Welcome to EB5 Investment Voice with Mona Shah and Mark Deal – Episode 1

On this first podcast with Mona Shah & Associates we cover some recent developments with EB-5 visas including: current legislation, as well as changes in oversight and funding. We are speaking with Mona Shah, Rebecca S. Singh and Omar Hakim who all have experience with immigration, EB-5 visas, and the corporate side of the immigration process.

Initially, the USCIS was unable to answer many of the questions associated with the application process. Only a handful of attorneys were working with EB-5s and, being a new form of immigration law, there was very little legal precedent existed. Ms. Shah and the other attorneys can provide EB-5 applicants a unique set of skills and experience based on her experience of working with EB-5 visas since its current inception. Ms. Shah and her team is able to offer assistance based on both experience and real questions that have been asked.

Omar Hakim – Corporate and SEC attorney. Mr. Hakim works to facilitate the business and corporate sides of EB-5 investments. Though a green card can be awarded, it is vital for investors to remember that the focus of the EB-5 is to start a business.

Rebecca S. Singh – Mr. Singh is the firms “go-to” person for investors, project developers, and immigration. She works with investors and developers to ensure the project is on track and is successful.

Recent developments in EB-5 visas

2015 was a very active year for legislation and one of the most unique in the visas history.

Some of the items that came up last year include:

• Increasing funding to allow for annual visits to project sites; current funding only allows for random visits;
• More oversight in the use of names in Regional Centers. It’s felt that the use of “Federal” or “U.S.” can be misleading as it gives a false sense of sponsorship with the U.S. government; and
• Prosecution of immigration lawyers for broker-dealer violations.

If clients are uncomfortable with the business plan or any other part of the business, they are encouraged to seek advice from third-parties, such as financial advisors, to get more in-depth advice than an immigration attorney can offer.

Source of funds

It is not enough for the investor to have a loan, the USCIS began requiring that investors show that they have collateral. It would no longer be allowed that loans come from family members – funds must be coming from banks or other financial institutions.

Potentially, new rulings would require that gifts must come from family members only.

Retrogression / Job creation

According to the U.S. Department of State, an investor cannot apply for a visa until they have reached their priority date; recent changes have eased this process for many countries except for mainland China. Job creation can be confusing for some but a current draft memo from the USCIS will soon clarify many of these issues.

For investors

The things investors and project developers and immigration attorneys need to be on the lookout for.

Project developers are gaining interest because EB-5s are being cited as alternative financing. The popularity is increasing and the audience for EB-5 visas has mushroomed – including real estate developers and brokers.

It is important to understand how to get an investor to come into a project and to market the project. Developers all over the country have utilized the EB-5 program in many unique forms – billions of dollars have been invested and thousands of jobs created.

The EB-5 program is both popular and necessary; while the U.S. dealt with the recent economic downturn, the program successfully created thousands of jobs in numerous industries. The popularity has allowed many projects to come to fruition which either wouldn’t have been possible otherwise.

The future

This year is set to be another good year for investors. The attorneys feel that any future filing deadlines may be retroactive and foresee another mass filing sometime this year. The Integrity Bill (American Job Creation and Investment Protection Act) is working to make the EB-5 process more transparent and ensure that investors are fully aware of what is happening with their project. There is legislation in place which may increase the number of visas offered in 2016.