Sunday, June 7, 2015

Potential changes to S. 1501 may end up causing regional centers to completely leave the EB-5 visa program.

As it is, S. 1501 seems to have been heavily influenced by the major regional centers in order to force the smaller regional centers out of the EB-5 visa program and capture their market share.

S. 1501 has already proposed 2 important changes to the EB-5 visa program, which include an increased investment amount, restricting loans to  bank loans only and restrictions on TEA locations going forth.

However, there may be a few more amendments coming forward to S. 1501, and they are:

  1. Requirement that Regional centers comply with securities laws in the US AND abroad, as regional centers usually market and sell their securities abroad.
  2. Requirement of authenticated documents such as tax returns, bank records, loan agreements etc. to prove lawful source of funds.
  3. Restrictions on the current practice of regional centers hiring employees for only a few days and then firing them after the "evidence" of job creation is sent to the USCIS.
  4. Restricting TEA definitions to single census tracts for future EB-5 visa investments in even those regional centers where TEA definitions have been gerrymandered.
  5. Potential elimination of 'indirect job' counting.
In case these proposed amendments ARE included in S. 1501 before it is passed and signed into law, the regional center industry will anyway collapse as it will not only eliminate the money laundering and securities law violations, it will also require genuine employment creation and stop the gerrymandering in TEA definitions.

EB-5 visa investors need to remember that the ONLY safe way to get approved is through Genuine Direct Investment Businesses.

Here are some of the critical reasons that EB-5 visa investors should ALWAYS choose Genuine Direct Investment Businesses and avoid regional centers:
·         In a Genuine Direct Investment Business, it is quite unusual to encounter fraud or conflict of interest. This alone is THE biggest reason why EB-5 visa investors usually experience capital loss if they opt for regional centers or unsafe Direct Investments (such as Voodoo BBQ or Marcos Pizza), while those who opt for Genuine Direct Investment Businesses usually NEVER experience capital loss.
·         EB-5 visa investors who choose Genuine Direct Investment Businesses usually earn annual ROI of 15% to 40%, while those who select regional centers usually earn 0-2% annual ROI.
Genuine Direct Investment Businesses offer easy exit strategies to EB-5 visa investors while those who invest in regional centers experience TERRIBLE exit strategies. 
·         Regional Centers usually commit securities fraud and securities law violations while this is usually unheard of in Genuine Direct Investment Businesses. 
·         EB-5 visa investors usually get capital gains if they invest in a Genuine Direct Investment Business and almost NEVER get capital gains if they invest in a regional center. 
·         EB-5 visa investors in Genuine Direct Investment Businesses usually see faster processing and approval of their petitions, while it takes much longer for EB-5 visa investors to get their immigrant visa through regional centers. 
·         EB-5 visa investors in Genuine Direct Investment Businesses have a higher chance of getting their permanent green card, while those who opt for regional centers have a lower chance of getting their green card. 
If you are a business owner or high net worth individual interested in migrating to the US, please contact us for a free consultation. We offer a turnkey solution and have a 100% fee refund guarantee if a client is denied due to our fault.

Mohammed Shaikh, MBA (Accounting), CFE, Licensed Business & RE Broker (CA & FL)
Online Phone: +1 407 535 0616

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