Industry Insights

Redeployment Raises Questions and Increases Litigation Risks to EB-5 Sponsors

Read the article Two years after USCIS last published changes to their Policy Manual regarding EB-5 fund redeployment requirements, many questions still remain unanswered, and EB-5 issuers have largely been left to navigate the redeployment space on a “best efforts” basis. But this doesn’t always work out — in fact, in the last two [...]

At Risk, Debt Arrangement, Guaranteed Redemption: Important Distinctions [Article]

Read the article Commonly, USCIS challenges to EB-5 petitions may allege an investment is not eligible because it either (a) is not held “at risk,” (b) constitutes a “debt arrangement,” or (c) will result in a “guaranteed redemption.” However, though these terms differ substantially, the distinctions are poorly understood by many EB-5 professionals — [...]

Upping the Ante: Higher Standards for Success in EB-5 [Article]

Read the article   The EB-5 marketplace continues to evolve, and USCIS’s standards along with it. In recent years, a number of unofficial “rule” changes have trickled down to regional centers and projects, mostly by way of increased enforcement action. In this month’s featured article, Phil Cohen (founder of consulting firm Strategic Element, Inc.) [...]

The Importance of a Regional Center Operational Plan

Read the article According to Form I-924 instructions for regional center designation, an application must include a business plan for how the principals of the regional center anticipate they will manage and operate the regional center once approved. In recent years, USCIS has begun to scrutinize this business plan — also called an “operational [...]

The Future of EB-5 Fundraising [Article]

Read the article   Now that China’s EB-5 visa backlog has stretched well into the 2030s, the powerful Chinese visa agents — who once controlled the flow of information to the majority of the industry’s investors — have largely gone away. Who, or what, will replace them? In this week’s featured article, Kurt Reuss, [...]

How EB-5 Capital Is and Can Be Used [Article]

Read the article   The EB-5 visa was originally intended to spur job creation in the manufacturing industry — in fact, a 2003 ruling said that real estate construction jobs couldn’t count toward the job creation figures required under the program. How, then, has real estate development come to dominate the use of EB-5 [...]

2019-02-28T21:08:12+00:00February 28th, 2019|Categories: BLOG, EB-5, Industry Insights|Tags: , , , , |

Avoiding Time Delays in EB-5 [Article]

Read the article   Compared to other Citizenship/Residency by Investment programs globally, the EB-5 visa isn’t structured very attractively. For one, it’s more expensive than most countries’ programs (which average about $350,000 USD). The majority of other countries also do not require proof of job creation, and the investment can be made directly into [...]

2019-02-12T02:13:11+00:00February 13th, 2019|Categories: BLOG, EB-5, Industry Insights|Tags: , , , , |

EB-5 Reform: Failure Is Not an Option!

Read the article The EB-5 industry is currently more than three years into a destabilizing period of recurring short-term program reauthorizations. As we start 2019, Medallion Partner Jeff Carr offers his reflections on the state of an industry in limbo, and the possible solutions that may come — calling for legislators and EB-5 stakeholders [...]

12 Steps in EB-5 Due Diligence (Article)

Read the article EB-5 petitioners may differ in many respects, but they all share the same basic goals when they decide to make an investment: 1) They want to obtain permanent green cards for themselves and their eligible family members, and 2) they want their investment capital preserved and returned as soon as allowed [...]

Fiduciary Duty in EB-5 Capital Redeployment

Read the article As wait times for Chinese-born EB-5 investors surpass the average length of EB-5 development projects, the need to “redeploy” their capital into secondary projects (to maintain the required “at risk” status of the funds) has become a challenging industry reality. An estimated $17 billion in EB-5 capital will require redeployment over [...]

2019-07-30T20:02:28+00:00September 10th, 2018|Categories: BLOG, EB-5, Industry Insights|Tags: , , , , |