TOP CORPORATE AT TORNEYS
CATHERINE D. HOLMES
JMBM | PARTNER & CHAIR OF INVESTMENT CAPITAL LAW GROUP
Catherine D. Holmes is chair
of JMBM's investment capital
law group, and the author of
the Investment Law Blog. She
has practiced law at JMBM
for over 30 years, focusing
on investment capital and business transactions. Holmes
helps clients worldwide to raise, invest and manage capital
from U.S. and non-U.S. investors. She has represented
more than 100 real estate developers in obtaining financing
through the EB-5 immigrant investor visa program for
the development of hotels, multi-family and mixed-use
developments through the U.S., and has represented
numerous Chinese investors in the purchase of hotels and
businesses in the U.S.
WHAT TRENDS ARE YOU SEEING
IN THE EB-5 INDUSTRY?
There is and will continue to be a substantial reduction in
EB-5 investors from China due to the 15-year waiting period
to obtain a U.S. conditional residency visa. This has caused
a significant reduction in new EB-5 projects, because EB-5
investors from other parts of the world have not made up in
numbers for the reduction in investors from China. There is
also an increase in uncertainties on the part of both NCEs
and EB-5 investors arising from the USCIS requirement for
redeployment of funds. These issues need to be addressed
through legislation and/or changes in USCIS regulations
and policy.
HOW ARE YOU HANDLING
THE ISSUE OF REDEPLOYMENT?
In the absence of clarification from USCIS, NCEs are required
to make judgements as to what types of redeployment will
meet USCIS policy, while at the same time attempting to
address the concerns of EB-5 investors that their capital is
being used for new investments that they never contemplated
when they made their original investment decision. The
safest form of redeployment from both of these perspectives
may be a redeployment in a project that is substantially
similar to the original EB-5 investment, although a pooled
fund may provide greater diversification and liquidity and
better address the needs of the investors.
MICHAEL HOMEIER
LAW OFFICE OF MICHAEL G. HOMEIER, PC | PRINCIPAL
Michael Homeier practices
securities, corporate and
transactional law (including EB-
5, crowdfunding, and blockchain),
bringing over 30 years of
experience. He represents EB-5
issuers, regional centers and developers on project structuring
and drafting EB-5 securities and business documents, including
PPMs and offering, transactional, and corporate documents.
With his prior firm Homeier Law PC, Homeier is a leader in EB-5-
related securities transactions, engaging with more than 400 EB-5
projects since 2009. He speaks frequently on EB-5, crowdfunding
and blockchain, also as an inspirational speaker to young adult
cancer survivors (as one himself) on post-treatment life success.
WHAT TRENDS ARE YOU SEEING
IN THE EB-5 INDUSTRY?
Despite reports of its imminent demise, today’s EB-5 industry
continues moving forward, slogging through lengthening
investment horizons, continued processing delays and highly
competitive investor marketplaces. Following closure of the China
market, new and renewed markets in India, Vietnam, Korea and
even South Africa are being tapped. Overt securities fraud cases
diminish, as quality projects, in particular small, direct projects,
find investors. Global immigrants continue preferring the USA, so
if enhanced integrity, reasonably increased investment minimums
and heightened RC oversight can be balanced by increased visa
numbers and reduced processing times, continued EB-5 growth
could continue. It’s well worth the effort.
HOW ARE YOU HANDLING
THE ISSUE OF REDEPLOYMENT?
As a securities lawyer, disclosure is key. SEC requires informing
investors about the redeployment strategy; it does not require
any particular strategy. Prospective investors must be informed
in the PPM, before they make the investment decision, what is
the EB-5 issuer’s redeployment strategy in significant detail
(what alternate investment(s), timeline, and risks, will
management select, may investors decide to opt in or out, are
alternates in line with the issuer’s initial purpose, etc.). All are
disclosed to the maximum extent reasonably practicable. With
this roadmap, the issuer must then follow it if a repayment
happens. It’s delicate, but doable.
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