A proposed bill was recently released by Senator Patrick Leahy (D-VT) requesting renewal and changes to the EB-5 Visa Program. While the nearly 80-page bill covers a variety of topics regarding the EB-5 investment, the main changes relate to the investment amount itself. EB-5 projects located in Targeted Employment Areas (TEAs) and Regional Centers would increase to $800,000. Direct EB-5 investments not located in a TEA would increase to $1,200,000. Other changes to the program include variations to counting indirect job and changes to the TEA designation process. The EB-5 Visa Program is due to sunset in September, and will likely be renewed with these proposed modifications. If potential EB-5 investors wish to take advantage of the current reduced EB-5 investment of $500,000, they should contact an EB-5 immigration attorney immediately to begin the EB-5 visa process. Petitions will need to be submitted before September 30, 2015, or investors may face the increased investment of $800,000 for TEA investments and $1,200,000 for non-TEA EB-5 investments. Contact EB-5 immigration attorney Kyle Barella to receive a free EB-5 consultation from Barella Law, P.C. Our EB-5 lawyers and professionals can assist potential EB-5 investors throughout the entire investment process. We are conveniently located in Northern VA, just outside of Washington, DC. Kyle Barella | [email protected] | +1 202.621.3198 | www.eb5investmentlaw.com
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Considering Immigration Through the EB-5 Visa? Now is the Time to Make an EB-5 Investment.14/5/2015 By: Kyle Barella Have you and your family been considering immigration to the United States by way of the EB-5 Visa Program? EB-5 immigration is a complex area of U.S. law, and you should seek the advice of an experienced EB-5 attorney if you are exploring the possibility of investing in United States. The EB-5 Visa Program is a path to a U.S. green card through investing $1,000,000 into a U.S. business, in turn creating ten full-time jobs for qualified citizens and permanent residents. Alternatively, an EB-5 investor can choose to invest $500,000 in a Regional Center project or a direct TEA project. Both scenarios lead to a green card. Why now is the time to make your investment. In just a few short months, in September 2015, the EB-5 Regional Center Program, which allows for the reduced investment of $500,000, is due to sunset. While it’s more than likely Congress will renew the program, there are serious talks the investment amount will be increased. As it stands, both a Direct EB-5 investment and a Regional Center investment can be reduced to $500,000 if the EB-5 project is located in a Targeted Employment Area (TEA). Washington politicians have discussed plans to increase the TEA investment amount to $800,000. This nearly doubles the current TEA investment amount of only a half-a-million. Some politicians, including Republican presidential-nominee hopeful, Jeb Bush, have called for the entire Regional Center / TEA EB-5 option to be eliminated. As a result, all investors would be required to make a direct $1,000,000 EB-5 investment. While increasing the investment amount to $800,000 is only speculation at this point, there is strong support among certain members of congress to raise the EB-5 investment threshold. Potential immigrant investors are encouraged seek out a qualified EB-5 attorney and get started on their investment today. Though the EB-5 visa is here to stay, the reduced investment has an uncertain future. On January 28, Barella Law, LLC spoke to a group of Quebeckers at the annual Conférence Snowbirds en Floride (Snowbirds Conference in Florida) in Aventura, Florida. The conference was a great opportunity to explain the different immigration options Canadians have to enter to the US. We also had the opportunity to meet others in professional industries that serve snowbirds in Florida. Along with our immigration firm, other speakers included a CPA, insurance representative, financial planner, and a Québec attorney. The conference attendees were very receptive and eager to ask questions. Barella Law, LLC continues to promote and build a relationship with our clients in Québec, as well as other parts of Canada, and around the world. We look forward to hopefully participating in next year’s conference. EB-5 investors are becoming increasingly aware of the Securities and Exchange Commission (SEC), the top U.S. securities regulator, and its involvement in the EB-5 Visa Program. As a result, investors are anxious to learn the connection between the nation’s financial watchdog and the immigration program. Created by the Securities Act of 1934, the SEC was designed to protect investors from fraud by enforcing securities laws requiring complete disclosure of information and regulating the people involved in the securities transactions. Attorneys handling EB-5 Visa clients should be prepared to provide a competent explanation on both immigration and securities issues involved in the EB-5 process. In the past, securities law was considered a specialty area of law reserved for large firms in cities such as New York. However, at present, to practice as an EB-5 attorney, it is important to have at least a minimum understanding of the U.S. securities law. The SEC defines a security as any stock, bond, debenture, note, transferable share, investment contract or certificate of interest in a profit-sharing agreement. In general, all securities offered in the United States must be registered with the SEC and comply with the regulations, or be eligible to claim an exemption from registration. A typical EB-5 Regional Center Project is structured in the form of a Limited Partnership and according to SEC, interest in the partnership is an investment contract and therefore, a security . To further elaborate on the term “investment contract”, the Supreme Court of the United States determined the definition in the landmark case of SEC v. Howey. According to the Supreme Court, an investment contract is any transaction in which (1) a person invests money (2) in a common enterprise (3) is led to expect profits and (4) solely from the efforts of others. The four elements combined are commonly referred to as the Howey Test and are used to determine whether an instrument qualifies an investment contract. The first element is interpreted as the investor not purchasing a consumable commodity or service, rather, making an actual bona fide at risk investment. The second element of commonality is determined by multiple investors having interrelated interest in a common scheme (it is sufficient if a single investor has a common interest). The third element of expectation of profits is interpreted as expected returns must come from the earnings of the enterprise. Lastly, earnings must come from the efforts of others, this is broadly construed to mean that the efforts of managers must predominate over the passive investor. EB-5 Regional Center Projects structured as a Limited Partnership meet all 4 elements of the Howey Test and are therefore defined as an “investment contract”. Foreign investors (1) invest at minimum $500,000 (2) into a common enterprise, Limited Partnership, (3) with an expectation of returns on the investment and (4) through the efforts of the managing partner. Simply meeting the definition of a security is just the beginning of the complex regulations of U.S. securites. In our next blog, we will elaborate on the scope of the regulatory authority of the EB-5 Visa Program by SEC. For more information on the EB-5 Visa and SEC compliance, please contact our office today. Barella Law, LLC | + 1 (202) 621-3198 | [email protected] | www.eb5investmentlaw.com 9128 Strada Place | Suite 10115 | Naples, FL 34108 The Information contained in this blog is for information purposes only, and should not be considered legal advice for any individual case or situation. The information provided is not a substitute for consultation with an attorney. No attorney/client relationship is created by the information contained herein. Does the EB-5 program allow potential immigrants to “cut” to the front of the immigration line? The answer is a definitive, no. Believed by many to be a shortcut to US permanent residency, the EB-5 program is not a line-cutting program. In fact, the US Government sets aside each year, 10,000 visas for EB-5 investors. Of the 10,000 visas, 3,000 are set aside for investments made in Target Employment Areas (TEA). As the government specifically sets these visas aside, it’s not possible for EB-5 investors to steal visas from other immigrants or jump to the front of the line. Compared to other countries around the world that utilize a point system for immigration, the United States does not have such a program. Unless a potential immigrant has a job or family member available to sponsor them, there are limited options for obtaining US Permanent Residency. The EB-5 Visa Program allows these immigrants with limited options to legally move to the US. This misconception that EB-5 investors “buy” their way into the US at the expense of immigrants of lesser means is outdated and simply incorrect. The government implements visa quotas, which allow each visa category a limited number of spaces. The benefits of the EB-5 program provide immigrants with a chance to live, work and study in the US, with the added benefit of their investment contribution leading to the growth of the US economy. Barella Law, LLC | + 1 (202) 621-3198 | [email protected] | www.eb5investmentlaw.com 9128 Strada Place | Suite 10115 | Naples, FL 34108 The Information contained in this blog is for information purposes only, and should not be considered legal advice for any individual case or situation. The information provided is not a substitute for consultation with an attorney. No attorney/client relationship is created by the information contained herein. Perhaps the most important aspect of any EB-5 Petition is the Lawful Source of Funds requirement by USCIS. For apparent reasons, USCIS must ensure that every petitioner has acquired the funds to make their EB-5 investment through lawful means. Given the different accounting and taxing principles around the world, this sometimes proves to be difficult to trace. Through no fault of the attorney or investor, some countries simply do not practice the standard of record keeping required by USCIS. This hurdle may be overcome by providing affidavits and other evidence and documentation to get around the deficiency. Communication between the client and the attorney is most crucial during this stage of the EB-5 process. An attorney may only perform his/her job when the client has made a complete disclosure of their source of funds. USCIS needs to see the money traced back to its origin. For example, if an investor claims to have gained the funds for the investment through the sale of a property, he must show more than just the bill of sale for that property. USCIS will want to see that he was in fact the owner of the property, and owned it for a reasonable time. This may be proved by the investor providing his original purchase agreement, or other evidence to prove ownership. Although the EB-5 Investment is $500,000 for Regional Center Projects located in target employment areas, there are other costs associated with the investment. Generally an administration fee is assessed to the Petitioner. Although an attorney should not have to account for the administration fee in the Lawful Source of Funds, the trend among EB-5 attorneys has been to provide documentation accounting for that money. The last thing an attorney wants is to give USCIS an excuse to issue a Request for Evidence (RFE). Barella Law, LLC | + 1 (202) 621-3198 | [email protected] | www.eb5investmentlaw.com 9128 Strada Place | Suite 10115 | Naples, FL 34108 The Information contained in this blog is for information purposes only, and should not be considered legal advice for any individual case or situation. The information provided is not a substitute for consultation with an attorney. No attorney/client relationship is created by the information contained herein. By Anna Barella | CHOICE INVESTMENTS | www.adviseusa.com Earlier this week the team at Choice Investments attended a business-networking event hosted by the Québec-Florida Chamber of Commerce. At the event, we met local business owners originally from Québec, Canada now doing business in Florida, and in some cases those who still operate a business back home. The Québec – Florida Chamber of Commerce offers local and Québec businesses a unique ability to grow their business both in Florida and Québec. Each year, Florida welcomes over 800,000 snowbirds from Canada, and nearly a quarter of them hail from the Province of Québec. Every winter they typically spend anywhere between one and six months enjoying Florida’s beaches, shopping, dining and great weather. Many also invest in real estate, both residential and commercial properties. Last year alone, Canadians contributed over $4 billion to Florida’s economy. Many choose to legally reside permanently in Florida, either by immigrating or opting for non-immigrant status such as the TN or E-2 visa. Should the US Government pass the Immigration Reform bill, many Canadians will be allowed to stay in the US for up to eight months out of the year. The EB-5 Immigrant Investor Visa remains popular among Canadians wishing to permanently immigrate to the United States. By becoming a US permanent resident, the investor is able to take full advantage of business opportunities in the US and back in their native Canada. We saw first hand the success of Quebeckers creating a cross-border life for them self. Ultimately both the Province of Québec and the State of Florida benefit economically from entrepreneurial endeavors of the Québécois. The EB-5 Visa Program has a reputation of being a cash for green card business. Some view it as a system where wealthy individuals essentially buy their way into the United States. However, this misconception of the EB-5 program is inaccurate and has often led to negative press regarding the visa. While it is true that foreign nationals who invest through the EB-5 visa must furnish at minimum around $550,000 ($500,000 investment plus regional center administration fees and legal fees), not all of the investors come from extreme wealth. Many investors work hard to save the money over years, take out a loan (secured on assets) or inherit the money from family. These investors make sacrifices in their lives because they still believe in the “American Dream,” and understand that this country still has much to offer. The EB-5 Visa Program is beneficial to both the foreign investor and the US economy. Apart from creating ten jobs for US Citizens or Permanent Residents (A requirement for obtaining the EB-5 visa), these foreign nationals invest in real estate, contribute to the local economy, and enroll their children in university programs. Compared to other paths of obtaining permanent residency, the EB-5 visa comes with positive advantages for US citizens and our economy. A growing trend among potential EB-5 candidates is their discovery of the program through their student child. F-1 Student Visas are on the rise, and today more than ever, foreign students are coming to the US to take advantage of our educational programs. Often, when the student is finished studying their program they have no legal status to remain in the United States. Unless they secure a job that is willing to sponsor them, they must eventually return to their home country. Many students are doing their own research on the EB-5 Program, and encouraging their parents to make the investment on their behalf. It is important to note that unmarried children under the age of 21 may be included on their parents’ petition. For children 21 years and older, they must file their own EB-5 petition. Barella Law, LLC | +1 202.621.3198 | [email protected] | www.barellalaw.com 9128 Strada Place | Suite 10115 | Naples, FL 34108 The Information contained in this blog is for information purposes only, and should not be considered legal advice for any individual case or situation. The information provided is not a substitute for consultation with an attorney. No attorney/client relationship is created by the information contained herein. |
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