At the very least, this lawsuit is sure to reinforce the demands made by Senator Grassley in S1501, and at this point in time, S1501 seems to be the only bill that seems to have a remote possibility of passing.
The proposed changes to S1501 are as follows, and it seems that even these changes shall suffice to significantly eliminate the fraud and abuse committed by most regional centers:
- In order to qualify for the benefits of a high unemployment area, a project would need to be in or adjacent to a census tract with 150% of the national unemployment rate. This will be a major change from the current rules that don’t specify the size of the area, and will cause most regional centers to lose eligibility for fund raising.
- The proposed legislation would also allow projects in census tracts with a poverty rate of at least 20%.
- Manufacturing and government infrastructure projects would have their own separate categories, qualifying for the lower fundraising level, as would businesses in certain federally designated economic development zones.
- The general fundraising level would be raised to $1.2 million from $1 million and the lower level would be raised to $800,000 from $500,000.
- Four thousand of the 10,000 EB-5 visas would be set aside only for businesses or projects that qualify at the lower level, up from the 3,000 in the legislation today. (In practice, nearly all the 10,000 visas today are for the lower fundraising level because the bulk of the country can qualify as a “targeted employment area”).
- The MOST IMPORTANT proposed change is that the changes be applied immediately to all petitions that weren't already approved when this new bill is passed.
Why should EB-5 visa investors choose Genuine Direct Investment Businesses?
EB-5 visa investors need to remember that it is very hard to earn money and easy to burn money.
A Genuine Direct Investment Business is the safest, fastest and usually profitable way to get an EB-5 visa.
A Genuine Direct Investment Business has the following characteristics:
It is 100% owned by the EB-5 visa investor.
Smart Business Broker advises clients to invest in safe businesses such as reputable franchises, restaurants, banquet halls, used car lots, groceries, child care, etc. and not in risky franchises such as Twistee Treats or Voodoo BBQ, as most franchises are unsuitable for EB-5 visa investors due to their inability to profitably create 10 jobs, due to which capital losses and EB-5 visa denials are common with risky franchises and regional centers.
Genuine Direct Investment Businesses are easily salable in the open market, while there is no market for partnership or regional center securities, risky franchises etc.
What are the advantages of choosing a Genuine Direct Investment Business to get the EB-5 visa?
The EB-5 visa investor has full ownership of their business and this helps eliminate conflict of interest and fraud, and results in higher earnings and capital gains.
The EB-5 visa investor usually earns more in annual profits than they'd get from a regional center in 5 years.
EB-5 visa investors who choose Genuine Direct Investment Businesses usually earns solid capital gains upon exit, while those who invest in risky franchises or regional centers usually experience capital loss.
The EB-5 visa investor has an easy exit strategy and can sell their business (usually for a profit) as soon as they get their permanent green card.
It is easier and faster to get the I-526 approval (temporary green card) and I-829 approval using a Genuine Direct Investment Business in comparison to regional centers.
Less than 50% of EB-5 visa investors who chose regional centers and risky franchises are able to get their I-829 approved.
EB-5 visa investors should avoid those who refuse to guarantee full disclosure of all material information and freedom from fraud and conflict of interest.
EB-5 visa investors interested in getting their EB-5 visa quickly and safely should contact SmartBusinessBroker.com.
Mohammed Shaikh, MBA, CFE, Licensed Business and RE Broker (CA & FL)
Smart Business Broker Inc.,
Phone: +1 407 535 0616