The Changing Face of the US Immigrant Investment Visa (EB-5)

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1 The Changing Face of the US Immigrant Investment Visa (EB-5) by Mona Shah, Esq. GA JAH ANNUAL REPORT 2015 #

Fact #1 It allows a person and his or her immediate family to obtain a Green Card by investing in an enterprise that creates jobs for qualifying US workers. What is the EB-5 Program?

2 Fact #1 It allows a person and his or her immediate family to obtain a Green Card by investing in an enterprise that creates jobs for qualifying US workers. What is the EB-5 Program? Fact #2 For rural or high unemployment areas, the minimum investment is 500,000 USD Fact #3 Congress created the EB-5 Program in The EB-5 investment visa route avoids the usual 1990 to benefit the US Economy by requirement of having family connections, securing attracting investments from qualified a job or running an actively traded business. foreign investors. Fact #4 Under each program, each investor must prove that at least 10 new jobs were created or saved as a result of the investment. 2

3 What is the EB-5 Program? More than 25 countries, including Australia, Portugal, Spain and the United Kingdom have similar programs. However, the American program, even though it is the cheapest, also requires substantial risk and is thus more stringent than others. 3

4 Types of EB-5 Projects For pooled investment Regional Center programs, EB-5 policy (Passive Investment) management requirement can REGIONAL CENTER be minimal for those not interested in day-to-day management of an active business POOLED DIRECT For non-pooled projects, the investment may consist of the contribution of various forms of capital, including cash, Pooled Direct (Passive Investment) ENTREPRENEURIAL DIRECT Entrepreneurial Direct (Not Passive Investment) equipment, inventory, property and other tangible equivalents Mona Shah & Associates 4

5 Choosing an EB-5 Project Since the capital investment is expected to be Fact #1 at risk, the choice of project is critical. Investors have traditionally favored real estate related At this time, there are hundreds of EB-5 projects. projects on the market. It is often very difficult for an investor to choose one Fact #2 However, not all real estate projects are viable, and many times, large real estate projects EB-5 capital is a unique alternative to traditional sources of funding. have been hampered by construction delays. 5

industry in the entire United States is a $650 New York City alone is a

6 Choosing an EB-5 Project An Alternative: The Transportation Industry NYC Nationwide Transportation Trucking Transportation around The trucking industry in the entire United States is a $650 New York City alone is a billion industry. $40 billion industry. 97% of all trucking companies own less than 20 trucks. 6

Differences Between Direct and Regional Center Projects 1 2 3 Investors in direct projects make an In direct petitions, only direct jobs are In regional center-based investments, investment into a

7 Differences Between Direct and Regional Center Projects Investors in direct projects make an In direct petitions, only direct jobs are In regional center-based investments, investment into a new to existing counted unlike a regional center. The the number of jobs created is usually business venture in the United States most important advantage of investing almost 3x greater than those created by and can do so individually or with other through a regional center is that stand-alone investments. USCIS must investors. indirect and induced jobs are counted accept the econometric model used for towards the job creation requirement. the jobs to be counted. The most important difference is how the jobs created are counted by United States Citizenship and Immigration Service (USCIS) 7 It is not, as is often misunderstood, the amount of money invested.

Upcoming Changes to the EB-5 Program Upcoming Changes in Upcoming Changes in the Upcoming Changes in the Security for Investors

proposals to change the program, focused on integrity (The Integrity Bill) projects are at the $500,000 level, even included raising

8 Upcoming Changes to the EB-5 Program Upcoming Changes in Upcoming Changes in the Upcoming Changes in the Security for Investors Investment Amount Investment Amount Congress is determined to pass legislation Most regional center and direct pooled Last year, proposals to change the program, focused on integrity (The Integrity Bill) projects are at the $500,000 level, even included raising the minimum amount from those located in bustling cities such as $500,000 to 800,000, with most projects USCIS and SEC have increased scrutiny, Manhattan. announcing mandatory site visits and audits of how the investor s money is spent 8 This is due to a loophole in the law falling out of TEA designation and requiring a $1 million investment The program was extended unchanged, but the amount is set to rise this year.

9 Advantages of EB-5 Includes Family Sponsorship The EB-5 Program allows a person and his or her immediate family members to obtain a Green Card (live permanently in the US)! $ Cheapest Investment Program The EB-5 Program is the cheapest amongst similar programs around the world. No Language or Minimum Education Requirement A typical requirement amongst other similar programs " % No Business or Management Experience Requirement The EB-5 Program is flexible. No Quota Backlogs Except for applicants from Mainland China. There are backlogs for many employment and family-based Green Card categories, but not EB-5 # & No Sponsor Needed Foreign Investors use their own personal funds and do not require sponsorship from an employer or family member 9

10 About Mona Shah and Associates Extensive experience in EB-5 financing and 47 years collectively in immigration practice An original founder of the first EB-5 Regional Center in New York City (NYCRC) and also founded New York Immigration Fund Helped raise millions for various EB-5 Projects Experienced in real estate projects and project formation MSA s Securities Team stays abreast of the latest changes in laws relating to EB-5 private offerings 10

11 Why Clients Choose MSA Established in 1997 by Mona Shah, MSA is an internationally focused law firm with an immigration p r a c t i c e a n d s p e c i a l t i e s i n Corporate and US Securities and Exchange Commission Law Highly regarded in the EB-5 field, MSA has extensive experience in the area and has been instrumental in the success of countless projects 01 Extensive experience in EB-5 financing and immigration law. 02 Voted Top 25 EB-5 Attorneys 3 years in a row 03 Pioneers in the area, with numerous books, articles, interviews and podcasts 04 A global presence with offices and affiliates around the world. 11

12 At MSA, we are careful in our work, and we only introduce reputable projects that are safe and meet USCIS deadlines. GA JAH ANNUAL REPORT 2015 #

13 FEATURED PROJECT Approved by USCIS NuRide Transportation Group A NYC-based transportation project combining different elements of the New York transportation industry

USA Investment Visa Programmes

USA Investment Visa Programmes US investment programmes EB-5 investment visas The EB-5 Visa Programme allows a person and his or her immediate family to obtain a Green Card (live permanently in the USA)