TOP CORPORATE AT TORNEYS
RONALD FIELDSTONE
CORPORATE ATTORNEYS
EB5 INVESTORS MAGAZINE
R
onald Fieldstone, chair of Saul
Ewing Arnstein & Lehr LLP’s
Global Immigration and Foreign
Investment Group, and head of the
Firm’s Opportunity Zone Group,
practices primarily in the areas of
corporate/securities and taxation law. Fieldstone has actively
been serving as corporate/securities counsel for multifaceted
industries involving EB-5 immigrant visa investor offerings. He
represents developers and regional centers in EB-5 matters,
currently handling more than 350 EB-5 projects with combined
capital raise of nearly $8 billion. He frequently lectureson EB-5
corporate/securities for numerous government-sponsored
organizations, industry groups and professional associations.
Fieldstone graduated with a B.S., M.B.A., and J.D. from the
University of Pennsylvania.
WHAT TRENDS ARE YOU SEEING IN
THE EB-5 INDUSTRY?
designation due to COVID19 and different methods for
economists to determine a TEA classification. In certain markets
with a more friendly administration there is an increased demand
for the EB5 visa.
The headwinds are the June 30 sub setting, new proposed
legislation that now has IIUSA support that creates many
difficulties, barriers and cost increase although it does greatly
improve integrity measures. The consular delays due to COVID
is also a major problem.
HOW ARE YOU HANDLING THE ISSUE
OF REDEPLOYMENT?
With great care. We tear it like a new offering whether or not
investor consent needs to be obtained.
We emphasize
independent appraisals or feasibility studies to support the
financial assumptions and independence in the loan or equity
administration.
Also require a detailed immigration update to reflect all the
changes over the past 20 months.
This is a very complicated question. A few positives: New
administration that is much more user friendly. Easier to get TEA
CATHERINE DEBONO HOLMES
CORPORATE ATTORNEYS
EB5 INVESTORS MAGAZINE
C
atherine 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 35
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, and has represented numerous
Chinese investors.
Her finance and investment experience includes handling
business formations for entrepreneurs, private securities
offerings, structuring and offering of private investment funds,
and business and regulatory matters for investment bankers,
investment advisers, securities broker-dealers and real estate/
mortgage brokers.
WHAT TRENDS ARE YOU SEEING IN
THE EB-5 INDUSTRY?
The ability of U.S. project developers to use the EB-5 investment
program to raise capital continues to suffer from long waiting
46
EB5 INVESTORS MAGAZINE
periods for all EB-5 investors, and particularly those from China,
as well as from the substantial increase in the minimum
investment amount and changes in targeted employment
requirements. EB-5 investors continue to seek only projects in
targeted employment areas that qualify for the lower minimum
investment amount. Although there are some projects being
marketed at the higher minimum investment amount, they are
not attracting much investor interest. This means that the
number of projects that are able to raise financing under the
EB-5 program have been significantly reduced.
HOW ARE YOU HANDLING THE ISSUE
OF REDEPLOYMENT?
USCIS continued to disrupt the EB-5 program with its latest
pronouncement that redeployments must be made only in the
geographic area of the regional center that sponsored the
original project. This has made redeployment more difficult for
EB-5 investment funds. Some EB-5 investors from mainland
China would prefer to withdraw their visa petitions and receive a
return of their capital rather than redeploying. Even though an
NCE is usually not contractually required to repay those
withdrawing EB-5 investors, the NCE should consider using the
proceeds of repayment of their initial investment to repay the
withdrawing EB-5 investors.