" Lender credibility , lender source of funds , lender underwriting , and experienced counsel are important because they are all necessary components to the investors I-526E petition ."
tragedy of all – an investor having to start from scratch .
Retaining suitable and experienced counsel isn ’ t important to only the investor – Regional Centers and issuers have a vested interest in protecting their hard-earned track records as well as refund provisions to be wary of . They too have a vested interest in protecting their investors and making sure their cases are approved . It is not unusual for Regional Centers and issuers to do their own vetting of EB-5 attorneys to make sure they have the requisite experience and knowledge working with U . S . EB-5 loans before allowing them to prepare and file a case . If there are any doubts about an attorney ’ s ability to navigate and prepare a case , a Regional Center may require the investor ( or their attorney ) to hire experienced counsel to conduct a peer review of the I-526E before submission ( similar to when Regional Center ’ s require inexperienced attorneys to send their source of funds for third-party review with experienced EB-5 counsel ).
Before selecting a U . S . EB-5 loan or EB-5 counsel , one should carefully review the subscription documents for their EB-5 project and consider whether a poorly structured loan or poorly prepared EB-5 filing will jeopardize his or her eligibility to receive a refund if the I-526E is denied .
WHETHER THIS LOAN OPTION IS A GOOD OPTION DEPENDS ON AN INVESTOR ’ S CIRCUMSTANCES
Finally , it ’ s worth noting that just because this option is available to an investor doesn ’ t mean they should use this option . Ultimately whether it ’ s a good option depends on an investor ’ s circumstance . Some investors are more price sensitive and would rather not pay the interest rates being offered with most of today ’ s U . S . EB-5 loans . On the other hand , even with shortterm high interest rates , maybe this is an attractive option to hedge for an investor with vested RSUs who would rather not sell in a down market , with the bet that any rebound of the stock would far outweigh any interest the investor would pay .
Many lucky investors do not need exotic funding structures , or higher interest loans , but as long as demand in EB-5 slowdown is tied to lack of liquidity or adversely affected by depressed securities markets , innovation in lending will find its way to EB-5 .
The ability to acquire a U . S . based loan as another useful option in an investor ’ s decision-making toolbox before they make an informed investment , no different than whether to file based on a partial investment , whether to pursue concurrent filing , choice of lead investor based on nationality , and a host of other branches in their flowchart .
Niral Patel , a partner at KLD LLP ’ s New York office , has experience in many aspects of corporate and investment immigration law . For EB-5 , he oversees the lifecycle of EB-5 – corporate structuring , preparing I-956F applications , preparing I-829 templates , and advising on issues related to redeployment . For non-EB-5 matters , Patel consults companies in maintaining compliance for-E-2 and L-1A programs . He represents both domestic and global corporations with respect to preparing employment-based petitions and adjustment of status applications for their employees in the U . S . Patel also has federal litigation experience . He has successfully represented investors in federal court in mandamus actions for pending immigration cases , including EB-5 .
Phuong Le is a founding member and partner with KLD LLP . He has over 15 years of experience and helps lead a global EB-5 practice group . He draws upon an extensive background advising parties on all sides of EB-5 transactions , including regional centers and direct EB-5 investments , project developers , agents , and investors . His clients span the globe and he has advised on over 5,000 investor petitions and over $ 2.5 billion in EB-5 financing for projects across the U . S ., including commercial real estate , multifamily , charter schools , hotels , and publicly traded franchises . He frequently travels and shares his knowledge regarding complex EB-5 matters as a lecturer , author , and EB-5 expert witness for other firms and the EB-5 industry .
Recognized nationally for his vast experience in EB-5 law , Nima Korpivaara has
advised a multitude of developers , project principals and regional centers on EB-5
program compliance . He primarily works within the immigration practice at KLD LLP , counseling corporate clients and individual EB-5 investors on the EB-5 program ’ s USCIS requirements and processes .
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