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Investor Visas More Attainable

Katie Rapone — Mon, 05 Dec 2011 14:15:45 +0000

The Economist reports on how it has become even easier to obtain an investor visa in the USA, given the current economic climate.

Give me your Gucci-clad masses

It is ever easier to buy your way in

Dec 3rd 2011 | SEATTLE | from the print edition

“GIVE me your tired, your poor, your huddled masses,” reads Emma Lazarus’s ode to immigration inscribed on a plaque beneath the Statue of Liberty. More than a century later, however, it is the jet-lagged and rich who are receiving the warmest welcome at America’s borders.

Two senators, Charles Schumer, a Democrat, and Mike Lee, a Republican, recently introduced legislation to fast-track visas for foreigners spending $500,000 on residential property. Their Visit USA Act would allow purchasers and their families to live in America for as long as they owned their houses, though not to work there or receive any federal benefits.

The senators envisage wealthy jet-setters and well-heeled retirees boosting America’s weak housing market. As buyers would have to live in their new homes for at least 180 days a year, they would also (very handily) be liable to pay American tax on any foreign earnings.

Although the act is unlikely to become law anytime soon, would-be immigrants with half a million dollars in hand need not despair: America has a visas-for-cash scheme up and running. The Immigrant Investor Programme, also known as EB-5, was set up in 1990 to lure in foreigners by giving them the right to live and work there permanently if they created jobs.

Initially EB-5 came laden with stringent conditions: immigrants had to invest $1m either in a new enterprise that would create at least ten full-time jobs, or in a failing one to preserve the same number. They were required to manage the business themselves, and even to dedicate some of the jobs to exports. If a company failed in its first two years, investors would lose both their money and their green cards.

With the exception of the two-year rule, these restrictions have now melted away. Investors today can choose to buy into all sorts of packaged projects, created by regional centres that oversee their day-to-day management. Many projects qualify for a minimum investment of only $500,000, designed to push investment to rural regions and areas of high unemployment. Crucially, the required ten jobs no longer need to be in direct employment. This permits investment in limited partnerships whose purpose is to lend money to companies that do employ workers, reducing investors’ risk.

The logical conclusion is that immigrants could qualify for permanent residency simply by buying local government bonds—and that is exactly what did happen in October. A group of 95 investors, mostly Chinese, bought $48m of Washington state bonds to help finance a replacement for the longest floating bridge in the world, near Seattle.

The evolution of the EB-5 scheme has angered some of those offering traditional investments to immigrants. Henry Liebman is chief executive of American Life, a Seattle-based real estate company that manages around 15% of all EB-5 projects nationwide. “If an investor has the chance to buy a bond backed by the full faith and credit of the state, why would he give a developer $500,000?” he wonders.

America’s struggling construction sector certainly needs the money. While $48m accounted for less than 10% of the bridge bonds issue (and just a tiny fraction of the project’s multi-billion dollar total bill), EB-5 finance has become a much-needed source of funds for private property deals.

The rules, however, are unlikely to be tightened again. Over the summer, the Citizenship and Immigration Services streamlined the EB-5 process further. Last year, 2,480 immigrants got their green cards via EB-5. The Obama administration would like to see that number increase to 10,000 a year, which should bring in billions of dollars for building shops, offices and infrastructure. It should also mean tens of thousands of jobs for the poor, huddled masses of America’s unemployed.

EB-5 to Increase Capital in Michigan

Katie Rapone — Mon, 21 Nov 2011 20:08:43 +0000

According to the South Bend Tribune, the state of Michigan intends to utilize the EB-5 Visa program to increase available capital and decrease unemployment.

Green cards for jobs on table

Gov. Snyder wants to offer visas to investors.

By COURTNEY CULEY

November 21, 2011

LANSING — Foreign investors willing to put up a large lump sum can receive a green card under a federal program that Gov. Rick Snyder wants to use to bring capital to Michigan.

The EB-5 Visa Program provides 10,000 immigrant visas each year to investors willing to make at least a $500,000 investment and create 10 jobs, said Phil Santer, capital services associate for the Michigan Economic Development Corp.

“The goal is to increase availability of capital in Michigan,” Santer said. Snyder hopes to do that through the EB-5 Visa Program.

The EB-5 Visa Program started in the 1990s, Santer said, but it’s a tool Michigan can use to a greater extent to Michigan Economic Development Corp.

The immigrant receiving the visa is required to invest $1,000,000 in their new businesses, Santer said. If they choose to locate their business in a targeted employment area, the cost is cut in half.

Although it is a federal program, Michigan is responsible for choosing the target area of the investors.

Targeted employment areas, Santer said, are areas with high unemployment rates. If a city has an average unemployment rate 150 percent of the national average, it is a target area.

Rural areas, areas outside a city or town with 20,000 or more people, are also considered target areas for immigrant investors, according to the corporation.

Wayne County, Mecosta County and others are considered Michigan’s target areas, Santer said.

The foreign investor receives conditional permanent resident status for a two-year period if they are accepted into the program, according to the Michigan Economic Development Corp.

After that period, a permanent green card may be issued. The investor can apply for citizenship five years after they received the conditional permanent residence.

The Federation for American Immigration Reform is against the visa program.

“The EB-5 program is evidence that the whole system is broken,” said Bob Dane, communications director for the federation. Instead of having an immigration policy based on skills, it’s based on how much money immigrants are willing to invest, he said.

The EB-5 visa program devalues what citizenship means, Dane said.

Photo: Portage Lake, Michigan

EB-5 Draws Latin American Investors

Katie Rapone — Thu, 10 Nov 2011 20:14:54 +0000

The Miami Herald reports that Miami is drawing significant interest from investors in Latin America who wish to invest in the EB5 Visa Program.

For Latin America’s wealthy elite, investment can buy U.S. residency

BY MELISSA SANCHEZ AND ALFONSO CHARDY

Every few months, Miami attorney Marisa Casablanca flies to South America to meet with wealthy individuals who want to invest $500,000 for the chance to immigrate legally to the United States.

In Colombia and Peru, she gives presentations on the investor visa that’s big in China and growing in popularity in Latin America. In Venezuela, where fears of kidnappings make the rich queasy about sitting in a single room together, she arranges one-on-one meetings with potential clients.

“We’ve definitely seen an increase in interest from Latin America, which we attribute to security reasons,” said Casablanca. “People I’ve helped get green cards for in recent years are now contacting me, asking me to please talk to their cousins because they need to get out of there.”

And Miami has drawn significant interest from both the Latin American elite looking to escape political instability and drug violence — and the developers who want their money. By investing $500,000 in a designated high-unemployment or rural area, or $1 million anywhere else, a foreign national and his or her family can obtain conditional EB-5 visas that become permanent if the investment creates at least 10 jobs for two years.

What’s more, experts say, is that the U.S. recession has contributed to a growing EB-5 industry as dozens of private companies seek permission to pool investors’ money in order to finance projects such as hotels and housing developments that can’t get traditional loans from banks. For the foreigners, applying through a so-called EB-5 regional center lets them live in the U.S., put their children through school here and sit back while somebody else manages their investment and worries about fulfilling the job creation requirements.

“It’s access to capital,” said Emilio González, a former director of U.S. Citizenship and Immigration Services under President George W. Bush. “It satisfies the U.S. need to create jobs and it satisfies an investor’s need to get a green card for whatever reason.”

In recent months, the Obama administration has promised to streamline the EB-5 process in order to encourage more foreigners to make investments that will create jobs. The program is estimated to have created about 34,000 jobs since its inception in 1990. Meanwhile, two U.S. senators recently proposed a similar program that would grant visas to foreigners who spend $500,000 on real estate as a way to bolster the housing market.

In the 2009 fiscal year, about 1,000 foreigners applied for EB-5 visas, according to USCIS. The number doubled in 2010. And, in just the first 10 months of the 2011 fiscal year, 3,355 foreigners had petitioned for the visa, of which about 1,400 have been approved.

More than half the applicants are Chinese. However, in the past two years petitions from Latin Americans rose by about 71 percent, with Venezuela and Mexico leading the way. Government statistics show that 95 Latin Americans applied for the program in the 2010 fiscal year. Another 163 applied in the first 10 months of 2011. Of these, USCIS approved 44 petitions in 2010 and 68 in 2011.

The pace of growth has caused many to sound alarms of caution, warning potential investors to carefully research regional centers before turning over any cash. According to USCIS estimates, about 90 to 95 percent of EB-5 petitioners invest through regional centers, which match projects to willing foreign investors, shepherd the applicants through the visa process and collect $30,000 to $50,000 in fees along the way. Projects range from a ski resort in Maine to renewable energy in California.

Photo: Bogotá, DC, Columbia

Albany, NY Pursues Regional Center

Katie Rapone — Thu, 10 Nov 2011 19:51:14 +0000

Eager to join the existing New York EB-5 Regional Centers, The Business Review reports that Albany, NY has submitted an application to the Development Council, for its own regional center.

EB-5 visa program could match Albany-area developers with wealthy foreign investors

The Business Review by Michael DeMasi, Reporter

Business leaders in Albany, New York, want to participate in a federal visa program that matches wealthy foreign investors with American developers.

The Center for Economic Growth has been talking to real estate developers, financiers, and attorneys about the steps needed to create what’s known as an EB-5 Regional Center.

The regional center would serve as the conduit between wealthy foreigners and local developers looking for an alternative source of financing, said CEG President F. Michael Tucker.

Establishing the regional center would cost $100,000 to $125,000 to do an economic analysis justifying the need for the program, Tucker said.

An application seeking funding for the regional center has been submitted to the Capital Region Economic Development Council, one of the groups created by Gov. Andrew Cuomo to prioritize and recommend economic development projects across the state.

Tucker, who serves on the council, said he would abstain from any discussion about funding the regional center.

Under the federal EB-5 program, foreigners are eligible to receive a permanent green card if they invest at least $500,000 in a U.S. company or business that results in the creation of 10 full-time jobs in a rural or distressed area.

“It basically provides a tranche of financing that would complement traditional bank debt and developer equity because right now in this credit market developers need more equity than they have in the past,” Tucker said.

The United Group of Cos in Troy, a large developer of student housing, has experience with EB-5 in Florida.

In New York, an EB-5 Regional Center was created in Plattsburgh.

In Vermont, more than 400 foreign investors are helping pay for a large expansion of the Jay Peak ski resort through the EB-5 program.

Photo: Y.MC.A in Albany, NY

Judge Places Victorville Case on Hold

Katie Rapone — Tue, 08 Nov 2011 20:09:22 +0000

The Victorville Daily Press reports that the city’s lawsuit against the federal government is currently on hold, as the city waits to hear from USCIS Appeals Court regarding the reinstatement of its regional center.

Victorville’s suit against Feds on hold

City expects decision on appeal of EB-5 termination Dec. 2

November 07, 2011 7:23 PM

VICTORVILLE • A judge has agreed to pause Victorville’s lawsuit against the federal government, waiting to see if the city first succeeds in overturning the termination of its EB-5 visa investor program through an administrative appeals process.

U.S. Citizenship and Immigration Services approved Victorville’s EB-5 regional center in 2009, allowing the city to solicit loans from foreign citizens in exchange for green cards, so long as the loans helped create 10 local jobs. Then, in a precedent-setting move, USCIS terminated Victorville’s program in October 2010 due to “material factual discrepancies” in related financial reports.

Victorville expects to hear back Dec. 2 from USCIS’ Administrative Appeals Office, but appears ready to move forward with suing the federal agency if the termination is upheld.

“What we care most about is keeping the regional center and being able to use it at a future date for some future project,” Mayor Ryan McEachron said Monday.

The city built its wastewater treatment plant primarily using interfund loans, pledging to pay them back in part with EB-5 funds. McEachron said they’ve accepted that’s not going to happen in light of the termination, with all $9.5 million in loans Victorville had collected now refunded to investors.

Now the city is hedging its bets on plans to sell the plant to the regional Victor Valley Wastewater Treatment Authority. So far, that deal has stalled based on a substantial gap between what the city wants to get for the plant and what VVWRA is willing to pay.

Still, Victorville wants to use EB-5 funds for future projects at Southern California Logistics Airport. And so a split City Council voted in June to sue the federal government over the program’s termination.

Photo: Sign points to Victorville, CA

EB-5 Reaches Vail CO

Katie Rapone — Wed, 02 Nov 2011 12:00:18 +0000

The Denver Post reports that developers of the Solaris project in Vail Colorado, are seeking $80 million in EB-5 funding through the Colorado Regional Center. Solaris is the first EB-5 project to be approved in Colorado.

EB-5 visa program for wealthy investors growing rapidly

By Nancy Lofholm

The Denver Post

The huge Solaris project under construction in Vail for four years isn’t simply going to produce new residences and commercial spaces in a Colorado resort. It also has the potential to yield green cards for as many as 160 wealthy foreigners and their families.

This fast track to legal status is possible because Solaris developers are seeking $80 million from foreign investors — mainly Chinese and South Koreans — under a little-known but rapidly growing visa program called the EB-5. The 21-year-old program is currently being rediscovered in the aftermath of America’s crippling recession.

To qualify for EB-5 visas, foreigners must invest at least $500,000 in a U.S. project or business that will create at least 10 jobs. If that happens within two years, the foreign investor qualifies for legal-residence status that includes bringing a spouse and dependent children to America.

Detractors say it is nothing more than a way for the wealthy to buy their way into the country or another avenue for investment scams. But backers of the program call it a great alternative to going to a bank in this economy for loans: It’s a way to garner capital funding, create jobs, and attract educated and accomplished immigrants who will be valuable additions to the American melting pot.

“It’s like when you buy a season pass to Vail to ski. With EB-5, you buy a season pass to live in America and you pay $500,000 for it,” said Jeff Edwards, who recently sold one of four government-approved centers in Colorado that serve as middlemen linking developers with foreign investors.

Edwards added that the goal of the EB-5 program is “sincere and genuine.”

“It’s desperately needed in this economy,” he said.

That need is reflected in the mushrooming of so-called EB-5 Regional Centers across the country as banks clamp down on domestic lending and unemployment rates stay high. The numbers of approved centers that make money by charging fees to hook up investors and projects climb weekly on the U.S. Citizenship and Immigration Services website. There are currently 191, compared with 11 in 2007.

There also is huge growth in the number of EB-5 marketers, attorneys and economists who do everything from drawing in foreign investors to writing financial reports for the regional centers. The Internet is rife with pitches for “free consultations” and promises of “Get your USA green cards.” EB-5 “boot camps” are being held in hotel ballrooms across the country.

There is not yet a corresponding increase in EB-5 projects. Several planned EB-5 projects in Colorado, including a new residential community near Leadville, have drawn no foreign investors and did not get off the drawing board after the economy spiraled downward.

Developers have been seeking EB-5 investors for other Colorado projects that have not yet panned out, including a biomass-fuels facility, a metals-purification plant, an assisted-living center and a senior living center.

Another EB-5-funded project planned for downtown Denver is being kept under tight wraps after the sale of Invest America EB-5 from Edwards to a group of Colorado investors.

The $375 million Solaris project in Vail is the first project in Colorado to be approved and to begin lining up foreign investors.

“Other developers are looking for EB-5 money, but we are the only one doing something in Colorado now,” said Chet Schwartz with the Colorado Regional Center.

Schwartz said part of the problem is that, like most government programs, obtaining EB-5 investments and working one’s way through the entire process is enormously complicated. It’s nowhere near as simple as handing over a chunk of cash for a green card. And it is by no means free of risk.

A limit of 10,000 foreign investors and family members can earn EB-5 visas annually but they receive no guarantee of any return on their investments.

They also can face deportation if their money fails to create 10 jobs in the two years following the investment.

Nearly 6,000 foreign EB-5 investors have applied for permanent residency through the program since it was created, but only 3,200 have received green cards. In an example of how interest in this program has soared, 715 investors applied for permanent residency in the first four months of this year.

Another example of its increasing popularity: Enough investors have been caught up in projects that didn’t pan out that the Chinese government has issued warnings about EB-5 visas.

Ira Mehlman with the Federation for American Immigration Reform said those who favor reforming immigration in the United States also should be issuing warnings about this program.

“If there is such a good business investment, you don’t need to promise people all sorts of visa benefits,” Mehlman said. “We have reviewed this program, and we think it is dysfunctional.”

EB-5 backers currently are a little nervous about a bill introduced this month to help bail out the U.S. real estate market. That bill would allow foreigners who spend at least $500,000 in cash on residential property to obtain visas. At least $250,000 of that money would have to be spent on a primary residence that the owner would live in for at least 180 days a year. It could be rented for the remainder.

If the property is sold, buyers would lose their visa eligibility.

Even with all the requirements, the housing program sounds easier than plowing through EB-5 requirements.

“I would think someone would think about that if it is, in fact, as simple as initial reports make it sound,” Schwartz said.

The U.S. Chamber of Commerce is supporting the home-buying bill, citing the many EB-5 hurdles that deter foreign investors from coming to the United States to spend their money.

Photo: Gore Creek Drive, Vail, CO

New RC Approved in Maine

Katie Rapone — Tue, 25 Oct 2011 21:12:41 +0000

WABI TV-5, an affiliate of CBS, reports that USCIS has approved a new RC in Rangeley, Maine.

Federal Visa Program Could Bring & Jobs To Western Maine

by Rob Poindexter

Augusta - A federal visa program to stimulate business and job growth in Western Maine was announced in Augusta Tuesday.

The U.S. Department of Homeland Security has authorized a regional center in Rangeley to coordinate foreign investment and new job creation as part of the EB-5 employment-based visa program.

The EB-5 visa program provides a way for foreign nationals to obtain a green card and permanent residency in the United States by investing in U.S. companies within the designated regional area.

Representatives from Saddleback ski resort and other businesses in greater Franklin County, and Senator Susan Collins office were on hand to celebrate the news. In order to qualify each investor must make an investment of $500,000 as well as pass an extensive background check and their investment must create a minimum of 10 jobs directly or indirectly. “For example an indirect job creation would be when a lodging facility is built it may create five jobs at that facility. But with the increased lodging in the area and more overall patrons visiting this will create more jobs in the restaurants and retail businesses in the area that do support that lodging facility.”

The program covers Franklin County and Livermore Falls in Androscoggin County.

Photo: Rangeley Lake, Maine.

Also……

A more recent update on the new RC comes from First Tracks Online Ski Magazine. The publication announces the regional centers name, USA Lifestyles, Inc. Saddleback Maine ski resort is participating in the EB-5 Program.

Maine Ski Resort Partners in Foreign Investment Program

Published on October 26, 2011 @ 7:00 am

By First Tracks!! Online Media

Rangeley, ME – Earlier this month, the United States Citizenship and Immigration Services (USCIS) approved USA Lifestyles, Inc. as a Regional Center within the Immigrant Investor Pilot Program, known as EB-5. The designated geographic area of the USA Lifestyles Regional Center includes Franklin County and Livermore Falls in Androscoggin County, collectively known as Greater Franklin County. Saddleback Maine, a ski and snowboard resort in the state’s northwestern corner, is one of the group’s participants.

The EB-5 Visa program provides a method for foreign nationals to obtain a green card and permanent residency in the United States through investment in U.S. companies within a designated regional area. To qualify for an EB-5 visa individuals must invest one million dollars in a program that creates or preserves at least 10 jobs, however, this regional center is in a designated rural area which allows a $500,000 minimum investment.

“The benefit of a EB-5 Regional Center is that an EB-5 investor’s investment must create 10 jobs directly or indirectly. This allows more opportunities for small businesses needing funding to qualify for EB-5 under this program. For instance, due to the nature of some businesses adding 10 jobs directly to their company may not be possible, but the funding may create additional jobs indirectly in the area,” said USA Lifestyles President and Saddleback General Manager, Christopher Farmer. “An example of indirect job creation would be when a lodging facility is built it may create five jobs on site, however with the increase in lodging in the area, more overall patrons will visit. This will create the need for more jobs in the restaurants and retail businesses that support the lodging facility.”

On November 23, 2010, USA Lifestyles Inc. made application to the Department of U.S. Citizenship and Immigration Services for designation as a Regional Center covering Greater Franklin County. The Regional Center designation is the result of a collaborative private enterprise effort between Saddleback Mountain, Greater Franklin Development Corporation, and Otis Ventures.

USA Lifestyles Inc. will focus on offering EB-5 compliant capital investment opportunities in new commercial enterprises within their geographic scope in the economic categories of Ski Lodges and Resorts, Testing Laboratories, Wood Products Manufacturing, Restaurants, Lessors of Non Residential buildings, Museums and Construction.

The start of this initiative began in 2008 with the recommendation of marketing strategist, Foster Chandler of Killington, Vt. Saddleback then began looking at the success of Jay Peak Resort and the Vermont State EB-5 Regional Center that led to a quarter billion dollar foreign investment in the northern Vermont ski and snowboard resort’s infrastructure. Farmer began to research the possibility of establishing a regional center in the Northern Franklin County area to create more quality private sector jobs at Saddleback Maine and other area businesses in a tough economic climate.

“Growing up in Franklin County, I watched hundreds of good quality manufacturing jobs disappear from the area, leaving the state for foreign lands,” noted Farmer. “This is a unique opportunity to bring investment dollars back from those areas to Franklin County and create good paying long-term jobs. In my opinion, the Berry Family’s goal of preserving jobs and creating new quality jobs will now reach a new level with this EB-5 regional center.”

In 2009, the Greater Franklin Development Corp, established by local business owners in 1998 as an effort to strengthen the economic development in the greater Franklin County area, approved an initial grant to help defer the legal costs to begin the process of approval for an EB-5 regional center, and continued to strongly support the development of the project.

“We are really excited about the positive economic opportunities that the EB-5 Regional Center will offer to existing businesses and businesses looking to locate in Franklin County and Livermore Falls. The prospect of creating jobs in the greater Franklin County region is limitless,” says Alison Hagerstrom, Executive Director of Greater Franklin Development Corp.

In the summer of 2010 Otis Ventures, seeing the potential for redevelopment of the James River Otis Mill, signed on to assist with the EB-5 Regional Center application by assuming some of the costs of the econometric studies and legal fees asssociated with establishing the regional center.

“The EB-5 Regional Center will be a great opportunity for Otis Ventures to attract investors and advance the revitalization of the Otis Mill and the surrounding community…and most importantly, create jobs!” agreed Mary Howes, Otis Ventures, LLC.

Senator Susan Collins and her staff have been assisting the business group by asking questions and getting answers from USCIS as well as other agencies during the approval process.

“This is a great day for Franklin County, Livermore Falls, USA Lifestyles, and for the State of Maine. Western Maine is a place of extraordinary beauty, strong communities, and a skilled and dedicated workforce. As a Regional Center, this area now will be able to attract investment not only from Maine and the United States, but also from around the world. With this investment will come new economic opportunities and, most important, good jobs,” said Collins.

In late spring 2011, the 125th legislature passed LD-1 which directed the Department of Economic and Community Development (DECD) to collaborate with other agencies and businesses to make application for an EB-5 state regional center. When it was discovered that a group in Franklin County had already made application in November 2010, DECD chose to put their support behind the initiative rather than “reinventing the wheel.”

“This is a great opportunity being seized. We have a group in Franklin County being the first to bring this new economic development tool to Maine, a tool for creating jobs in Maine for Maine people that doesn’t use taxpayer assistance,” explained George Gervais, Commissioner of the Department of Economic and Community Development.

Photo: Saddleback ski resort

Indiana RC Awaits Promising Future

Katie Rapone — Wed, 19 Oct 2011 19:46:24 +0000

According to The Herald Bulletin, the future looks bright for the Energize ECI EB-5 Visa Regional Center, LLC. The RC is drawing interest from companies nationwide, looking to bring their businesses to the area.

Proposed Visa center draws interest from companies

Madison County ideal location, center says

By Abbey Doyle

ANDERSON, Ind. — The formation of an EB-5 Visa Regional Center in central Indiana may mean hundreds of more jobs for Madison County, with three companies in particular looking to relocate here.

The center — Energize ECI EB-5 Visa Regional Center, LLC — is a government-sanctioned investment zone that will put foreign investors on a fast track for U.S. citizenship if they meet specific criteria. The zone is nine counties, including Madison County, with the center in Muncie.

Since talk of the center began more than a year ago businesses from across the country have been looking to central Indiana as possible relocation or expansion sites. And Madison County has been one of the most popular, said center principal partner Tom Farris.

The three companies he said have begun the process to come to Madison County with the help of investors through EB-5 could mean more than 1,000 jobs.

Farris didn’t give specific details about the prospective businesses. A California plastic recycling company is very near committed to coming to Madison County, he said, and was used by the center as a prospective business when the application was made to the U.S. Citizenship and Immigration Services (USCIS).

That company looked to Madison County to take advantage of the EB-5 investors and be close to Indianapolis. Initial employment for the company, Farris said, would be a little over 100 but by the end of the second year employment numbers could top 200.

Another project that is looking to Madison County is a food processing plant that would employ more than 1,000, he said. That project has been approved to take advantage of EB-5. A holdup to locating to Madison County though, Farris said, could be finding enough acreage together.

A third company that has submitted a business plan to Energize-ECI’s EB-5 center is a California battery company, he said, pointing out the area’s history with the auto and battery industry.

Anderson Economic Development Director Linda Dawson said the three projects are “viable.”

“They are interested mainly in Madison County because of our proximity to Indianapolis and definitely because of our EB-5 designation,” she said. “There are several more processes we need to go through to see if these are perfect matches. The type of prospects they are are right in line with where we always thought our target industries are — particularly auto-related activity and food processing activity.”

Right now the county’s economic development and governmental entities are in the process of vetting out the companies to see if their incentive packages make sense for what the company will invest in the county and the companies are looking at the area’s resources to see if it is a good match for them.

Congress created the fifth employment based preference (EB-5) immigrant visa category in 1990 for qualified foreigners looking to invest in a business that will benefit the U.S. economy and create or save at least 10 full-time jobs for American workers.

This center is the first to be formed in Indiana. Some Indiana counties are included in centers in Illinois and Kentucky.

The investment is typically $1 million although it can be reduced to $500,000 if the investment is made in a rural area or an area with unemployment one and a half times the national average — a TEA or Targeted Unemployment Area. Much of Madison County is considered to be TEA, and all of the areas the three companies are looking to locate are designated as TEAs.

The regional center, Farris said, will act as a facilitator bringing together project developers and foreign investors, reviewing and evaluating proposed business plans for projects and placing qualifying projects before interested investors.

A company can receive funding from many different investors via EB-5 but each investment must create at least 10 jobs.

Dawson said she’s seen the importance of the city being designated in the EB-5 zone firsthand on trips to China.

“It will be one additional economic development tool that will put us at the top of the list for foreign investment,” she said. “In our recent trip to China we were continually answering questions about the EB-5. The wealthiest people in China have great interest in this. We currently have four individuals that are ready to invest half a million each in a project in Anderson, and we are issuing letters of invitation for them to come and look at Anderson. So the challenge now is to find the right projects that will be successful and need this type of investment.”

Corporation for Economic Development Director Rob Sparks said the center will be another tool to use for job creation and capital investment.

“This is investing dollars into American jobs, into creating wealth here,” he said. “Obviously foreign investment dollars are coming; we should be welcoming those investment dollars. We live in a global economy.”

There are approximately 10,000 EB-5 green cards available each year; 3,000 are reserved for those investing in TEAs. More than 98 percent of immigration investment is done through these regional centers.

The EB-5 Visa program gives qualified investors a temporary green card in exchange for their investment and job creation. After two years, the investor can petition USCIS to remove the initial restrictions to their visas.

Farris stressed that companies that are taking advantage of EB-5 investors most likely will have funding from other sources. This program though provides additional sources of funding at a time when banks and venture capital firms aren’t being quite as aggressive with their loans to commercial enterprise as well as creating jobs in the center’s geographical area.

Most of the applications to the center from investors have come from Asia with a growing number from India. China though, Farris said, remains the No. 1 source, although the center is seeing more from Europe as its economy is struggling.

And applicants don’t have to, and often won’t, surrender their own citizenship or even live in the U.S. once they gain citizenship.

“Indiana has a great reputation right now,” Farris said. “It is a good state for businesses to locate in because of the state’s low debt, which means we are not likely to increase taxes. The stability bodes well for us.”

There are no investors yet through the center, although it has received many applications from both businesses needing investors and those wanting to invest, he said.

Photo: Indiana Interstate

EB-5 Expected to Finance $35 Million Resort Expansion

Katie Rapone — Tue, 18 Oct 2011 21:34:35 +0000

The Concord Monitor reports that Ragged Mountain Resort in Danbury, New Hampshire, has been approved for EB-5 funding, through the newly designated New Hampshire EB-5 Regional Center LLC.

For resort, overseas hopes

‘Immigrant investors’ will be able to get green cards

By Ben Leubsdorf / Monitor staff

October 16, 2011

Brian Judkins works machinery down at the bog of Ragged Mountain Resort on Friday, October 14. Ragged Mountain Resort is currently working on phase one of renovations after being approved for the EB-5 Program. Ragged Mountain Resort is expected to raise at least $35 million in new investment through the EB-5 program to renovate, expand, develop and operate the ski resort, creating at least 700 new jobs.

The owners of the Ragged Mountain Resort are looking to sign up deep-pocketed Chinese and other foreign investors to finance a $35 million expansion at the Danbury ski area and golf course.

And they’re offering more than potential future returns. Using a federal program intended to attract “immigrant investors,” the resort can offer green cards to foreign nationals who invest at least $500,000 so they and their families can relocate to the United States.

“It’s attracting foreign investment. But more importantly, it’s allowing these companies to do job creation – which, in our economy, is a prevalent issue,” said David Strong, chief operating officer of Utah-based developer Pacific Group.

Ragged Mountain was purchased in 2007 by a Pacific Group affiliate. The company has made improvements to the resort since then, and has worked with town officials on a long-term expansion plan.

The first phase, with a total price tag of $35 million, calls for replacing the lodge and adding a 40-unit hotel, condos, a spa and other facilities. Some $24.4 million is earmarked to add a new ski lift, install a mountain coaster, create a mountain-bike course, improve the golf course and make other upgrades.

But the plans have been on hold due to the economy. Strong said banks have “tightened their level of wanting to lend” in recent years.

Since last year, the resort’s owners have worked with the state and federal governments to have the resort designated as an eligible project for what’s known as the EB-5 visa program. The program was created in 1990 “to stimulate the U.S. economy through job creation and capital investment by foreign investors,” according to the U.S. Citizenship and Immigration Services website.

Gov. John Lynch and George Bald, commissioner of the Department of Resources and Economic Development, both sent letters to federal officials supporting the designation for Ragged Mountain and its surrounding towns.

“In a market like this, where it’s difficult to get capital, it’s a great alternative,” said Michael Bergeron, business development manager at the department. “And a lot of these projects are in areas around the U.S. that are rural, they have high unemployment . . . so it’s a great way to bring capital and create jobs in places that really need help.”

Under the EB-5 program, foreign nationals must invest at least $1 million – or $500,000 for projects in rural areas like Danbury – in a designated project, creating at least 10 full-time jobs in the area. In return, the investors, their spouses and unmarried children under 21 can get green cards allowing legal residency in the United States.

In 2010, 1,885 visas were granted under the program, down from 4,218 visas in 2009 but up from 1,443 visas in 2008, according to the department.

Any investors in Ragged Mountain won’t be required to live in New Hampshire; the green cards don’t restrict where they reside. The application process includes background checks, Strong said.

“This is ideal for the EB-5 program,” he said of Ragged Mountain. “The nature of the real estate, the nature of the resort, the overall asset as a whole is very appealing for foreign investors.”

The federal government approved the designation last month. Pacific Group has created the New Hampshire EB-5 Regional Center to run and promote the program, with Strong as its president.

The center’s website, newhampshireregionalcenter.com, comes in two languages: English and Chinese. Strong said Chinese investors are the project’s main target, though there has been interest in EB-5 investments in England, India, Russia and South Korea as well.

“In the Chinese markets, they enjoy real estate. And specifically, if we look at the United States, they see it as a great investment opportunity because of the distressed real estate markets,” Strong said.

A trip to Beijing, Shanghai and other Chinese cities for company and resort officials to meet with potential investors is planned next month, he said. The company’s “conservative estimate” is to raise the entire $35 million within 16 months, he said.

Bergeron said Ragged Mountain is the first New Hampshire project to participate in the EB-5 program, though two others, one in Plymouth and another in southern New Hampshire, are in the process of seeking approval.

The resort’s owners have spent years working with Danbury’s planning board on a long-term framework covering development on the mountain, though individual phases have to come back to the board for final approval, said Bernie Golden, chairman of the town’s board of selectmen.

Golden said the town has been careful to make sure there isn’t “uncontrolled growth” on the mountain that could stress infrastructure and services in the town of 1,164 as of last year’s U.S. Census. He said the plan is to eventually build 800 units, mainly second homes, on the mountain.

“Generally speaking, the town is supportive of Ragged’s efforts,” Golden said. “They’re the largest employer in town and they’re the largest taxpayer in town, and we see this as a financial plus for the town when and if they move forward with their plans.”

Photo: Ski Resort in NH

EB-5 Fundraiser Event Friday

Katie Rapone — Mon, 17 Oct 2011 20:00:13 +0000

A press-release from PRWEB announces IIUSA’s EB-5 Fundraiser event this coming Friday in San Antonio, Texas. NES Financial is sponsoring the event which will raise money in an effort to make the EB5 Visa Program permanent.

NES Financial Supports Efforts to Make the EB-5 Program Permanent through Upcoming IIUSA Event

IIUSA Organizes Fundraising Event to Raise Funds to Strengthen Advocacy Efforts to Make the EB-5 Program a Permanent Economic Program in the U.S.

San Jose, CA (PRWEB) October 12, 2011

NES Financial, the nation’s leading provider of EB-5 escrow administration services, is supporting IIUSA’s efforts to make the EB-5 program permanent by sponsoring IIUSA’s Permanent EB-5 Fundraiser Event on Friday, October 21, in San Antonio, Texas. The proceeds raised from the event will be donated to IIUSA’s Leadership Fund.

The EB-5 program is set to expire September 9, 2012, unless Congress reinstates the program.

“The EB-5 Visa program has received numerous extensions over the years because of the value it continues to provide to the U.S. economy. We believe that the EB-5 Visa program should be made permanent,” said NES Financial’s CEO Michael Halloran. “The EB-5 program benefits the U.S. economy by providing funding for development projects and creating American jobs. Our EB-5 solution ensures that investors’ funds are secure. It also improves the operating efficiency of the Regional Centers during the project’s capital raise.”

The EB-5 program, created by Congress in 1990, encourages foreign investment in government-approved projects that create U.S. jobs. A foreign investor is required to invest a minimum of $500,000 in a federally approved project, and Regional Centers hold each applicant’s deposit in escrow pending approval of the investor’s Form I-526 application by the U.S. Citizenship and Immigration Services (USCIS). Through the program, foreign investors are given the opportunity to become lawful permanent U.S. residents. NES Financial’s EB-5 Escrow Administration Solution has been widely adopted by leading Regional Centers.

For more information on NES Financial’s EB-5 solutions and best practices, click here.

About NES Financial
NES Financial is a leading provider of trust and escrow administration technology and services for banks, financial institutions, and Fortune 500 companies. NES Financial is the nation’s leading provider of EB-5 escrow administration and 1031 exchange services. The company’s state-of-the-art virtual private cloud-based solutions provide banks and financial institutions with increased fee revenue opportunities, reduced compliance costs and improved operating efficiency. NES Financial focuses on business sectors with complex processes, significant compliance requirements, and large sub-accounting needs, including landlord/tenant security deposit escrows, client trust accounts, capital raises, pre-need trusts and many more.