EB5 Investors Magazine "Top 25 issue" Volume 9 Issue 1 | Page 107

negotiation power and marketability increase immensely . A bonus for students is the chance of reduced educational costs if they could show residency in the state they want to study . 6 On the H-1B side , we have many India-born residents in the US with pending EB-2 and EB-3 petitions . Most have no hope of getting these petitions approved in a reasonable time . With a concurrent filing of I-526 and I-485 , they could get employment approval quickly . Once their I-526 petition is approved , they could proceed with the green card . The same applies to a valid E-2 visa holder . With a pending I-526 petition , they could also file for adjustment of status , and once they get their EAD approved , they can work anywhere they wish .
The source of funds must now include the capital investment and any administrative or other fees , such as USCIS filing fees associated with the investment . 7 Most RC projects already required the administrative fee to be sourced voluntarily under the previous law . The added mandated other fees requirement is not onerous . The meaning of more likely than not is vague and open to interpretation . It would have been helpful if the new law had clarified it . In recent years , USCIS has taken a very conservative position on this , issuing Request for Evidence ( RFEs ) and Notice of Intent to Deny ( NOIDs ) on the source of funds that would have been acceptable just a few years ago . 8 We hope the new USCIS regulations will end this practice . Many eligible potential investors get frustrated by the source of funds scrutiny imposed on them and often decide not to invest . USCIS must develop sophisticated systems that adapt to accepted payment methods of various international jurisdictions . For example , USCIS needs to conclude more likely than not , a medical doctor or an attorney earned the funds they plan to use as capital through lawful means if they are from a country that has a predominantly cash-based economy .
As broker-dealers , we already must have our clients fill out an investor questionnaire that checks the suitability of the investment . 9 We decide on their sophistication based on their income , assets , and overall understanding of the investment risks . Under the new law , migration agents operating overseas in the country of foreign investors have to check investor suitability . Previously , RCs performed this function for investors who reside abroad and find the investment either by themselves or through migration agents . USCIS has not yet issued regulatory guidance on how they plan to supervise intermediaries . In line with the law , they will most likely obligate the migration agents to ensure that each investor ’ s EB-5 petition includes a disclosure , signed by them , reflecting all fees , ongoing interest , and other compensation paid to any person in connection with the investment . These disclosures have already been part of the offering that each investor sees and signs off . The new law ’ s intent must be that each investor should be made aware of the related fees .
Previously , it was common for an RC to solicit investors directly . Once they identify an investor , they would refer the investor to an immigration attorney for processing . It is not clear whether the active involvement of a regulated broker-dealer or migration agent was necessary . However , a fully informed investor should inquire about other immigration alternatives from a nonconflicted financial advisor or a broker-dealer .
It is possible that due to some of the well-known challenges , EB-5 might not be the right fit for every applicant . They might have an issue with the source of funds , global tax , or residency requirement . They might not be able to wait as long as it takes to process their application . The cost of the EB-5 could be prohibitive . Therefore , clients should be able to consider alternative nonimmigrant intent visas such as E-2 , L-1 , O-1 , etc ., instead . They could also try EB-1 if they have exceptional talents and recognitions that set them apart nationally or internationally . When a team of immigration attorneys and broker-dealers covers the clients , they are more likely to get a customized solution .
In conclusion , intermediaries should be unconflicted among projects they promote and potentially other suitable immigration options with or without investment . They need to work as a team with immigration attorneys and RCs . They should match the potential immigration applicant with the best immigration option offering a menu of already vetted investment options if that immigration option necessitates an investment . Immigrants , introduced to solutions suitable for their specific needs , rather than to products RCs or intermediaries have on the shelf they need to sell , will once again gain trust in the system .
Marko Issever , the founding CEO of America EB5 Visa , leads EB-5 capital-related activities at Riverside Management Group , connecting international investors with EB-5 issuers . He recently launched CBP Invest , a global immigration company , advising clients in second-country citizenship in countries like Grenada , Turkey , Portugal , Spain , Malta and Greece . Previously , Issever was a managing director at BNY Mellon , leading the firm ’ s financial institutions derivative sales business globally . Issever speaks Turkish and Ladino Spanish fluently . He earned his MBA in finance from The Wharton School of the University of Pennsylvania . He is a graduate of Bogazici University and Robert College , located in Istanbul .
Sources :
1 https :// www . visalawyerblog . com / president-biden-resurrects-eb-5-regional-center-program-until- 2027-what-you-need-to-know /
2 https :// greencardbyinvestment . com / article / eb5-regional-center-program-should-stay-expired
3 https :// www . eb5investors . com / blog / direct-eb5-pooled-projects-regulations
4 https :// www . recapitalusa . com / what-eb-5s-revival-means-for-real-estate-lenders-investors /
5 https :// mshahlaw . com / new-legislation-allows-concurrent-filing-for-eb-5-investors-pending-i-526- petitions-included /
6 https :// www . edupass . org / immigrating-to-the-usa / green-card-for-international-students /
7 https :// www . forbes . com / sites / andyjsemotiuk / 2022 / 03 / 09 / investor-immigrants-greet-imminentrevival-of-the-eb-5-program /? sh = 69c74d307436
8 https :// www . foleymansfield . com / files / 1015 / 3487 / 9420 / YeXu _ EB5 _ Aug2018 . pdf
9 https :// www . eb5investors . com / magazine / article / eb5-broker-dealer-role