Last year set a new record for EB-5 investment. More than $1.25 billion was invested into American businesses in 2011 using the immigration investment program. Early visa statistics for 2012 suggest that investment amount may double this year.
However, the United States Citizenship & Immigration Services (USCIS), which oversees the program, reported that they denied 44% of applications for EB-5 Regional Center designation filed between 10/2010 and 12/2011. Similar trends are evident with respect to the adjudication of the individual I-526 visa petitions.
These statistics suggest that for those projects willing to properly prepare their business for EB-5 investment, EB-5 remains a valuable capital source.
So what are applicants doing wrong? In listing common reasons for denials and Requests for Evidence, USCIS has emphasized the importance of:
- Business plans
- Reasonable and supported economic analyses
- Investment structures that comply with EB-5 regulations
- Thorough source of funds analyses to verify investor capital comes from lawful sources
Helping businesses, attorneys, and developers learn the “do’s and don’ts” of these elements of EB-5 will be the subject of the next EB-5 Institute conference in Portland, Oregon on March 30 and 31, sponsored in part by NESF.
Access to EB-5 experts
EB-5 Institute seminars provide individuals with access to some of the nation’s most respected immigration attorneys, business plan writers, economists and business attorneys, as well as experienced Regional Center proprietors and tax credit professionals.
The idea is that prospective businesses and legal professionals get a more complete understanding of the process and common pitfalls through an EB-5 practicum with these experts will give.
As a bonus, we’ll discuss many of the interesting “lessons learned” from the two-day Invest in America EB-5 event held in Shanghai, China this past month.
For more information, please visit our website at www.eb5institute.com.
Joseph McCarthy, MS JD, is a Partner at McAdam & McCarthy, Principal at American Dream Fund, LLC, founder of EB-5 Institute, and guest blogger for NES Financial.