immigration prohibition to start marketing before designation, but market reality RC DESIGNATION ISSUED BY USCIS NOW WHAT? Start on your first real project Execute your marketing plan Find qualified overseas investors Be prepared for high competition overseas with other experienced RCs Meet your project's funding deadlines Manage all immigration compliance for RC and project Manage investor relations Worry about job creation and material change Setting Administrative Fee Balance: Fees to overseas agents vs. covering start-up/ongoing costs Finder s Fee Issue Other??

3 3. Form I-924A I and the Regional Center s Ongoing EB-5 5 Compliance Form I-924A, Supplement to Form I-924 New form went into effective November 2011 USCIS is attempting to collect data from regional centers on their activities. No filing fee Each approved RC is required to file the I-924A Must report RC-related activities for the preceding fiscal year within 90 days of the end of the fiscal year (on or before December 29 th of the calendar year in which the fiscal year ended.) USCIS Goals for Form I-924AI Publish an aggregation of the annual data issued by all regional centers, to include attributes of the RC-affiliated capital investments, such as: The geographic areas and industry categories receiving investment capital; The volume of regional center affiliated capital invested, and; The number of jobs created or maintained as a result of the capital investments. Question Can we expect reliable data about the success and failures of specific regional centers? Hot Topics 4. Pre-Approval for I-526 I Petitions (Including the Director s s Proposal) 1. What is value of project pre-approval for I-526? 2. Is the value of pre-approval worth the extra wait time and cost? A. Issues? B. Extra value to investor creating extra confidence for joining project? C. Extra value to RC to know USCIS has approved the documents and no RFE? D. Extra value to USCIS adjudicator that this project has been pre-approved?

4 USCIS Commentary USCIS Director 1. Comment in last stakeholder meeting: if your project receives pre-approval and you do not change any documents, USCIS should give deference and not re-adjudicate these documents 2. From HQ mouth to CSC ears? Why should USCIS like this concept? 1. Consistency in adjudications 2. Reduce adjudication time by removing major issues 3. Other factors? What is the new USCIS plan for Project pre-approval Director s s Proposal? 1. Create Intake Team/Review Board 2. When will it be available? 3. Recorded Hearing/Right to present evidence in person/via phone 4. Impact of decision? 5. Ability to file Premium Processing for I-924 and/or I-526? 6. Best Practices to Prepare for I-829 I Petitions Think about material change before filing I-526: Finding Balance Sufficient Specificity for USCIS vs. Flexibility for Change in Project Think about job creation before filing I-526: Job cushion Selecting an economic model Expenditure/Sending vs. Direct Effects Construction jobs: Direct, Direct as Indirect, Indirect/Induced Think about data tracking before filing I-526 Collecting the data needed for the I-924A Create a database for all investors to capture/report information

5 Questions & Answers

Form I-924, Application for Regional Center under the Immigrant Investor Pilot Program

Form I-924, Application for Regional Center under the Immigrant Investor Pilot Program U.S. Citizenship and Immigration Services Immigrant Investor Program Washington, DC 20529 February 26, 2014 Sean Runnels 74040 Hwy 111, #210 Palm Desert, CA 92260 Application: Applicant(s): Form I-924,