EB-5 Investments increase $400K after Nov. 21st. Can you get the work done in time?October 25, 2019
As a foreign national, living outside of the United States and considering risking a minimum of $550,000 in an immigration investment to achieve a United States green card under the EB-5 program, you can feel like there are more questions than answers. How much time are you going to need to be able to do the due diligence on a potential investment? What about the subsequent immigration petition filing? What information do you need? Is there enough time to file an EB-5 petition before the November 21, 2019 deadline when new regulations will drastically change EB-5? In a word, MAYBE. As you consider these questions, keep in mind the following;
- Choose an experienced regional center. Preferably one that has done this thousands of times successfully, like CMB Regional Centers (“CMB”).
- Choose a regional center that has a 100% project approval rating at the USCIS level and I-526 and I-829 stages, like CMB.
- Choose an experienced regional center that has achieved return of capital to an entire EB-5 partnership (not just individual investors) like CMB. CMB has achieved the return of capital by borrowers to entire partnerships numerous times with over $1 billion repaid by borrowers to its many partnerships.
- Choose an experienced immigration attorney, preferably one that has filed EB-5 petitions thousands of times. CMB can refer you to several such attorneys.
- Look at the underlying investment project being offered and ensure the job creation projections are solid, just as those offered by CMB.
- Look at the underlying investment project being offered and ensure the business plan is more likely than not to be successful, like those offered by CMB.
- Look at the underlying investment project being offered and ensure the developer has experience with EB-5. A developer with EB-5 experience that has returned capital to an entire EB-5 partnership, like the Hillwood/CMB EB-5 partnerships and other CMB developer borrowers can be a major advantage.
- Look at the underlying investment project being offered and ensure that it is qualified under the current TEA regulations as well as the new regulations to ensure the project can achieve full EB-5 funding, like CMB projects.
- Work with a regional center that follows all of the SEC laws and regulations, like CMB.
- Ensure the regional center has all the proper documentation immediately available, including having the partnership documents completed and prepared for prospective investors, like CMB.
- Work with a regional center that provides a “template” of the business documents required to file an I-526 petition and ensure the template will be available to you and your immigration attorney to file well before the deadline, like CMB.
- Work with a regional center that voluntarily commissions a third-party nationally recognized auditing firm to audit all its partnerships from inception to the present like CMB.
If one could find a regional center that has all the attributes described above we would recommend you consider them, if not consider CMB.
Assuming you have chosen CMB what do you need to do, and can it be done by November 21?
- Completely read the CMB offering documents from start to finish and understand you are entering into an EB-5 investment that requires the investment to be fully at risk. If necessary, hire a competent business attorney to review the documents with you. If necessary, get the documents translated into your own language. Bottom line, you must understand the investment and acknowledge that understanding via a signature on the partnership documents. The timeframe is completely up to the investor as there are many things to look at. Your review should include the economic impact analysis, the market feasibility study on the project, the private placement memorandum, subscription agreement, limited partnership agreement, TEA documentation, loan agreement, loan appraisal, and other documents provided on every CMB EB-5 project.
- Engage a competent immigration attorney experienced in filing EB-5 petitions. If you do not know of a competent immigration attorney CMB can refer a selection of qualified attorneys. It must be understood the immigration attorney represents you, not CMB.
- Begin gathering documents that prove that the $550,000 investment is coming from a lawful source.
- Transfer the $550,000 required investment amount into the CMB limited partnership account.
Returning to the question:
Is it possible to make your decision and file an approvable I-526 petition before the new regulations go in to effect on November 21, 2019?
The short answer is YES.
The longer answer is how long will it take you to do the above due diligence? As was stated before, this will vary by the business sophistication level of each and every investor. It goes without saying the sooner you begin the due diligence process, the better. Assuming you get the due diligence done and you are ready to sign the CMB partnership documents, it’s only a matter of days as all of the documents from CMB are ready to provide to your attorney for filing with USCIS.
The timeframe for engaging an attorney is up to you; and as stated before CMB can assist here.
Gathering the source of funds documents again is another time frame up to the individual investor. Are the investor funds straightforward and easy to prove or is it a more complicated situation that requires extensive documentation? Again these questions and timeframe can only be answered by the individual investor or their immigration attorney. Suffice it to say that here as in other areas, the sooner an individual gets started, the better are the odds of completing this prior to November 21.
The act of signing the partnership documents and funding the $550,000 again is a function of how long an investor may take. However, once those two final actions are taken it may be less than a matter of 24 hours that you could be accepted as a limited partner in a CMB partnership, and all documents can be provided to your attorney for filing your I-526 petition.
In as little as 24 hours CMB can have the EB-5 template for the project sent to your attorney. At this time it’s again in the hands of the immigrant investor and their attorney on how long it will take to get a petition on file. This is simply because the immigration attorney must gather all of the information from the investor and then build the I-526 petition to be filed with the USCIS.
Because CMB is completely ready with the projects in the marketplace today, we have established a self-imposed deadline of November 15th for an investor to complete their subscription as we believe this is the minimum amount of time that the attorneys that we work with could need to be able to get an I-526 petition on file before the deadline. It must be pointed out, waiting until this late date could result in not meeting the deadline. In following the theme of everything else, the sooner, the better.
CMB engages Prevail Capital, LLC, a broker-dealer registered with the SEC and a member of FINRA and SIPC, to be the administrative placement agent for all CMB EB-5 partnerships.
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