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Overview of EB-5 Program

Overview of EB-5 Program. Created in 1990 by Congress to stimulate economy, bring new investment capital and to create new jobs Expanded in 1992 to allow investors to invest in Regional Centers 10,000 available per year No country restrictions/limitations

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Overview of EB-5 Program

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  1. Overview of EB-5 Program • Created in 1990 by Congress to stimulate economy, bring new investment capital and to create new jobs • Expanded in 1992 to allow investors to invest in Regional Centers • 10,000 available per year • No country restrictions/limitations • Approved investors receive initial 2-year conditional residency (permanent after 2 years)

  2. 3 Elements: Commercial Enterprise • Have invested, or are actively investing, in a new commercial enterprise • Established after 11/29/1990 or • Established before 11/29/1990 and: • Reorganized to become a NCE or • Expanded through investment so that +40% increase in net worth or employees, or • Troubled business • 2+ year old business with net loss of +20% during 12-24 months before PD • Commercial enterprise: For-profit activity formed for the ongoing conduct of lawful business (i.e., Corp, LLC, etc.) • Active management

  3. 3 Elements: Job Creation • Create or preserve 10+ full-time jobs for U.S. workers w/in 2 years of receiving CPR • 10 indirect jobs if investing through Regional Center • U.S. Worker = U.S. citizen, lawful permanent resident or persons with employment authorization • Jobs for investor’s family or those with non-immigrant visas (i.e. H-1B) do not count

  4. 3 Elements: Capital Investment • $1 million USD • $500,000 USD if • Rural Area: outside metropolitan statistical area or city/town boundary with population of 20,000+ • Targeted Employment Area: rural area or unemployment +150% national average (designated by state) • 3,000 visas available for TEA investors • Capital • Cash, equipment, inventory, tangible property, cash equivalents, secured promissory notes (Matter of Hsiung) • Assessed at FMV • Personally and primarily liable (cannot be borrowed) • Placed at risk of loss • No unlawful means

  5. Regional Centers • RC’s were created under the Immigrant Investor Pilot Program in 1992 and has been extended through 2015 • RC = public or private entity involved with the promotion of economic growth, improved regional productivity, job creation and increased domestic capital investment • Examples: commercial real estate; infrastructures; agricultural & farming; equity funds • RC’s have projects that investors can subscribe to • Currently almost 400 RC’s in the United States

  6. Regional Center Requirements • Must focus on a contiguous U.S. geographic area • Promote economic growth • Demonstrate how jobs will be created • Commit funds to promote and oversee capital investment opportunities in RC

  7. Advantages of Regional Centers • $500,000.00 investment v. $1 million • No day-to-day management of operations • 10 indirect jobs(vs. direct jobs) • Collaterally related jobs as a result of capital invested in a commercial enterprise affiliated with a regional center by an EB-5 investor • U.S. residency for investor, spouse and children under 21

  8. E-2 Investor Visa • Eligible countries: • Canada, Taiwan, Japan, S. Korea, Singapore, Philippines, Thailand & Iran and more • Ineligible countries: • China, Hong Kong & India • Invest substantial capital in new or existing business • Advantages • Lower investment amount; work permit for spouse; children can attend school; don’t have to report worldwide income • Disadvantages • Limited countries; no path to GC; renew every 2 years

  9. About the authorCedric M. Shen is a U.S. & Canadian immigration attorney with offices in Los Angeles and Vancouver. He has been licensed to practice U.S. immigration law in all U.S. states since 2004. He is also licensed to practice Canadian immigration as a Regulated Canadian Immigration Consultant. Los Angeles 3424 Wilshire Blvd, Suite 928Los Angeles, California 90010 Vancouver #720-999 West Broadway Vancouver, B.C. V5Z 1K5 310 591 8200 | U.S.604 288 7771 | Canadacedric@maxlawinc.com www.maxlawinc.com | www.CanadiansInUSA.com

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