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Agency issues guidance for investor-immigrants
USINFO | 2013-12-03 10:00
The EB-5 (Employment Based Fifth Preference) green card has become increasingly popular among Chinese would-be immigrant-investors in recent years due to the fact that the application process has a shorter review time and places fewer restrictions on applicants. However, the "Chicago Convention Center scandal", in which more than 250 would-be immigrant investors from China were defrauded to the tune of $11 million, has adversely affected the EB-5 immigration program. The scandal also highlighted some of the potential risks in the investment immigration process.
The first thing for EB-5 immigrant-investors to understand is that the EB-5 program is not administered by regional centers alone. There are two programs under EB-5: The basic program allows any individual to engage with the EB-5 program, but it involves a direct investment within a business, and it is more difficult to get the green card this way than by going the indirect investment route through regional centers.
The regional centers act as a consultant, guiding prospective immigrant-investors through the application process of becoming permanent U.S. residents. In this way, a bona fide consultant may improve the prospective EB-5 immigrant-investor's chances of success.
In 2007 there were only 11 EB-5 regional centers authorized by the United States Citizenship and Immigration Services (USCIS). Today that number has risen to 287, according to data released on the website of the U.S. Small Business Administration. It's important to remember that as not all regional centers can help prospective investors to get their green cards, selecting a good consultant is a matter of the utmost importance for all potential immigrant-investors.
"Asking questions is the most important [thing]," said Patrick F. Hogan, President of CMB Regional Center. Each would-be investor is advised to ask questions to verify the information given by regional centers. Some regional centers claim on their websites that they have a 100 percent success rate with applications, but Hogan urged would-be investors not to fall for such claims.
In addition, investors should review the details of every project that the regional center has recommended. For instance, any investor with plans to invest in a business in the U.S. should acquaint themselves with the failure rates of U.S. businesses.
"Then, you should demand the proof of what they have said,"Hogan added. "Demanding the proof and seeking out independent ways in which to verify the information that is being provided is the best way to go."
Incidents such as the "Chicago Convention Center scandal" could be avoided if would-be investors exercised the kind of due diligence suggested by Hogan. The facts of the case show that the operator of that regional center was 29 years old at the time of the scandal, despite claiming to have 15 years of experience in the hotel industry.
As well as guiding prospective EB-5 immigrant-investors in choosing a reliable regional center, Hogan also reminded them to avoid immigration traps. It should be remembered that the EB-5 investment program is an immigration program. The investor's focus is getting a green card through creating American jobs. When there is a regional center project promising a high return, the investor is likely to be risking their green card by pursuing a high return on their investment.
The first thing for EB-5 immigrant-investors to understand is that the EB-5 program is not administered by regional centers alone. There are two programs under EB-5: The basic program allows any individual to engage with the EB-5 program, but it involves a direct investment within a business, and it is more difficult to get the green card this way than by going the indirect investment route through regional centers.
The regional centers act as a consultant, guiding prospective immigrant-investors through the application process of becoming permanent U.S. residents. In this way, a bona fide consultant may improve the prospective EB-5 immigrant-investor's chances of success.
In 2007 there were only 11 EB-5 regional centers authorized by the United States Citizenship and Immigration Services (USCIS). Today that number has risen to 287, according to data released on the website of the U.S. Small Business Administration. It's important to remember that as not all regional centers can help prospective investors to get their green cards, selecting a good consultant is a matter of the utmost importance for all potential immigrant-investors.
"Asking questions is the most important [thing]," said Patrick F. Hogan, President of CMB Regional Center. Each would-be investor is advised to ask questions to verify the information given by regional centers. Some regional centers claim on their websites that they have a 100 percent success rate with applications, but Hogan urged would-be investors not to fall for such claims.
In addition, investors should review the details of every project that the regional center has recommended. For instance, any investor with plans to invest in a business in the U.S. should acquaint themselves with the failure rates of U.S. businesses.
"Then, you should demand the proof of what they have said,"Hogan added. "Demanding the proof and seeking out independent ways in which to verify the information that is being provided is the best way to go."
Incidents such as the "Chicago Convention Center scandal" could be avoided if would-be investors exercised the kind of due diligence suggested by Hogan. The facts of the case show that the operator of that regional center was 29 years old at the time of the scandal, despite claiming to have 15 years of experience in the hotel industry.
As well as guiding prospective EB-5 immigrant-investors in choosing a reliable regional center, Hogan also reminded them to avoid immigration traps. It should be remembered that the EB-5 investment program is an immigration program. The investor's focus is getting a green card through creating American jobs. When there is a regional center project promising a high return, the investor is likely to be risking their green card by pursuing a high return on their investment.
