EB-5 and U.S. Securities Laws (Private Placement Law Handbooks Book 7)
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When more jobs are created under the USCIS rules, more investors can get visas, and therefore, more money can be raised.
It is also easier to use EB-5 when there is a substantial margin of safety in the job count in case anything goes wrong. Our developer clients say their top concern in pursuing EB-5 is to quickly determine if EB-5 will work for them before they spend a lot of time and money.
Read Online eb 5 and u s securities laws private placement law handbooks book 7 Pdf. Thu 22 Mar, 1/1. Read Online eb 5 and u s securities laws private. Placement Handbook Series file PDF Book only if you are registered here. to get Book file PDF Eb 5 And Us Securities Law Private Placement Handbook Securities Laws to the EB 5 Marketplace including direct and regional compliance with US private placements as lead Series 7 63 79 28 and
Assuming that it is feasible, they want to raise as much money as they can, at the lowest all-in cost to them, in the shortest period of time and with the greatest certainty of execution. As in any other line of work, a relatively small proportion of the players have the dominant experience, contacts and track record to deliver results that are vastly superior to others. Just look at the numbers and imagine how difficult it would be to randomly find the best match for a given deal.
In other words, there is an extreme concentration of experience and success amongst a very small number of the regional centers. Why have a virtual handful of regional centers raised such vast portion of the EB-5 funding? The top regional centers have been established for some time, have a strong infrastructure in both the United States and places where there is already an awareness of the EB-5 program opportunity, and strong interest in using EB-5 to migrate to the United States — places such as China and hot new markets such as Vietnam, Korea, Indonesia, Latin America and parts of the Middle East.
These established regional centers have built reliable marketing organizations and have worked out procedures, documentation, and logistics to evaluate new EB-5 projects. A substantial amount of work is required to underwrite a deal, consummate arrangements with the developer, prepare the project marketing program and materials, sell projects overseas, and get the funds released for deployment by the project. In addition to the transaction work of making deals and raising capital, the regional center must also insure compliance with securities and immigration laws.
Should I form my own regional center? Most developers should not form their own regional centers. Here are some of the relevant considerations for and against forming your own regional center:.
Perhaps you could have greater control over the fund raising process. You could hand-select the marketing agents who will sell your offering. This is a difficult, time-consuming and somewhat risky course to set unless the developer fully understands the nature of the commitment, effort and capital likely to be required.
Operating a regional center means running a complicated business that requires financial skills, a deep working understanding of the immigration business, and most importantly, establishing and maintaining a great network of contacts overseas in order to raise capital. The developer forming its own regional center will be competing with a handful of dominant players who have been established for many years as described in the immediately preceding section.
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These established, dominant regional centers have spent a vast amount of time and money to build their presence in China and other markets, along with their marketing organization, infrastructure, systems, forms and reputation amongst the EB-5 investor community. It can be daunting to compete with them in attracting immigrant investors for EB-5 capital.
An extraordinarily high percentage of developers who initially believe they want to form their own regional center and build their own EB-5 infrastructure will ultimately abandon their path. Although we can help clients establish a regional center and related infrastructure, developers need to understand this alternative involves setting up and operating an entirely new business — the immigration business.
It takes a long time to get regional center and project approvals and even longer to push projects all the way through the EB-5 pipeline so that you can show new investors that all your prior investors got their green cards. Most of our clients find that it is far better to connect with and rely upon well-established major players in the EB-5 financing chain.
Understand that you may be investing in a www. However, to ensure responsiveness and efficiency of the process, other analysts may assist the primary analyst. In addition, cities that have suffered the effects of declining population are rejuvenated by an inflow of Latino immigrants. If you have not received notification after seven business days, contact the Membership Gateway Call Center at Alexa Actionable Analytics for the Web. Applicants can use that. Meanwhile, Sethi and his companies have spent more than 90 percent of the administrative fees collected from investors despite their promise to return this money to investors if their visa applications are denied.
We serve as counselors to assist them through this process. What is a TEA? It is pronounced by naming each of the capital letters in its name, e. Every jurisdiction has its own rules for determining TEAs. Some, such as the State of New York, are extremely liberal. Other states, including California, are much harder to work with, but there are a variety of ways to configure a census map to qualify as a TEA.
Call an expert and see if we can get you a TEA designation letter for your project. How much money can I raise? There is nothing in the EB-5 regulatory scheme that sets a limit on the amount of money that can be raised for a project under the EB-5 program, except the requirement that at least 10 new US jobs must be created for each EB-5 investor within the specified time period. So the calculation of new US jobs is one of the most critical factors in determining the maximum amount of EB-5 financing.
As noted elsewhere, regional centers are often employed because where they are used, the new job calculation for EB-5 purposes is not limited to the direct, full-time employees with W-2s, as it would be otherwise. With a regional center, new jobs include direct jobs as well as indirect jobs and induced jobs. After the crucial jobs creation requirement, the other major factor affecting how much EB-5 capital can be raised is the attractiveness of the deal to your marketing organization and the EB-5 investors.
They want to see substantial equity and they want to see that all other parts of the capital stack are in place to help ensure that the project will be completed on a timely basis, and that at least the minimum number of EB-5 jobs will be created for all investors to qualify for their permanent visas. With good advice, the amount of money raised by EB-5 can be optimized with proper sizing and positioning of the capital stack and structure of the overall deal.
What are the 6 biggest mistakes developers make with EB-5? There are a number of mistakes developers often make with EB-5 financing. What are 6 of the most common mistakes? We find that too often, developers.
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JMBM specializes in representing top developers and projects where we have a high degree of confidence that the desired financing can be obtained and closed on optimum terms. In such cases, we can usually help our client to accomplish the following items, including sourcing the EB-5 capital:. This process also necessitates identifying, selecting, negotiating and coordinating with an immigration law firm, an economist, various hotel consultants and one or more regional centers to get your loan properly sized and documented.
As part of the financing process, for each EB 5 financing project we work with, each client and appropriate members of the EB-5 team to do the following:. We have a lot of practical experience in helping our developer clients raise EB-5 funding. If you would like some help to evaluate whether EB-5 could work for you, or what strategy is best for you, then give us a call. There is no cost for an initial discussion. For more information about EB-5 financing, including the latest updates, go to www. Essentials of EB-5 construction financing for developers.
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