Jul 192012
 

If the EB-5 regional center pilot program is not extended by September 30, 2012, pending regional center applications and individual EB-5 applications could be severely impacted.  The following bullet points are meant to outline the impact that a sunset of the program would have on both pending I–924, Applications for Regional Center Designation and amendments as well as on I-526, Immigrant Petitions filed by Alien Entrepreneurs.

I-924 Applications: 

  • New applications for initial regional center designation will not be accepted beyond the date of the Pilot Program’s sunset.
  • Amendments to existing regional center designations requesting additions or changes to industry or NAICS codes, change in geographic scope, changes in economic methodology will not be accepted.
  • Those applications that are currently under review by USCIS will be held for an indeterminate period of time pending further action by Congress to renew the program.

I-526 Applications:

  • Pending EB-5 applicants could no longer benefit from indirect or induced job creation.
  • To be approved, the I-526 petition would need to include evidence that the project resulted in the creation of ten DIRECT jobs per investor.  The jobs would need to last two years or more to be considered permanent and would need to be full-time i.e. 35 hours per week or more.  At the I-829 stage, the applicant would need to prove that these jobs were held by qualified U.S. workers which includes: U.S. citizens, lawful permanent residents, refugees, asylees or persons granted cancellation of deportation from the U.S.  USCIS would either render decision on evidence already submitted to the Service with the initial application or through the issuance of a Request for Evidence (RFE) requesting documentation of direct job creation.
  • USCIS defines direct jobs as those created by the new commercial enterprise.  Presumably, jobs created by the project company, thought they are defined as direct jobs by economists, would be disallowed under EB-5 program standards.  This in effect would render the debt or equity model from EB-5 Investment Vehicle or Fund (“New Commercial Enterprise”) to Project (“Job Creating Enterprise”) obsolete.  Instead, the new commercial enterprise would need to be the project company and create direct jobs to create qualifying jobs.  This would make the program less attractive to many companies who would not want foreign investors to be directly involved in the project company.
  • All I-526 petitions received prior to the expiration of the program will be held in abeyance absent action by Congress.

We have received reports that many agents abroad, particularly in China, are communicating to investors that they must file their application prior to September 30th to qualify for the EB-5.  The same advice is being given to projects and regional center applicants.  Unfortunately, based on guidance issued by USCIS in 2009 at the time of the previous sunset, the only way that applicants could qualify would be as described above.

Source: EB5Investors (K.K.)

Jul 122012
 

USA has been a preferred destination country for many immigrants from India. In the past, many Indians especially from the States of Punjab, Maharashtra, Gujrat, Haryana, Rajasthan, Delhi have successfully immigrated to USA and are now U.S. Citizens, living a life they always dreamt of for their family & themselves.

Eligible immigrants have various options in which one can legally immigrate, live, work and retire in USA; and Employment Based Fifth Preference (EB-5) is one of the fastest & easiest way to secure U.S. Green Card for the whole family, usually within a timeframe of 6-12 months.

As of May 2012, there are 224 Regional Centers (RC) in USA which are undertaking EB-5 based investment projects. We at Law Offices of RKNA with an experience of more than 15 years, having a dedicated network of EB-5 Research Team, Lawyers and Economists in USA, can help you choose the best of the lot EB-5 programs, offering better Principal Protection, Return on Investment, and ease of Green Card Application & Approval and Exit Routes (principal payback after 5 years lock-in).

To know your Eligibility to invest in EB-5 Program and secure a U.S. Green Card for your family and yourself, please fill the free Investor Evaluation Form online below, we will get back to you with best options suiting your eligibility criteria and needs.

Investor Accreditation Evaluation

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Jun 132012
 

AMONG the most popular tools for attracting foreign investment to the United States is the EB-5 program. It seems like the perfect win-win: any foreigner who invests between $500,000 and $1 million here, and creates at least 10 domestic jobs from that investment within two years, gets a green card.

Given how many high-worth investors are clamoring to enter the United States, the program could have a significant effect on American unemployment. Indeed, it has brought in some $1 billion over the last fiscal year, and the President’s Council on Jobs and Competitiveness has called for the program to be radically expanded over the next few years.

Unfortunately, the program is so rife with fraud and corruption that it could actually have the opposite impact and deter investment. To regain its credibility, the program must make a number of changes to enable more transparency and demand more competence from its operators.

The most egregious problems with the EB-5 program can be found in its 218 regional centers, which work with private-sector brokers to identify local investments and direct foreign participants to them. Examples abound of centers and brokers playing down risky investments and misrepresenting how the program works, including a promise that EB-5 investments are guaranteed by the federal government — when the government in fact does nothing of the sort. Many investments have failed to create the required 10 jobs and even gone bankrupt, leaving the investor without his money or his green card.

While many EB-5 regional centers have solid records, a disturbing number have directed investor money to risky projects and companies that pay little to no return, overseen by brokers who get a commission regardless of how the investment plays out.

Aside from accusations of outright fraud, there is also a clear lack of understanding among government administrators about how to manage an investment program. As a result, they often approve businesses that are simple to understand, like a condo development or a grocery store, but whose business models don’t generate enough profit to hire workers, while rejecting more sophisticated businesses that stand a greater potential of generating profits and jobs.

For the time being, these problems haven’t turned the tide of interest in the EB-5 program. But that could change: recent high-profile investigations by Reuters and Businessweek, as well as a warning against fraudulent brokers by the Chinese Supreme People’s Court, could start having a significant deterrent effect, especially since other countries, like Canada, are following America’s lead with their own versions of the program.

Fortunately, the solutions are straight forward. The federal government needs to rein in freewheeling brokers with heavier penalties for misrepresenting investments, hire more business-savvy administrators and make the entire process more transparent, so that applicants know why their money was accepted or rejected.

The EB-5 program has a lot of promise to reduce unemployment, and the White House is right to call for its expansion. Rather than end it, let’s fix it.

Availing services of an experienced attorney or law firm for EB-5 Investment Immigration program is a must and an investor should avoid falling into agent traps, who are bothered about commission payouts and personal interests only.

Source: NYTimes

If you have any questions, please feel free to contact Law Offices of RKNA.

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Jun 132012
 

Snap up condos, vacation homes in states like California and Florida

WASHINGTON: An extra home in the suburbs of Delhi or Bangalore was never enough for them.

Flush with cash and keen to diversify their portfolio, Indians are busy snapping up property in the US. And they are not Indian-Americans, but Indians from Delhi, Mumbai, Bangalore and Hyderabad, who are picking up single-family homes and condos for vacation or just investment.

Indians are among the top five international buyers of residential properties in the US, according to the latest report of the National Association of Realtors released Monday.

The US residential real estate business was worth $928.2 billion in the year ending March 2012, of which $82.5 billion — 4.8 % — came from international buyers. Indians accounted for 6% of this $82.5 billion.

They are buying mostly in Arizona, Nevada (Las Vegas), Florida and California. And most of these transactions, said an Indian-American realtor, were in cash. All of it, up front.

Source: HT 06/13/2012

Jun 112012
 

Good riddance, Eduardo.

Facebook co-founder Eduardo Saverin drew public ire last month following the revelation that he had renounced his U.S. citizenship, a move widely seen as a tax dodge. But thousands of wealthy foreigners are lining up to replace him, making investments here and putting themselves on a path to citizenship in the process.

The State Department expects to issue over 6,000 “investor visas” in the current fiscal year, which would be an all-time record. Other countries, meanwhile, are following the U.S.’s lead, keen to spur growth in lean economic times.

“Our goal is certainly job creation, and that’s what this program is all about,” said Bill Wright, a spokesman for U.S. Citizenship and Immigration Services. “At the same time, it’s allowing somebody from a foreign country to come and invest in our nation.”

Under the government’s EB-5 Immigrant Investor program, foreign investors can get conditional visas that allow them and their families to live, work and attend school in the U.S. To qualify for the visa, they must invest at least $1 million in a new or recently created business, or $500,000 for businesses in rural or high-unemployment areas.

The investment must be demonstrated to have created or preserved at least 10 full-time jobs for U.S. workers within two years. Assuming this condition is met, investors and their families graduate to permanent resident status, and can apply for full citizenship three years later.

While the EB-5 program has been around since 1990, demand has been surging as of late, fueled in large part by China’s growing elite, who accounted for 70% of the roughly 3,500 investor visas issued last year. State Department officials expect the program’s quota of 10,000 visas per year, which includes visas given to the spouses and children of investors, to be filled for the first time ever within the next year or two.

Some critics of the U.S. program question the fairness of letting wealthy immigrants pay for special treatment, while others say investments and job creation claims need stricter vetting. Immigrants who arrive via the program have no guarantee of recovering their investments, and may face deportation if they don’t produce the required number of jobs.

Investing overseas: Find the right balance

Of the roughly 12,000 immigrants who’ve arrived on the EB-5 investor visa, just 39% have earned permanent residency, according to USCIS data.

There’s also the lengthy application and approval process — a 2005 study by the Government Accountability Office said the program’s reputation for red tape had dampened interest among foreigners in the preceding years.

USCIS press secretary Christopher Bentley said in an email that the agency “continues to take steps to enhance [the EB-5 program’s] efficiency and integrity.” USCIS recently expanded the team of analysts responsible for evaluating EB-5 projects and proposals, he said.

Whatever the program’s problems, interest has been growing in recent years, and meanwhile, the U.S. has faced increasing competition from other countries trying to woo well-heeled foreigners with the promise of residency or citizenship.

In January, Ireland announced a new residency program for immigrant investors, and Australia unveiled a similar program last month.

“Governments are reinvigorating their policy and their resources around this,” said Eric Major, the CEO of Henley & Partners Ltd, an international consulting firm based on the European island of Jersey that specializes in immigration assistance for the wealthy.

Around 20 countries currently offer residency or citizenship by investment, Major said, a figure that may soon grow with economies struggling in much of the developed world. Major said he had met with five governments in the past eight months to discuss such programs.

Demand shows no sign of slowing down, either. International travel, banking and communication have become increasingly easy, while Asia, in particular, is minting new millionaires at a rapid pace.

“At no time in human history have we ever been so mobile and has there been so great a wealth effect from China and India,” Major said.

In the U.S., the immigrant investor program has been responsible for at least 46,810 jobs and more than $2.3 billion in investments since its inception in 1990, according to U.S. Citizenship and Immigration Services.

That’s a small fraction of overall foreign investment in the U.S., but it comes at no cost to the government. Were the EB-5 program to meet its 10,000-visa quota, it would contribute more than $4.4 billion to GDP and create or preserve nearly 75,000 jobs annually, according to a 2010 report prepared for the government by consulting firm ICF International.

The EB-5 program is up for renewal in the fall, and while USCIS says it has “no indication” that the initiative will be allowed to expire, some supporters are more wary.

“We can’t let our guard down,” said David Andersson, an immigration attorney and president of the Association to Invest In the USA. “The deadline approaches and Congress just demonstrates a reluctance to get things done.”

For foreign investors, Andersson said, the main appeal of immigration to the U.S. is access to good schools for their children or other family-related concerns.

5 projects financed by EB-5 investors

That was the case for Jordan Gagner, a Canadian investment manager who came with with his wife and three children to Arizona in 2009. His wife had come down with a serious case of rheumatoid arthritis, a condition exacerbated by Vancouver’s cold, wet weather.

“We just thought, we’ve got to get down to a climate that’s more conducive to this disease,” Gagner said.

Gagner invested in an assisted-living complex being constructed in Washington. He and his family now have green cards giving them permanent resident status, and plan on applying for citizenship as soon as they’re able.

“We’re fiercely proud about Canada, but there’s things we love about the U.S. that Canada just doesn’t provide,” Gagner said.

View this article on CNNMoney

Jun 092012
 

Toronto and Vancouver – may soon be yesterday’s news for many investors, majorly Chinese and Indians, now turning their attention to the U.S. ahead of a crucial deadline.

Thousands of wealthy foreign nationals, most from China and India, are now queuing up at American embassies in an effort to add their names to the U.S. Investor Immigration program, or EB5 visa.

The government must re-authorize it in September, making for an uncertain future given the November election two months later. That, at least, appears to be the thinking of investor immigrants eager to submit their applications to program officials before the deadline, securing a spot in line, even if the program is ultimately changed or cancelled.

Under the program, applicants and any immediate family garner permanent U.S. residency for an investment of $1 million. It must lead to 10 full-time jobs within two years.

Those prospective investors are just as keen to purchase second homes and investment properties in the U.S., a place many ultimately hope to migrate.

Winning that kind of re-location is increasing challenged in Canada, something zapping its appeal for many.

The Canadian investor program — where applicants post an $800,000 interest-free loan for government – has been temporarily closed until late this summer because of a three-year backlog.

That’s expected to slow the number of foreign nationals looking to buy homes in Vancouver and Toronto in hopes of immigrating there.

The U.S., on the other hand, has kept hope alive for thousands of would-be immigrants with pockets deep enough to fund that dream, say U.S. analysts.

Jun 072012
 

Investment based family immigration to USA under EB-5 category is helping many potential immigrants from India to realize their dream of living an American life in USA.

In this category High Networth Individuals & Families from India have been investing in a USCIS approved project and  benefiting from the various advantages of being a U.S. Green Card holder and U.S. Citizen. Read more about Green Card benefits.

Let us analyze the statistics of Indians Citizens applying for EB-5 category visa & green card during the period 01/2006 to 03/2012 (source U.S. Department of State and IIUSA)

Number of applicants applied for EB5 category visa successfully: –

  • Year 2006 : 2
  • Year 2007 : 19
  • Year 2008 : 19
  • Year 2009 : 72
  • Year 2010 : 62
  • Year 2011 : 37
  • Year 2012 : 38 (till 03/2012)

Though the numbers are growing, but as compared to China it is still very less, which alone successfully filed more than 1500 applications as of 03/2012 as compared to 38 from India.