UNITED STATES OF AMERICA EB-5 IMMIGRANT INVESTOR PROGRAM EB-5 INVEST WISELY. IMMIGRATE EASILY. 1
WHO WE ARE? Chicagoland Foreign Investment Group, LLC (CFIG) is a designated United States Citizenship and Immigration Services (USCIS) Regional Center. 2
WHO WE ARE? Geographic Scope includes the entire States of: Illinois Indiana Michigan Minnesota Wisconsin CFIG is a USCIS designated EB-5 Regional Center in the following industries: Accommodation Agriculture Education Health Care Manufacturing Healthcare and Social Assistance Arts, Entertainment, and Recreation Transportation Retail Trade Utilities Information Professional and Technical Services Wholesale Trade 3
WHO WE ARE? CFIG has significant experience and a proven track record of success in immigration, primarily focusing on EB-5 Visa Global affiliate office locations in: Chicago USA (Headquarters) Dubai UAE Manama Bahrain Amman Jordan Toronto Canada Panama City Panama 4
UNITED STATES IMMIGRATION LOTTERY ASYLUM FAMILY MARRIAGE EMPLOYMENT 5
EMPLOYMENT BASED IMMIGRATION EMPLOYEE EMPLOYER 6
EMPLOYMENT BASED IMMIGRATION EMPLOYEE EMPLOYER EB-1 EB-2 EB-3 EB-4 EB-5 7
EMPLOYMENT BASED PREFERENCE 5 INVESTMENT CREATE JOBS GREEN CARD 8
EB-5 HISTORY 1990 DIRECT INVESTMENT ANYWHERE: USD $1,000,000 TEA: USD $500,000 ENTIRE AMOUNT AT RISK 10 DIRECT JOBS MORE ACTIVE 1992 REGIONAL CENTERS ANYWHERE: USD $1,000,000 TEA: USD $500,000 ENTIRE AMOUNT AT RISK 10 DIRECT, INDIRECT, AND INDUCED JOBS LESS ACTIVE 9
WHAT IS EB-5 EB-5 Visa available under the Immigrant Investor Program Created by the Immigration Act of 1990 Method for foreign nationals to obtain a U.S. Green Card Through capital investment in a U.S. business Makes 10,000 U.S. Green Cards available for immigrant investors 3,000 of which are set aside for investments through Regional Centers Minimum of $1,000,000 USD (or $500,000 USD in a Targeted Employment Area) Creating or preserving at least 10 jobs for U.S. workers 10
WHAT IS A REGIONAL CENTER The EB-5 Pilot Program began in 1992 and created Regional Center designations. A USCIS designated Regional Center is any economic entity, public or private, dedicated to the promotion of economic growth, improved regional productivity, job creation, and increased domestic capital investment of a region. EB-5 Regional Center projects must meet the requirements regulated by the United States Citizenship and Immigration Services (USCIS). 11
WHAT IS A TEA? A Targeted Employment Area (TEA) is any city, county, census tract or other geographical area accepted by the USCIS that has an unemployment rate over 150% of the national average rate. A TEA may also consist of a rural area. A rural area is an area outside a metropolitan statistical area or outer boundary of any city or town having a population of 20,000 or more. 12
EB-5 OPTIONS EB-5 DIRECT EB-5 REGIONAL CENTER EB-5 TEA NON-TEA TEA NON-TEA $500K $1M $500K $1M 13
EB-5 OPTIONS DIRECT EB-5 $500K OR $1M INVESTOR FULLY RESPONSIBLE EQUITY BASED SHAREHOLDER DIRECT JOBS MORE ACTIVE EXPERIENCE SAME LOCATION REGIONAL CENTER EB-5 $500K or $1M REGIONAL CENTER PROJECT EQUIRTY OR LOAN BASED PROJECT MEMBER DIRECT/INDIRECT/INDUCED LESS ACTIVE NO EXPERIENCE ANY LOCATION 14
REGIONAL CENTER EB-5 B3 B5 B4 B6 EB-5 PROJECT B1 DIRECT JOBS Direct employees of the job creating enterprise INDIRECT JOBS B7 B2 B8 B9 B10 B11 Jobs created outside the commercial enterprise such as suppliers that support the actual investment project INDUCED JOBS Job created due to the economic impact made by the commercial enterprise 15
EB-5 ELIGIBILITY NO LANGUAGE REQUIRED NO EDUCATION REQUIRED NO EXPERIENCE REQUIRED NO AGE RESTRICTION 16
EB-5 ELIGIBILITY INVESTMENT SOURCE OF FUNDS 17
EB-5 APPLICANTS APPLICANT SPOUSE PRIMARY APPLICANT UNMARRIED CHILDREN UNDER AGE OF 21 18
EB-5 CHILDREN AGE APPLICATION USCIS U.S. EMBASSY LOCKS AGE LOCKS AGE 19
WHY EB-5? Direct route to permanent residency in the U.S. for the investor, spouse, and all unmarried children under the age of 21 Freedom to live, work, and retire anywhere in the U.S. Investor and his/her spouse and children may attend college or university at U.S. resident costs Travel to and from the United States without another visa Route to U.S. citizenship after 5 years of permanent residency Ability for Investor to sponsor Green Cards for family members 20
REDUCED UNIVERSITY TUITION School Name In-State Resident Tuition Per Year* International Student Tuition Per Year** Potential Tuition Savings Over 4 Years*** University of Wisconsin-Madison $16,626 $46,126 $118,000 University of Virginia $9,870 $31,870 $88,000 University of California-Berkeley $10,333 $33,050 $90,868 University of Michigan $5,735 $17,374 $46,556 *Tuition rates for permanent residents living in the same state **Tuition rates found via schools public websites, March, 2010 ***Average savings: $85,856 not including additional visa and legal fees for international students. 21
WHY CFIG? First designated Regional Center in Chicago 98% approval rate for investors for the past 2 years We back our investments by real estate collateral Commitment of over $100million dollars in EB-5 funding Provided funding for over 9 assisted living & memory care EB-5 projects We use industries that are job-creating-based by nature We define a clear exit strategy for our investors from the first day through HUD LEAN 232 Program Investors are given additional protection as they are first or second lienholders of the EB-5 projects 22
DEBT-STRUCTURED INVESTMENT CFIG attempts to structure each EB-5 investment with 40% debt (traditional financing) and 60% debt (EB-5 financing) $20 million project value $12 million from EB-5 investors $8 million from reputable bank or other financial institution EB-5 investors are allowed to calculate jobs created by the bank s investment in the project to support their immigration applications 23
EB-5 CAPITAL INVESTMENT In order to qualify for approval of a Form I-526, an applicant investing in a new commercial enterprise needs to demonstrate that he or she has or is actively in the process of investing a minimum of $500,000.00 (8 C.F.R. 204.6(g)) 24
EB-5 SPLIT PAYMENT (FOR CITIZENS OF CERTAIN COUNTRIES) For purposes of obtaining approval for a Form I-526, an EB-5 investor need only demonstrate that he or she has started the process of investing CFIG has a number of cases in which EB-5 investors participating in new commercial enterprise projects sponsored by CFIG have invested a total of $100,000.00 at the time of filing the Form I-526 These investors have received USCIS approval of their respective I-526s upon depositing the remaining $400,000.00 at such time as USCIS issues a request for evidence (RFE) 25
PREFERRED EXIT STRATEGY U.S. FEDERAL PROGRAM HUD LEAN 232 CFIG takes very seriously our responsibility to return the principal investment back to our clients, which is why we will use HUD Section 232 mortgage installment program ( HUD 232 Program ). The purpose of the HUD 232 Program is to finance the purchase, refinance, new construction or substantial rehabilitation of nursing homes, assisted living facilities and other senior living facilities. The HUD 232 Program provides long-term, fixed-rate mortgage insurance for the financing or refinancing of existing healthcare projects, such as assisted living facilities, insuring lenders against losses on mortgage defaults. 26
PREFERRED EXIT STRATEGY U.S. FEDERAL PROGRAM HUD LEAN 232 While HUD does not actually loan any money to a facility, it serves as a credit enhancer by acting as a loan guarantor, which provides the underlying FHA-approved lender with security for repayment of the debt in case of a default by the borrower from resources beyond those of the borrower. After 5 years, each CFIG-sponsored project may be eligible to refinance its assisted living and memory care centers through the HUD 232 Program. By refinancing based on the true valuation of each project, we expect to replace all EB-5 investment with a loan through the HUD 232 Program, thus repaying the principal investment back to our EB-5 investors. The HUD 232 Program provides CFIG with the security to offer its investors a clear plan for the return of their investment, while also enabling each CFIG-sponsored project obtain affordable financing and refinancing of healthcare facilities nationwide. HUD 232 may refinance up to 80% of total valuation of the project. INVESTORS MUST UNDERSTAND THAT THEIR INVESTMENT IS STILL AT RISK. 27
ASSISTED LIVING FACILITIES Senior assisted living facilities have evolved considerably since they were first developed in the 1980s, largely in response to seniors and their families rejecting the often unnecessary, institutional setting of nursing homes. Since 1981, an estimated 40,000+ assisted living communities have been developed nationwide. Housing with health care and hospitality is the hallmark of today s senior assisted living communities. Services have become increasingly individualized and medical care provided onsite ranges from medication administration to specialized care for Alzheimer s residents. Our programs range from weekly card games to senior exercise offerings, entertainment and shopping outings and higher education courses brought onsite by local community colleges. We strive to create engagement, meaning, wonder and purpose in our communities as we believe our parents, grandparents and aging loved ones deserve the best services and amenities. 28
ASSISTED LIVING FACILITIES Our assisted living communities are living, breathing, interdependent extended family systems. Beyond care and hospitality, residents experience the give and take of home life; individuals homes are set within neighborhoods, each with a distinct culture developed according to the values and preferences of those who reside within them. Being a part of our community includes accepting the responsibilities, benefits and expectations of personal engagement. There is intrinsic value in contributing to the care of one s self and of others. Residents and care team partners make a commitment to the health and culture of the community, a dynamic, ever evolving living environment as its member change over time. 29
EXAMPLE MEMORY CARE EB-5 PROJECT CFIG s Memory Care Projects are formed for the purpose of developing and operating assisted living facilities for elderly patients, with a focus on providing care for patients with Alzheimer s and other memory-related illnesses 30
EXAMPLE MEMORY CARE EB-5 PROJECT Project Breakdown (Total Investment: $25,000,000.00) U.S. Lender (Bank Loan): $10,000,000.00 EB-5 Investment (Second Loan): $15,000,000.00 Number of Facility Units:114 units (64 assisted living, 50 memory care) Number of Jobs: 320 (50 FTE at operational stabilization) Project Locations: Naples, Florida Minimum Investment Per Investor: $500,000.00 Investment Period: 5 years Rate of Return: 0.5% APR Return of $500,000.00 to the Investors: after 5 years through clear and defined options such as the U.S. HUD 232 Program 31
EXAMPLE MEMORY CARE EB-5 PROJECT EB-5 INVESTORS INVESTOR HOLDING ACCOUNT When approved $25M Project $15M EB-5 $10M Bank $500K/Investor 30 Investors INVESTORS COMPANY PROJECT FINANCIAL INSTITUTION $15M loan $10M loan DISPERSE $500,000 TO INVESTORS RETURN OF CAPITAL 32
EB-5 IMMIGRATION PROCESS REGIONAL CENTER INVESTOR HOLDING ACCOUNT NEW COMMERCIAL ENTERPRISE PROJECT MANAGEMENT COMPANY LAW FIRM I-526 CONDITIONAL GREEN CARD I-829 PERMANENT GREEN CARD 33 12-24 MONTHS (ESTIMATE AS OF JULY 2014)
EB-5 IMMIGRATION PROCESS SIGN SERVICE AGREEMENT PAY RC & LF FEES DOCUMENT PREPERATION SEND $100,000 I-526 1 MONTH 1-3 MONTHS EB-5 VISA U.S. EMBASSY USCIS APPROVAL SEND $400,000 RFE 1 DAY- 9 MONTHS 1-12 MONTHS 4-6 MONTHS 1 MONTH 12-13 MONTHS ARRIVE IN U.S. CONDITIONAL GREEN CARD I-829 PERMANENT GREEN CARD 34 1-6 MONTHS 1 MONTH 21-24 MONTHS 8-9 MONTHS
EB-5 APPLICATION STATISTICS 2005-2014 I-526 Statistics I-829 Statistics Fiscal Year Receipts Approvals Denials Approval % 2005 332 179 156 53% 2006 486 336 124 73% 2007 776 473 148 76% 2008 1,258 642 120 84% 2009 1,031 1,262 208 86% 2010 1,953 1,369 165 89% 2011 3,805 1,571 372 81% 2012 6,041 3,677 975 79% 2013 6,346 3,699 943 80% 2014 (Q1) 2,143 1,453 811 64% 2014 (Q2) 2,540 1,429 257 85% Grand Total 26,711 16,090 4,279 79% Fiscal Year Receipts Approvals Denials Approval % 2005 37 184 112 62% 2006 89 106 108 50% 2007 194 111 49 69% 2008 391 161 69 70% 2009 437 350 57 86% 2010 768 274 56 83% 2011 2,345 1,067 46 96% 2012 712 736 60 93% 2013 1,217 844 44 95% 2014 (Q1) 370 159 43 79% 2014 (Q2) 502 297 75 80% Grand Total 7,062 4,289 719 86% ** Source: Department of Homeland Security, U.S. Citizenship and Immigration Services, Performance Analysis System (PAS), March 2014 35
CFIG PARTNER ECOSYSTEM Comprised of strategic partners, field representatives, and agents, this Ecosystem of experts represents one of the most vibrant EB-5 global networks in Asia, Middle East, Europe, North America, and South America. At CFIG, we believe interdependence and collaboration is critical to providing customers access to the most reliable investment and immigration services available in the market. Together with our partners, CFIG develops, markets, and services pioneering EB-5 projects that customers and depend on. The concept is simple: more partners working with our EB-5 projects results in more success stories and more satisfied customers. 36
GROW YOUR BUSSINESS WITH EB-5 Partner with CFIG, an industry leader in EB-5, and increase your revenue opportunities in delivering investment based immigration opportunities. We have put together a comprehensive EB-5 partner program aimed at equipping your firm with what it takes to bring in new immigration business and help your customers build a new life in the United States of America. Our partners are central to our growth strategy and success. Our investment in our partners businesses ensures that all our sales, marketing, and legal teams are fully aligned for mutual success. 37
PARTNERSHIP BENEFITS Dedicated Partner Account Manager (PAM) Partner Jumpstart Program Partner seminars and conferences Sales and marketing support Joint selling & promoting Ongoing EB-5 training Service delivery enablement 38
WHY PARTNER WITH CFIG? Reliable EB-5 Projects Deliver proven EB-5 services that earn high margins and grow your business Gain competitive advantage by partnering with a leader in the rapidly growing EB-5 market Go to market with reliable and well structured EB-5 projects Gain Expertise through our Jumpstart Program Acquire the EB-5 knowledge you need to successfully promote, sell, and service EB-5 Influence sales cycles using our high-impact marketing and sales tools Accelerate adoption of EB-5 through CFIG s EB-5 customer awareness programs Gain expertise through access to up to date collateral and continuous education events 39
INVEST TODAY AND BUILD A BRIGHT FUTURE FOR YOU AND YOUR FAMILY IN THE UNITED STATES OF AMERICA WWW.CHICAGOEB5.COM 40
DISCLAIMER CHICAGOLAND FOREIGN INVESTMENT GROUP REGIONAL CENTER, LLC ( CFIG ) IS A UNITED STATES CITIZENSHIP AND IMMIGRATION SERVICES DESIGNATED REGIONAL CENTER. THIS BROCHURE IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO PURCHASE ANY INTERESTS IN ANY SPECIFIC PROJECTS. CFIG, American Enterprise Pioneers, Inc. ( AEP ), AND THEIR AFFILIATES DO NOT PROVIDE ACCOUNTING, TAX OR LEGAL ADVICE; ALL PERSONS ARE STRONGLY URGED TO CONSULT WITH THEIR OWN ADVISORS REGARDING ANY POTENTIAL STRATEGY OR INVESTMENT. THIS OVERVIEW IS CONFIDENTIAL AND MAY NOT BE REPRODUCED OR TRANSFERRED, IN WHOLE OR IN PART, TO ANY OTHER PARTY WITHOUT THE EXPRESS WRITTEN CONSENT OF CFIG, AEP, AND THEIR AFFILIATES. REAL ESTATE AND ASSISTED LIVING AND MEMORY CARE FACILITY INVESTMENTS ARE SPECULATIVE AND MAY RESULT IN THE LOSS OF AN INVESTOR S ENTIRE INVESTMENT. THE INFORMATION CONTAINED HEREIN INCLUDES ( OR IS BASED IN PART ON) VALUATIONS, ESTIMATES AND OTHER FINANCIAL DATA. BY YOUR RECEIPT OF THESE OVERVIEW MATERIALS, YOU UNDERSTAND, ACKNOWLEDGE AND AGREE THAT (I) YOU HAVE SUCH KNOWLEDGE AND EXPERIENCE IN FINANCIAL, BUSINESS AND INVESTMENT MATTERS SO AS TO BE CAPABLE OF EVALUATING THE MERITS AND RISKS OF AN INVESTMENT, (II) THIS INFORMATION HAS BEEN PREPARED INTERNALLY AND IT HAS NOT BEEN VERIFIED OR SUBSTANTIATED BY ANY THIRD PARTY SOURCE AND MAY NOT CONTAIN ALL OF THE INFORMATION WHICH YOU MIGHT DEEM MATERIAL, AND (III) THIS INFORMATION SHOULD NOT BE RELIED UPON FOR ANY PURPOSE, AND YOU WILL MAKE YOUR OWN INDEPENDENT EVALUATION OF ANY INFORMATION CONTAINED IN THIS OVERVIEW. ANY INFORMATION REGARDING VALUES ARE ESTIMATES ONLY AND SHOULD NOT BE CONSIDERED INDICATIVE OF THE ACTUAL FINANCIAL RESULTS THAT MAY BE REALIZED ON ANY POSSIBLE FUTURE INVESTMENT MENTIONED IN THIS OVERVIEW. THE INFORMATION CONTAINED HEREIN SHOULD NOT BE CONSTRUED AS RESEARCH OR INVESTMENT ADVICE. NO INFORMATION HEREIN SHOULD BE CONSIDERED A RECOMMENDATION TO PURCHASE OR SELL INTERESTS IN AN INVESTMENT. NO WARRANTY IS GIVEN AS TO ITS COMPLETENESS OR ACCURACY OF THE INFORMATION CONTAINED HEREIN, AND VIEWS AND OPINIONS, WHILST GIVEN IN GOOD FAITH, ARE SUBJECT TO CHANGE WITHOUT NOTICE. 41