If a Regional Center wants to add a project which has a new industry code, not previously approved for the Regional Center by the USCIS, an amendment must be filed. Significant (“material”) changes to the operation of the Regional Center also require an amendment.
Unfortunately, the USCIS has not been very forthcoming in explaining what types of changes constitute a “material” one.
Recently we received approval by the USCIS for two amendments I prepared for a Regional Center. One involved increasing the number of investors in a previously approved project as well as expanding the territory of the Regional Center. The other amendment involved a large new project. They were filed about four months apart and were granted the same day.
Martin
Wednesday, October 5, 2011
Thursday, September 29, 2011
How Do I Start the EB-5 Process?
Our EB-5 team at Lawler & Lawler will guide you step by step.
• We will set up a call to review the rules and procedures as well as explain how the investment should be made.
• We will provide you a list of items to gather and go over it to meet your needs and situation.
• We will then work with you to document the source of funds.
• Meanwhile, you may conduct your due diligence on the investment and decide in which Regional Center or business in which you will invest.
• The investment will be made and we will gather project and financial documents from the Regional Center or business including proof the investment has been received. We will then assemble the I-526 petition and file it with the USCIS.
• We will regularly keep you appraised as we advance the application.
Martin
• We will set up a call to review the rules and procedures as well as explain how the investment should be made.
• We will provide you a list of items to gather and go over it to meet your needs and situation.
• We will then work with you to document the source of funds.
• Meanwhile, you may conduct your due diligence on the investment and decide in which Regional Center or business in which you will invest.
• The investment will be made and we will gather project and financial documents from the Regional Center or business including proof the investment has been received. We will then assemble the I-526 petition and file it with the USCIS.
• We will regularly keep you appraised as we advance the application.
Martin
Monday, September 19, 2011
EB-5 IIUSA Conference
I attended the IIUSA (Regional Center Trade Association) Conference in Seattle a few weeks ago. There was over 200 in attendance. There was a little interesting news including:
• The AILA EB-5 committee met with Alejandro Mayorkas. Premium processing (expediting case for a government fee) will be implemented in stages; the first being email questions by the USCIS' examiners to attorneys rather than a Request for Evidence (RFE). This started on September 1 (and is pretty useless). Otherwise when premium processing will begin remains unknown.
• The USCIS will not challenge a state's Targeted Employment Area (TEA) designation provided it does not contain a math error in calculating the unemployment rate and is not a gerrymandered district or used a totally unacceptable methodology. This is very good news and what I have been predicting based on the last USCIS stakeholder's call.
• The Economist Jeff Carr said many states have been intimidated by USCIS' reluctance to accept TEA letters and they are now more restrictive.
• The Canadian investor immigration program has so many applicants backed up (20,000) they have imposed a moratorium.
It was a good meeting for sharing ideas.
Martin
• The AILA EB-5 committee met with Alejandro Mayorkas. Premium processing (expediting case for a government fee) will be implemented in stages; the first being email questions by the USCIS' examiners to attorneys rather than a Request for Evidence (RFE). This started on September 1 (and is pretty useless). Otherwise when premium processing will begin remains unknown.
• The USCIS will not challenge a state's Targeted Employment Area (TEA) designation provided it does not contain a math error in calculating the unemployment rate and is not a gerrymandered district or used a totally unacceptable methodology. This is very good news and what I have been predicting based on the last USCIS stakeholder's call.
• The Economist Jeff Carr said many states have been intimidated by USCIS' reluctance to accept TEA letters and they are now more restrictive.
• The Canadian investor immigration program has so many applicants backed up (20,000) they have imposed a moratorium.
It was a good meeting for sharing ideas.
Martin
Wednesday, September 14, 2011
Is There Any News on When the USCIS Will Start Its EB-5 Expedite Service?
Recently, the Head of the USCIS said on an EB-5 stakeholder’s call that he is committed to rolling out the new expedite service called “Premium Processing.” He refused to give a timeframe, but he did say that the government did not have to submit the program for formal rule making (under the Administrative Procedures Act which can take months), which is good news.
More recently, the USCIS issued an unclear pronouncement that seemed to say premium processing would begin in 30 days. What it stated is that the program will start 30 days after the USCIS reviews the comments on the program and decides when to implement it. USCIS says it has started to email attorneys rather than issue Requests for Evidence (RFEs), but premium processing remains a goal and no start date can be predicted.
As soon as there is any news about the premium processing program I will notify all our clients and post a message on this blog and on my web page.
Martin
More recently, the USCIS issued an unclear pronouncement that seemed to say premium processing would begin in 30 days. What it stated is that the program will start 30 days after the USCIS reviews the comments on the program and decides when to implement it. USCIS says it has started to email attorneys rather than issue Requests for Evidence (RFEs), but premium processing remains a goal and no start date can be predicted.
As soon as there is any news about the premium processing program I will notify all our clients and post a message on this blog and on my web page.
Martin
Monday, July 4, 2011
Stages of an EB-5 Green Card
What are the stages of an EB-5 Green Card for a person investing from abroad?
The first stage is the filing of the EB-5 petition [Form I-526].
The second stage is processing the application at the National Visa Center [Form DS-230].
The third stage is the interview by the American Consul in the applicant’s home country after which the applicant is admitted to the U.S. as a “conditional” permanent resident for two years.
The fourth stage is to apply for removal of conditional resident status [Form I-829] and become a full permanent resident (green card holder).
We have easy to understand flow charts of the EB-5 process.
Martin Lawler
The first stage is the filing of the EB-5 petition [Form I-526].
The second stage is processing the application at the National Visa Center [Form DS-230].
The third stage is the interview by the American Consul in the applicant’s home country after which the applicant is admitted to the U.S. as a “conditional” permanent resident for two years.
The fourth stage is to apply for removal of conditional resident status [Form I-829] and become a full permanent resident (green card holder).
We have easy to understand flow charts of the EB-5 process.
Martin Lawler
EB-5 Equity vs. Loan Plan
Each EB-5 investor must make an equity investment in a Regional Center or business. The Regional Center or business may then either make an equity investment in a project or loan the capital to the project. What is the difference?
Many like the loan plan as there is a due date on the note and the time is set for return of the capital. The equity investment requires refinance or sale of the project or some other source of funds for return of the investor’s capital. Both investments must be “at risk,” which means the capital is subject to loss.
The investor should discuss the “exit strategy” with the Regional Center for when the capital may be returned.
Martin Lawler
Many like the loan plan as there is a due date on the note and the time is set for return of the capital. The equity investment requires refinance or sale of the project or some other source of funds for return of the investor’s capital. Both investments must be “at risk,” which means the capital is subject to loss.
The investor should discuss the “exit strategy” with the Regional Center for when the capital may be returned.
Martin Lawler
Use the Proper Visa or Else
The New York Times on June 22, 2011 reported the large Indian outsourcing company and labor contractor InfoSystems is being indicted for visa fraud. An employee has claimed workers were brought from India on B-1 [temporary work] visas but worked in the U.S. for which they should have had an H-1B visa for local work.
A word to the wise – use the proper visa. The government takes its restrictive rules very seriously. Feel free to consult with me about the type of visa for the service the employee will perform.
Martin Lawler
A word to the wise – use the proper visa. The government takes its restrictive rules very seriously. Feel free to consult with me about the type of visa for the service the employee will perform.
Martin Lawler
How Quickly Can an EB-5 Application be Filed?
We filed one in three weeks. It usually takes the applicant about one to two months to provide us all the documents needed to show the path of funds and the source of the investment comes from a legal source.
It is best to provide as many documents as possible. We work closely with our clients to document each application. We guide our clients and explain the type of evidence usually required, which varies with each case. One client received a gift from her father who earned the funds when he sold a ship, which involves a lot of paperwork.
We have well trained staff who advise our clients on the documents needed to prove each aspect of the case.
Martin Lawler
It is best to provide as many documents as possible. We work closely with our clients to document each application. We guide our clients and explain the type of evidence usually required, which varies with each case. One client received a gift from her father who earned the funds when he sold a ship, which involves a lot of paperwork.
We have well trained staff who advise our clients on the documents needed to prove each aspect of the case.
Martin Lawler
EB-5 Family Immigration
Can My Family Immigrate With Me?
Yes, provided the child(ren) are under age 21 when the first EB-5 petition is filed – the I-526. The Child Status Protection Act should freeze the child’s age. Thus, even if a child turns 21 after the I-526 is filed, they can still immigrate with the principal applicant.
Family dependents may immigrate with the principal applicant or later on following to join the investor. The dependents may not however immigrate first, unless they have their own EB-5 application which requires a separate petition.
Martin Lawler
Yes, provided the child(ren) are under age 21 when the first EB-5 petition is filed – the I-526. The Child Status Protection Act should freeze the child’s age. Thus, even if a child turns 21 after the I-526 is filed, they can still immigrate with the principal applicant.
Family dependents may immigrate with the principal applicant or later on following to join the investor. The dependents may not however immigrate first, unless they have their own EB-5 application which requires a separate petition.
Martin Lawler
EB-5 - Regional Center or Own Business
Should I Invest in a Regional Center or Create my Own Business?
Regional Center investments have many advantages. Here are a few:
• Regional Centers may count indirect employment creation as opposed to direct jobs at the project. This is often critical, such as for a shopping center or a hotel which may have many more indirect than direct jobs created.
• Regional Centers are run by someone else. It is difficult to operate a business upon arrival in the U.S. and some are not born entrepreneurs.
• As soon as the Regional Center investment is made the I-526 EB-5 petition can be filed as the funds are “at risk.” Those who create their own business must first spend a substantial portion of the capital. That can be hard to do when one is abroad without a trusted business manager.
• Often Regional Center projects have been pre-approved by USCIS as far as the business plan and job creation methodology is concerned.
I am pleased to discuss the other advantages of Regional Centers with investors.
Martin Lawler
Regional Center investments have many advantages. Here are a few:
• Regional Centers may count indirect employment creation as opposed to direct jobs at the project. This is often critical, such as for a shopping center or a hotel which may have many more indirect than direct jobs created.
• Regional Centers are run by someone else. It is difficult to operate a business upon arrival in the U.S. and some are not born entrepreneurs.
• As soon as the Regional Center investment is made the I-526 EB-5 petition can be filed as the funds are “at risk.” Those who create their own business must first spend a substantial portion of the capital. That can be hard to do when one is abroad without a trusted business manager.
• Often Regional Center projects have been pre-approved by USCIS as far as the business plan and job creation methodology is concerned.
I am pleased to discuss the other advantages of Regional Centers with investors.
Martin Lawler
Saturday, July 2, 2011
EB-5 Regional Centers
The EB-5 Regional Center (but not self) investor law expires on September 30, 2012. Extension is, however, expected. The law was first enacted in 1993 and has been extended many times.
At Congressional hearings when this law was last extended, no one spoke against it. It is one thing Democrats and Republicans can agree upon.
When the law was last extended, it happened just before expiration. USCIS expedited the cases and the Consuls quickly issued the EB-5 visas – some in a matter of days. Even if the statute is not extended, it appears that USCIS will continue to process I-829 Removal of Conditional Resident Status applications, but USCIS has never explained its policy, if the statute were to expire.
The Association to Invest In the USA (IIUSA), the EB-5 Regional Center trade association, is starting to lobby Congress for extension of the statute, which as I said, is expected to be extended but historically has not been extended until the last minute before expiration.
The EB-5 statute is creating thousands of jobs and funding many projects. Thus, it is expected the law will be extended.
Martin Lawler
At Congressional hearings when this law was last extended, no one spoke against it. It is one thing Democrats and Republicans can agree upon.
When the law was last extended, it happened just before expiration. USCIS expedited the cases and the Consuls quickly issued the EB-5 visas – some in a matter of days. Even if the statute is not extended, it appears that USCIS will continue to process I-829 Removal of Conditional Resident Status applications, but USCIS has never explained its policy, if the statute were to expire.
The Association to Invest In the USA (IIUSA), the EB-5 Regional Center trade association, is starting to lobby Congress for extension of the statute, which as I said, is expected to be extended but historically has not been extended until the last minute before expiration.
The EB-5 statute is creating thousands of jobs and funding many projects. Thus, it is expected the law will be extended.
Martin Lawler
Tuesday, May 31, 2011
Expediting EB-5 Investor Green Cards and Regional Center Applications
The USCIS announced a proposed new rule that will allow expediting many, but not all, EB-5 Investor Green Card petitions. The proposal also includes applications for Regional Center designation and their amendments for new projects.
The May 19, 2011 announcement only applies to investments involving a “shovel ready” project that is about to be constructed (as opposed to a hypothetical project).
Under the proposal (it is not yet in effect), one can pay a premium processing (expedite) fee, the amount of which is not yet announced by the USCIS, and have the application reviewed in a few weeks. The decision may be an approval, or a request for more evidence, or a notice of intent to deny the application.
Developers and financiers setting up Regional Centers will also be afforded the opportunity to have a telephone hearing to resolve questions the USCIS may have. The hearing will be before a board comprised of a USCIS officer and an economist assisted by a government attorney. The hearing is intended to quickly identify and resolve issues.
This is a breath of fresh air if the program is implemented and cases proceed timely. With most seeking the expedited processing the system may not run as smoothly as one would hope.
I will keep you posted on developments of this new procedure.
The May 19, 2011 announcement only applies to investments involving a “shovel ready” project that is about to be constructed (as opposed to a hypothetical project).
Under the proposal (it is not yet in effect), one can pay a premium processing (expedite) fee, the amount of which is not yet announced by the USCIS, and have the application reviewed in a few weeks. The decision may be an approval, or a request for more evidence, or a notice of intent to deny the application.
Developers and financiers setting up Regional Centers will also be afforded the opportunity to have a telephone hearing to resolve questions the USCIS may have. The hearing will be before a board comprised of a USCIS officer and an economist assisted by a government attorney. The hearing is intended to quickly identify and resolve issues.
This is a breath of fresh air if the program is implemented and cases proceed timely. With most seeking the expedited processing the system may not run as smoothly as one would hope.
I will keep you posted on developments of this new procedure.
Wednesday, February 2, 2011
USCIS EB-5 Call
A few times a year, the USCIS holds a call to address EB-5 legal and procedural issues. In the past, the calls have provided little new information and often our questions are not answered. Recently the USCIS held a call and provided some highly technical and more general information.
For example, the USCIS said, total EB-5 staffing at the California Service Center has substantially increased, and should ultimately reduce the current EB-5 case processing time of five months. We have seen such claims before and processing times are still slower than a few years ago.
• USCIS has begun gathering data about the number of applications filed for specific regional centers. The USCIS expects to begin releasing the data for publication later this year.
• USCIS clarified their policy on Office of Foreign Assets Control (OFAC) licenses, stating that a license would not be required of an Iranian national residing outside of Iran if the money is shown to be obtained through a lawful source and transferred to the U.S. without traveling through a prohibited Iranian bank. Previously USCIS issued Requests For Evidence (RFEs) requesting an OFAC license or an OFAC letter of no objection.
For example, the USCIS said, total EB-5 staffing at the California Service Center has substantially increased, and should ultimately reduce the current EB-5 case processing time of five months. We have seen such claims before and processing times are still slower than a few years ago.
• USCIS has begun gathering data about the number of applications filed for specific regional centers. The USCIS expects to begin releasing the data for publication later this year.
• USCIS clarified their policy on Office of Foreign Assets Control (OFAC) licenses, stating that a license would not be required of an Iranian national residing outside of Iran if the money is shown to be obtained through a lawful source and transferred to the U.S. without traveling through a prohibited Iranian bank. Previously USCIS issued Requests For Evidence (RFEs) requesting an OFAC license or an OFAC letter of no objection.
Wednesday, January 26, 2011
EB-5 Investor Green Cards
Source Versus Path of Funds
What is the difference between the “source” and path of funds?
We use these terms to prove that the funds belong to the investor and the funds were derived from legal activity.
Source. The funds must be shown to have been earned legally and not be drug or mafia profits. Documents include tax returns when available, company papers, wills, property sales records, bank savings documents, etc.
Path. We gather documents to show the transfer of the funds from the source to the investor to the investment (usually a Regional Center). We gather the bank wire transfer records. In some cases there is a gap in the chain from the source bank account to the investment. Sometimes, the funds go to an agent who helps send the funds out from certain countries such as China, Iran, Nigeria, and other countries with currency restrictions. So far, USCIS usually accepts the documents provided when agents are used.
We spend considerable time with our clients to assist with this aspect of the case.
Martin
What is the difference between the “source” and path of funds?
We use these terms to prove that the funds belong to the investor and the funds were derived from legal activity.
Source. The funds must be shown to have been earned legally and not be drug or mafia profits. Documents include tax returns when available, company papers, wills, property sales records, bank savings documents, etc.
Path. We gather documents to show the transfer of the funds from the source to the investor to the investment (usually a Regional Center). We gather the bank wire transfer records. In some cases there is a gap in the chain from the source bank account to the investment. Sometimes, the funds go to an agent who helps send the funds out from certain countries such as China, Iran, Nigeria, and other countries with currency restrictions. So far, USCIS usually accepts the documents provided when agents are used.
We spend considerable time with our clients to assist with this aspect of the case.
Martin
Thursday, January 20, 2011
Regional Center Set Up
Martin Lawler and his team of EB-5 expert lawyers advise developers on structuring of EB-5 Regional Centers; the necessary documents; timing; and advice on the Regional Center’s operation.
We have represented a number of developers to set up Regional Centers for investors to qualify for EB-5 investor green cards. Within four months of approval, one Regional Center has filed over 12 I-526 applications and has many more in the process of investing.
We are also helping set up seven more Regional Centers. We can recommend economists and business plan writers who quickly prepare the necessary documents.
In some cases, investors can invest in the Regional Center’s project directly and the investor’s EB-5 I-526 application filed before the Regional Center is approved by the USCIS. In other cases, investments can be made in the Regional Center while its designation application is pending with the USCIS, but the I-526 individual petition cannot be filed until the Regional Center application is granted.
Regional Centers are complex, expensive and time consuming projects. They involve constant marketing, government compliance, and locating and managing projects. They can be excellent means of raising capital. But they require a substantial commitment. Martin Lawler is pleased to discuss creating a Regional Center with interested developers and financiers.
We have represented a number of developers to set up Regional Centers for investors to qualify for EB-5 investor green cards. Within four months of approval, one Regional Center has filed over 12 I-526 applications and has many more in the process of investing.
We are also helping set up seven more Regional Centers. We can recommend economists and business plan writers who quickly prepare the necessary documents.
In some cases, investors can invest in the Regional Center’s project directly and the investor’s EB-5 I-526 application filed before the Regional Center is approved by the USCIS. In other cases, investments can be made in the Regional Center while its designation application is pending with the USCIS, but the I-526 individual petition cannot be filed until the Regional Center application is granted.
Regional Centers are complex, expensive and time consuming projects. They involve constant marketing, government compliance, and locating and managing projects. They can be excellent means of raising capital. But they require a substantial commitment. Martin Lawler is pleased to discuss creating a Regional Center with interested developers and financiers.
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