Jul
    22

    RCBJ Retrospective: How IIUSA is Helping to Strengthen New EB-5 Markets, Encourage Market Diversification

    AllenHow IIUSA is Helping to Strengthen New EB-5 Markets, Encourage Market Diversification

    By Allen Wolff, IIUSA Associate Director, Marketing & Communications

    In today’s day and age (read: 2016), EB-5 stakeholders must embrace the new reality that investors from Mainland China will have to wait six years, at a minimum, before a visa number will be available for them to immigrate to the United States. The truth is, while investors wait, numerous events could occur that may imperil their Program eligibility and result in a loss immigration benefits.

    With recent data coming out of U.S. Citizenship and Immigration Services (USCIS) fortells a grim story of unpredictably long waiting list (nearly 22,000 pending I-526 petitions as of December 31, 2015), IIUSA is focused on alleviating this pressure of the backlog and further enhancing economic impacts for the Program

    A flourishing EB-5 Program of the future will feature not just more visas but a more diversified investor marketplace. To this end, IIUSA has taken a number of important steps by forming relationships with thought leaders from countries and regions with the highest potential and facilitating the free flow of information about developing EB-5 markets.

    Over the last few years, IIUSA has put into place an infrastructure through which the EB-5 industry can gain unique market insights about countries with growth potential. This is evident by the establishment of the Investor Markets Committee in July of 2014 and regular articles on growth markets in The Regional Center Business Journal as well as in newsletters to the membership and industry.

    IIUSA HelpingIIUSA recently released the first volume of the Investor Market Report, which includes both on-the-ground insights and comprehensive quantitative analysis of EB-5 investor trends. Every country in the world with EB-5 market data is assigned a “growth score”, allowing us to compare trends of various countries and regions against the average growth of the industry over various timespans. By crunching the numbers on comprehensive data-sets of both USCIS petition data as well as Department of State visa statistics, we can now visualize the influx of investment from around the world and extrapolate where growth may yet come. The annual report will help EB-5 stakeholders draw important conclusion that can lead to actionable steps by project sponsors to bring new investors through the Program.

    In addition, IIUSA’s “market outreach” initiatives are helping to create an open dialogue between our membership and those interested in immigrating the U.S. through the EB-5 Program.

    This summer, IIUSA will participate in several global events to promote EB-5 investment. IIUSA will present at the Investment Migration Forum (June 6-8) in Geneva, Switzerland and will lead a discussion about EB-5 investment and the role of U.S. immigration and investment professionals in the development of best practices for industry globally. Later in the month, IIUSA will host a booth at the SelectUSA Summit (June 19-21) in Washington, D.C., an event hosted by the U.S. Department of Commerce with the sole focus of delivering foreign direct investment (FDI) to communities around the country.

    What’s unique about these two events is they are a reflection of IIIUSA’s continued emphasis on the development of governmental and association-level partners.

    To continue to grow awareness and understanding of EB-5 on an international scale, especially in countries with explosive growth such as Brazil, Vietnam, Russia and Latin American markets, IIUSA identified the need to proactively engage and work with professional associations that have the same goals as its own. IIUSA’s new partnership with the Investment Migration Council (“IMC”), the host of the Investment Migration Forum and the worldwide association for Investor Immigration and Citizenship-by-Investment, is an example for how IIUSA can help generate new insights for its members and further develop international membership that will be to the benefit of the entire EB-5 industry.

    IIUSA’s expertise is consulted by U.S. consulates around the globe. As a trusted partner of the U.S. Department of Commerce, IIUSA helps answers fundamental questions posed by potential investors about the EB-5 Program. To help answer these questions, and promote the EB-5 Program generally, IIUSA’s Investor Market Committee will soon make public its “Investor Toolkit”, a short reference guide to getting started for potential investors.

    IIUSA’s expertise is consulted by U.S. consulates around the globe. As a trusted partner of the U.S. Department of Commerce, IIUSA helps answers fundamental questions posed by potential investors about the EB-5 Program. To help answer these questions, and promote the EB-5 Program generally, IIUSA’s Investor Market Committee will soon make public its “Investor Toolkit”, a short reference guide to getting started for potential investors.

    Lastly, after five years of hosting the EB-5 Market Exchange in the U.S., IIUSA has an opportunity to utilize existing business relationships to host its fall conference overseas going forward. Doing so would serve IIUSA’s strategic initiative to support existing investor markets and developing new ones that diversify origins of investors that participate in the EB-5 Program. The 2016 Market Exchange location will be revealed soon – so stay tuned!

    While a more inclusive and prosperous future for the EB-5 industry remains in the balance and industry observers do not yet know how or when the EB-5 Program will be reformed or if visa capacity will be expanded, it is crucial that efforts begin today to prepare for the future of the EB-5 Program. Ultimately, this means a sustained interest and confidence in the Program from investors from all around the globe.

    Jul
    21

    IIUSA Members: Advertise in the Chinese-Language Version of the Regional Center Business Journal

    PCNext month, IIUSA will distribute its Q1 issue of the Regional Center Business Journal (RCBJ), translated into Chinese, to over 50 China-based IIUSA members (hard copy) and over 1,000 individuals based in China (digital) as part of a multi-platform engagement with EB-5 Stakeholders in the Middle Kingdom.

    However, only IIUSA Members who contribute to Leadership Fund are eligible to advertise in this issue, and subsequent editions of the Chinese-language version of RCBJ.

    IIUSA has made its Program Champion levels more accessible than ever, with IIUSA’s enhanced referral program which allows both cash contributions and new member and/or fund contribution referrals towards enhanced membership categories.

    Click the link below to explore the benefits of becoming a Program Champion. If you’d like to join, or have further questions about advertising and other benefits of becoming a Program Champion, please contact Allen Wolff (allen.wolff@iiusa.org) or McKenzie Penton (mckenzie.penton@iiusa.org) or give us a call at 202-795-9669.

    PAC

    Jul
    20

    Save the Date! The EB-5 Industry is Coming to LA this October 10-11

    Event Header

    Join the Discussion on the Future of the EB-5 Program in LA this October!


    IIUSA Seal 2015 (jpeg) 360 x 360Invest in the USA (IIUSA), the EB-5 industry not-for-profit trade association, cordially invites you to join us in Los Angeles, CA from October 10-11, 2016 for the 6th Annual EB-5 Industry Forum.

    Attended by international investment and economic development professionals from around the world, the EB-5 Industry Forum is the year’s premier EB-5 conference focusing on educational and business development on a global scale.

    The brand-new Luskin Conference Center on the campus of UCLA in Westwood will be the location for this important event featuring panels on legislative and regulatory activities that will shape the future of the EB-5 Program.

    luskin

    UCLA Meyer and Renee Luskin Conference Center, the host venue for IIUSA’s 6th Annual EB-5 Industry Forum features 254 guest rooms and more than 25000 square feet of versatile and thoughtfully-planned event space. Room reservations at the Luskin Center at the group rate of $275 will be available on July 22nd.    

    The two-day conference features:

    • General Session/Breakout Panels on EB-5’s Hottest Topics: Hear from your industry peers on the topics including EB-5 legislation and regulatory reform, Program integrity, visa capacity and much more! Day one of the conference will feature two half-day sessions on the “in’s and out’s” of the EB-5 Program as well as in-depth training on due diligence for EB-5 practitioners.
    • Business Development Opportunities: Network with hundreds of global EB-5 stakeholders over multiple days at the industry’s cornerstone business development event! Sponsorship & exhibiting opportunities are available (see below).
    • Association and Industry Meetings: All IIUSA members are invited to listen in on committee meetings taking place on Monday 10/10. Committees include: Association Building, Banking, Best Practices, Budget and Finance, Compliance, Editorial, Investor Markets, Membership, Nominations, Public Policy, Public Relations and Technology.

    EB-5 Industry Forum: Overview & Registration

    Space at this year’s EB-5 Industry Forum is limited so purchase your tickets today!

    In addition, Continuing Legal Education (CLE) credits are available to conference attendees!

    Interested in speaking at this year’s conference? Have a good topic for panel discussion? Then use this form to submit your suggestions (only IIUSA members are eligible).

    sch

    Price

    Register Now! 

    *Early bird rate valid through August 15, 2016. All purchases are final, non-refundable and non-transferable.

    **Room reservations at the Luskin Center at the group rate of $275 will be available on July 22nd.**


    Are you Interested in Sponsoring the EB-5 Forum?

    Sponsoring IIUSA conferences are an excellent way to reach hundreds of EB-5 stakeholders including attorneys, regional centers and migration agents and attach your brand to the industry leading trade association.

    Aside from 23 exhibit booths, IIUSA also offers a number of non-exhibiting sponsorship opportunities that provide ample visibility and value.

    Got other ideas on sponsorships? We want to hear from you! IIUSA stands ready to work with all sponsors to ensure you get real value from sponsoring the Forum.

    Sponsorship Guide Graphic

    With questions, please contact Allen Wolff (allen.wolff@iiusa.org) or McKenzie Penton (mckenzie.penton@iiusa.org)

    Thank You Sponsors

    PG

    s

    Jul
    19

    Press Release: IIUSA Signs with EB-5 Industry Stakeholders in Joint Letter to Congress

    IIUSA Signs with EB-5 Industry Stakeholders in Joint Letter to Congress

    Association at forefront of consensus building with other industry leadersIIUSA Seal 2015 (jpeg) 360 x 360

    Washington, DC – Invest in the USA (IIUSA), the national not-for-profit industry trade association for the EB-5 Regional Center Program (the “Program”) joined with other industry stakeholder groups to send a joint letter to Congress on July 5, 2016. IIUSA and the other signatories [the U.S. Chamber of Commerce, EB-5 Investment Coalition, Real Estate Roundtable and the American Immigration Lawyers Association (AILA)] sent a letter to the House and Senate Judiciary Committee leaders and members expressing support for extending the Program and recommending reforms to enhance program integrity and effectiveness as an economic development tool.

    “This is a significant milestone for the industry,” said IIUSA Executive Director Peter D. Joseph. “It demonstrates to Congress that various stakeholders with a broad range of interests and priorities were able to reach consensus on the pressing issues of the Program. The letter sends a signal to Congress that the EB-5 Regional Center industry is serious about reform and ready and willing to work constructively with Congress to make reform and reauthorization a reality before the September 30 sunset date.”

    The letter highlights support for:

    • Integrity measures
    • Targeted Employment Area (“TEA”)
    • Policy & Investment Level Difference
    • Visa Capacity & Backlog Reduction
    • Grandfathering/Transition Period
    • Extension of the Regional Center program

    For more information on the letter and the industry consensus position on these issues, visit IIUSA’s website.

    Under EB-5, a program created by Congress with broad bipartisan support, foreign nationals who invest at least $500,000 or $1,000,000 in approved U.S. businesses are eligible for permanent residency if the U.S. government confirms that their investment created or sustained at least 10 American jobs within two years of the investment.

    Since 2008, EB-5 has generated over $13 billion in foreign direct investment (FDI), creating tens of thousands of American jobs each year. In 2015 alone, EB-5 investment supported $4.3 Billion in FDI.

    IIUSA looks forward to continuing this important work with other industry stakeholders and Congress to achieve reauthorization of the Program ahead of the sunset date. to ensure EB-5 investment endures as a modern economic development tool that uses globalization to solve the need for flexible and affordable financing for regional economic development projects throughout the country.

    ###

    Founded in 2005, IIUSA is the national not-for-profit trade association for the EB-5 Regional Center industry with a mission of advocacy, education, industry development, and research. The organization represents more than 275 Regional Centers and 200 Associate members, collectively representing big and small projects, urban and rural economic development, and industry sectors ranging from real estate and manufacturing to energy and infrastructure. IIUSA’s members are engines of economic growth and job creation, accounting for a vast majority of capital flowing through the Program. Learn more at IIUSA.org.

    Jul
    15

    U.S. Department of State Issues August Visa Bulletin Cutoff Date Remains Unchanged for Mainland China

    The U.S. Department of State – Bureau of Consular Affairs released its Visa Bulletin for the month of August 2016 (View PDF). The bulletin revealed a cutoff date of February 15, 2014 for Mainland-China born visa applicants. For the second month in a row the cutoff date has  remained unchanged.

    As of August 1, Chinese investors who filed their I-526 petitions before February 15, 2014 will be eligible to schedule interviews with Department of State Consular offices and be issued conditional immigration visas to enter the U.S. or apply for adjustment of status if they are already in the U.S.

    Action dates for other countries remain current, allowing qualified applicants from other parts of the world to move forward with obtaining their EB-5 visa.

    United States Department of State Bureau of Consular Affairs August 2016 Visa Bulletin

    Visa Bulletin

    Jul
    14

    RCBJ Retrospective: Optimize Your EB-5 Operations with Tech Tools & Data

    Lee LiIIUSA Member Resources: Optimize Your EB-5 Operations with Tech Tools & Data

    by Lee Li, IIUSA Policy Analyst 

    A key operational priority for IIUSA is to maintain a comprehensive library of up-to-date intelligence to ensure our membership, and the public at-large, remain focused on the “big-picture” elements affecting the EB-5 industry. Moreover, IIUSA continues to make searching and utilizing its technology tools easier and more accessible, thus empowering EB-5 stakeholders to better utilize the Program.

    Over the years, IIUSA has developed a wide variety of tools and to help its members maximize their business’ EB-5 know-how. Since the creation of the Technology Committee in 2014, IIUSA has devoted significant “sweat equity” into developing its new website (iiusa.org), online Member Portal, interactive EB-5 maps, a digital data dashboard display of EB-5 data, the “EB-5 on the Go” mobile app – and other key technology tools.

    Stay Informed on the Latest Industry Trends

    EB-5 Program statistics are made available to the public by U.S. Citizenship and Immigration Services (USCIS) and Department of State (DOS) on a quarterly and annually basis. Since IIUSA keeps track of and analyzes all EB-5 Program data, members can rest assured that insights into the latest investor markets and policy trends will be at the fingertips at all times.

    1-2We recommend bookmarking the EB-5 Statistics page (iiusa.org/us/eb5stats) (1) and the EB-5 Industry Data Library (2) at the Resources Center within the Member Portal to track all EB-5 Program statistics, including in-depth data reports on I-526/829/924 statistics, processing times, monthly-updated Visa Bulletin, EB-5 visa usage charts, and more.

    In addition, IIUSA’s EB-5 online Data Dashboard (iiusa.org/us/datadashboard) (3) consolidates notable industry data points into a single page for you to review, share, and even embed into your own website.

    Lastly, IIUSA’s Investor Origin Map (4) launched in 2016 giving users a unique visualization of EB-5 investor market growth from 1992 to 2014. This map will be updated each year when new data becomes available.4

    3


    Expanding Your Business Connections

    IIUSA fosters a sense of community among our wide variety of EB-5 professionals, ranging from Regional Centers/developers, immigration/securities attorneys, economists, intermediaries and others. IIUSA technology tools help our members better identify and connect with EB-5 professional that can benefit their business.

    The IIUSA Member Directory (member.iiusa.org/directory), (5) locate within the Member Portal, consists of over all 500+ member organizations, including contact information for 1,200+ EB-5 professionals. We make it easy to search the entire IIUSA member database by location and/or industry and advanced filters to locate potential partners by the approved geography and industry.

    5

    6-7-8EB-5 Advocacy: We are All in this Together9-10-11

    IIUSA has been at the forefront of providing EB-5 professionals the advocacy and public affairs tools to help promote local economic development and push forth the Program in a positive light. Using the Advocacy Toolkit,(6) you will find a repository of EB-5 legislative proposals, written testimonies of EB-5 congressional hearings, reports conducted by third-party research institutions, national resolutions in support of EB-5 and all other documents, templates, tools to assist with your advocacy efforts.

    Also, IIUSA’s Legislative Action Center (iiusa.org/us/legislative-action-center/) (7) features key issues about industry consensus policy positions on EB-5 from which you can also contact your congressional representative(s) and make your voice heard.

    IIUSA’s Public Relations Committee cultivates a Media Toolkit (iiusa.org/us/media-toolkit/) (8) for our members to streamline the public dissemination of their EB-5 business. Resources include sample press release templates, project tombstone templates, slides template to present your EB-5 project, as well as the best practices on working with media and placing stories.

    Sharing EB-5 Knowledge with your colleagues and partners

    At the EB-5 101 (9) and the Webinar/Conference Library (10) in the resource center of IIUSA’s member portal, you will find a variety of educational resources including reports, fact sheets, presentations slides and more for you to bring your new staff members up to speed on the fundamental concepts and key terms in the Program.

    The EB-5 Media Coverage section (11) within the Member Portal bring you a curated list of news articles written about the EB-5 Program. This up-to-date list is a reminder that EB-5 is a catalyst for economic development, all around the country.

    Interested in attending events? (12) Look no further than the EB-5 Industry Event Calendar on IIUSA.org, featuring domestic and international events, USCIS stakeholder engagements, other industry educational seminars/webinars, trade missions, and more.

    12

     

    Jul
    13

    IIUSA Executive Director to Speak at 2016 New York EB-5 & Investment Immigration Convention Next Week

    EB5invesdtorsOn Monday July 18th, IIUSA Executive Director Peter D. Joseph will be speaking on a panel titled The Future of EB-5 at the 2016 New York EB-5 & Investment Immigration Convention, hosted by EB5 Investors Magazine. The focus of the discussion will be on recent efforts by the leading industry advocacy and trade organizations to speak with one voice to Congress and show them the industry is prepared for serious and constructive negotiations to extend and improve the EB-5 Regional Center Program (the “Program”). Mr. Joseph will be joined on the panel by IIUSA board member Daniel J. Healy (Civitas Capital Group), IIUSA President Emeritus Stephen Yale-Loehr (Miller Mayer LLP) and IIUSA members Linda He (Wailian Overseas Consulting Group), Jeff Campion (Pathways EB-5) and Laura Reiff (Greenberg Traurig, LLP).

    Also speaking at the event is U.S. Citizenship and Immigration Services (USCIS) Immigrant Investor Program (IPO) Chief Nicholas Colucci. Last month, Chief Colucci addressed a large group of U.S.-based economic development professionals and foreign investors at the SelectUSA Investment Summit in Washington, D.C. on the basics of EB-5 investment. EB-5 stakeholders will be eager to hear directly Chief Colucci about potential regulatory reforms following Department of Homeland Security (DHS) Secretary Jeh Johnson’s June 30th testimony in front of the Senate Judiciary Committee in which he stated that USCIS intends to publish proposed new EB-5 regulations in November for public comment.

    The convention begins Sunday July 17th with workshops for attorneys, regional centers and migration agents and continues with a full day of breakout panels on Monday July 18th. This event provides an essential opportunity for EB-5 industry stakeholders to convene in advance of the Program’s September 30th “Sunset Date”. A full schedule listing including speakers, itinerary and registration options can be found here.

    Jul
    12

    Contact Your Legislators with Joint Industry Letter on Reauthorization and Reform of the EB-5 Regional Center Program

    IIUSA Seal 2015 (png)Make the Voice of EB-5 Heard: Send Joint Industry Letter to Your Congressman and Senators

    As Congress heads back home for summer recess, it is a critical time for the EB-5 Regional Center industry to engage in grassroots advocacy to succeed in reauthorization of the EB-5 Regional Center Program (the “Program”).

    Last week, IIUSA joined with other leading EB-5 industry stakeholders in sending a letter to Congress urging for long-term reauthorization and responsible reform to the EB-5 Regional Center Program. The letter, available here, is the result of an important consensus-building strategy by IIUSA, the U.S. Chamber of Commerce, Real Estate Roundtable, EB-5 Immigration Coalition and American Immigration Lawyers Association (AILA), the leading industry advocacy and trade organizations, to speak with one voice to Congress and show them we are prepared for serious and constructive negotiations to extend and improve the Program.

    Members of Congress respond best and are more likely to act when they hear from the people who elect them to office– you, their constituents. We need you to carry this important message of unified support directly to your elected officials in Congress and let them know how important this issue is to you and their district/state. Please take 3 minutes of your time to send messages to your Congressman and two Senators urging them to strongly support reauthorization o the EB-5 Regional Center Program ahead of its sunset date of September 30. If you live and work in different Congressional districts, be sure to send the letter to both representatives.

    To find your elected officials and send them a message, click here. Please note that you cannot include attachments in emails to Congress, so be sure to include the link to the letter on IIUSA’s website by using this link.

    Additionally, below is some sample language to include with the email when writing your legislators. If you have any questions, do not hesitate to reach out to IIUSA at advocacy@iiusa.org.

    Again, it is crucial that members of Congress understand the urgency to which the Program must be reauthorized ahead of September 30 as well as the importance of this joint industry letter. Use the summer recess (beginning later this week) to communicate with your legislators and do your part to ensure the Program secures no lapse, long-term reauthorization and responsible reform.

    Sincerely,

    Peter

     

     

    Peter D. Joseph
    Executive Director


    SAMPLE EMAIL TO CONGRESS:

    Subject: Support Reauthorization of the EB-5 Regional Center Program

    Dear ________ :

    I write to offer my strong support for the reauthorization of the EB-5 Regional Center Program, which Congress must reauthorize, and not allow to lapse, prior to its scheduled sunset date of September 30, 2016.

    A joint letter from the leading industry trade and advocacy organizations is available here: https://goo.gl/7nvKQv, which broadly represent the EB-5 industry. I share the view that the EB-5 Regional Center Program must be reauthorized and not allowed to lapse. I also share the view that reforms to the program must be effective and fair, and designed to encourage continued direct foreign investment in American communities, which annually creates tens of thousands of American jobs at no cost to the taxpayer.

    As an [EB-5 stakeholder], I have raised $XXX through the Program that has been put to use to develop [project description] in [your state/district]. Since the economic recession hit in 2008, the EB-5 Program has allowed me to complete economic development projects that are creating local jobs and economic activity. As my elected representative, I hope that you will strongly support reauthorization of the Program, and that you will work to ensure that any reforms to the Program will not diminish the economic potential of the program but rather make it more viable and sustainable for the long-term. I would welcome the chance to speak with you or your staff about the program, its impact in your state/district, and the potential positive and negative impacts that various legislative proposals will have on my business and the overall effectiveness of the program.

    I encourage you to read the joint industry letter and to urgently support reauthorization of the EB-5 Program before September 30. To read the letter, please visit this link: https://goo.gl/7nvKQv.

    Sincerely,

    YOUR NAME, TITLE, ORGANIZATION

     

    Jul
    11

    RCBJ Retrospective: Currency Exchange Fluctuation and “Return on Investment” in the EB-5 Investor Visa Program

    RCBJ 2016-Q1_Final-webCurrency Exchange Fluctuation and “Return on Investment” in the EB-5 Investor Visa Program

    by Vivek Tandon Esq, Founder and CEO, EB5 BRICS

    It is certainly no secret that China is by far the leading source of EB-5 applicants, and thus, insights about the Chinese market are covered extensively by EB-5 industry experts. However, recent retrogression issues with China is forcing more and more industry stakeholders to look at the so- called ‘emerging’ EB-5 markets such as India, Vietnam, and Brazil. There is growing demand for the EB-5 visa category from these countries as evidenced in the table below from U.S. State Department for Fiscal Years 2014 and 2015, which shows the increase in EB-5 visa applicants from the aforementioned countries, and judging from the escalation of EB-5 promotion activities in these countries.

    1

    One of the focal points of any conversation with investors from India, Brazil and Vietnam (aside from the primary objective of obtaining permanent U.S. residency) is the apparent low rate of return in EB-5 investments. It seems that EB-5 investments in the U.S. generally net 0.5-1.5% per year, compared to the 7-8% per year or more investors can earn in their home countries from fixed deposit accounts. However, in order to more accurately reflect return on investment in the EB-5 applicant’s home country one must address, compare and adjust for currency exchange rate fluctuation in the respective countries.

    The tables below show currency exchange rates over the last five years for the Indian Rupee, Vietnamese Dong and Brazilian Real as compared to the U.S. Dollar (“USD”) which naturally affects the value of the currency at a global level. Again, this is historical data and there is the possibility that such downward currency devaluation trend may not happen again in the coming years. One should also recognize that some or all of this loss in value of the home country’s currency when compared to the USD could have been hedged with forex futures and/or forwards.

    CURRENCY EXCHANGE FLUCTUATIONS per 1 USD for the period 2010 to 2015

    2

    The table on the above shows that the Indian Rupee has devalued from INR 44 to more than INR 66 as compared to the USD, losing more than 50% of its value over the last five years.

    The table below shows that the Brazilian Real has devalued from BRL 1.7 to almost BRL 3.9 as compared to the USD, losing almost 129% of its value over the last five years.

    The table below shows that the Brazilian Real has devalued from BRL 1.7 to almost BRL 3.9 as compared to the USD, losing almost 129% of its value over the last five years.

    The table on the left shows that the Brazilian Real has devalued from BRL 1.7 to almost BRL 3.9 as compared to the USD, losing almost 129% of its value over the last five years.

    The table on the left shows that the Brazilian Real has devalued from BRL 1.7 to almost BRL 3.9 as compared to the USD, losing almost 129% of its value over the last five years.

    In each of the three scenarios that follow, the general assumption is that the investor is in one country investing in another and once the investment is over the investor converts currency back to the “home” country where the investor presumably repatriates the money. Using the example of an EB-5 investor from India, the comparison then is to assume the investor is in India investing in India or investing in the US, but after the investment the investor converts the dollars back to rupees and compares the resulting value in rupees.

    And thus, as shown below, if an Indian investor was to invest INR 2.2 crores (equivalent to $500,000 at an exchange rate of INR 44 to 1 USD) in 2010 in an EB-5 investment in the US for a 5-year term at a very nominal 1% yearly rate of return (simple interest), the resulting value of that investment in Year 2015 would be $525,000, which when converted back to rupees at INR 66 to 1 USD translates to approximately INR 3.47 crores. In comparison, again assuming ‘simple interest’ (not ‘compound’ which might be the case in the home country) if the same INR 2.2 crores had been invested in India for the time period 2010-2015 at an average of 10% annual return on investment (Deposit Interest Rates in India have been in the 9-10% range from 2010 to 2015 http://capitalmind.in/2012/01/chart-of-the-day-bank-fd-rates-from-1976/), the resulting value of principal and interest in year 2015 would be INR 3.30 crores. Comparison of this to the INR 3.47 crores figure derived from the U.S. investment shows that the investor’s belief and perception of a higher ‘return’ by keeping capital invested in the home country may just be a fallacy.

    5

    Similarly, if a Vietnamese investor was to invest VND 9,745,000,000 (equivalent to $500,000 at an exchange rate of VND 19490 to 1 USD) in 2010 in an EB-5 investment in the US for a 5-year term at a very nominal 1% yearly rate of return (simple interest), the resulting value of that investment in Year 2015 would be $525,000 which when converted back to Vietnamese Dong at VND 22542 to 1 USD translates to approx. VND 11,834,550,000. In comparison, again assuming ‘simple interest’ if the same VND 9,745,000,000 had been invested in a fixed deposit in Vietnam for the time period 2010-2015 at an average of 10% annual return on investment (Deposit Interest Rates in Vietnam have ranged from 13.99 in 2010 to 7.80 in 2015 http://data.worldbank.org/indicator/FR.INR.DPST), the resulting value of principal and interest in year 2015 would be VND 14,617,500,000 for a gain of VND 2,782,950,000 or approx. $123,500. As such, an investor from Vietnam would have fared a bit better financially by holding that money in a Fixed Deposit Account in Vietnam for the 5-year period instead of the U.S. EB-5 Program.

    6

    On the other hand, if a Brazilian investor was to invest BRL 850,000 (equivalent to $500,000 at an exchange rate of BRL 1.7 to 1 USD) in 2010 in an EB-5 investment in the US for a 5-year term at a very nominal 1% yearly rate of return (simple interest), the resulting value of that investment in Year 2015 would be $525,000 which when converted back to the Brazilian Real at BRL 3.9 to 1 USD translates to approx. BRL 2,047,500. In comparison, again assuming ‘simple interest’ and ‘simple adjustments’ (not ‘compound’ which might be the case in the home country) if the same BRL 850,000 had been invested in Brazil for the time period 2010-2015 at an average of 10% annual return on investment (Deposit Interest Rates in Brazil have ranged from 11% in 2010 to 10% in 2015 http://data.worldbank.org/indicator/FR.INR.DPST), the resulting value of principal and interest in year 2015 would be BRL 1,275,000. As such, an investor from Brazil would have fared much better financially by investing in the U.S. EB-5 Program instead of holding that money in a Fixed Deposit Account in Brazil for the 5-year period.

    7

    Again, the analysis of the three different scenarios above is an ex-post analysis showing what could have happened over this particular 5-year period when subjected to currency rate fluctuations, which may never happen again or that could be reversed in the next 5 years. Clearly the 50% devaluation in India’s currency and the 129% devaluation in Brazil’s currency are very substantial factors that should have informed the investor’s financial analysis of whether to invest in the EB-5 program.

    Many other factors are relevant to “return on investment” considerations that are focused on comparing investment in the home country vs. investment in the EB-5 program. For instance,, an investor should factor in an estimated $75,000 in costs and fees associated with a regional center EB-5. However, in some cases that amount may be offset by a possible higher than 1% annual rate of return from the EB-5 investment. Also taken into account should be the tax consequences of the interest payments whether it be in the home country or the United States. Finally, while an actual monetary return can be a consideration when an investor is making an EB-5 investment decision, an investor should not lose sight of the real return on an EB-5 investment which is the ability for the investor and/or his or her family to live and work anywhere in the U.S. and possibly lowered costs for higher education, the benefits of which can pay for themselves many times over.

    https://www.eb5brics.com/eb-5-investor-visa-for-india/ 

     

    Jul
    08

    June Roundup: IIUSA Represents the EB-5 Industry at Events Around the Globe

    June was a busy month for IIUSA staff as they traveled the world promoting the EB-5 Program, sharing industry best practices and building policy consensus.

    IIUSA Executive Director Peter D. Joseph presented at the Investment Migration Forum in Geneva, Switzerland as well as a Baruch College EB-5 Investments event in New York City. Other appearances included IIUSA staff exhibiting at the 2016 SelectUSA Conference in Washington, D.C. and the AILA Annual Conference on Immigration Law in Las Vegas, NV

    Ahead of the September 30 “sunset” date for the EB-5 Program, IIUSA is delivering a message of self-regulation and consensus building to the industry and outside stakeholders and these four events offered the perfect platform to do so. As the legislative discussion surrounding the EB-5 Program builds over the coming months, IIUSA will continue to seek consensus amongst its members to engage in constructive policy discussions with lawmakers to secure a future for the Program.


    Investment Migration Council (“IMC”): The Investment Migration Forum

    June 6-8 | Geneva, Switzerland

    Bruno

    IIUSA Executive Director Peter D. Joseph with Investment Migration Council CEO, Bruno L’Ecuyer

    After formalizing a strategic partnership with IMC in March 2016, IIUSA was proud to partner with the IMC for its Inaugural Investment Migration Forum (the “Forum”). The event is the world’s largest independent forum on the subject of citizenship-by-investment and investor immigration. Renowned academics, government officials, representatives of international organizations, and leading professionals in immigrant investor and citizenship gathered in Geneva, Switzerland for the two and a half day event. The event covered a variety of topics with subjects of interest for the academic, professional and government community – with a particular focus on the future of migration-by-investment programs and need for global business standards, industry self-regulation, and transparency.

    IIUSA Executive Director, Peter D. Joseph, spoke on the kickoff panel titled “Immigration Policy and Investment Migration,” which featured other distinguished academics and industry professionals from around the world (including Ron Klasko, IIUSA Member and Chair of the American Immigration Lawyers Association (“AILA”) EB-5 Committee). Mr. Joseph’s presentation emphasized the importance of migration-by-investment programs as tools for national economic development policy. He noted that these policies, which have come of age in the last decade, bring challenges to the global industry that can only be overcome through education, self-regulation, and transparency through study…Learn More

    Steven L. Newman Real Estate Institute, Baruch College: EB-5 Investments: Unique Opportunities and Challenges
    June 16 | New York, NY

    Baruch

    IIUSA Executive Director, Peter D. Joseph, Mona Shah (Mona Shah & Associates), Ira Kurzban (Kurzban Kurzban Weinger Tetzeli and Pratt P.A.) Nima Korpivaara (David Hirson and Partners) and Former New York State Governor David Patterson participate on a panel “The Future of EB-5 & What we can Expect”

    On Thursday, June 16, the Steven L. Newman Real Estate Institute at Baruch College, in conjunction with IIUSA Member Mona Shah & Associates, PLLC, hosted an EB-5 conference titled: EB-5 Investments: Unique Opportunities and Challenges. The one day event brought professionals from across the industry together to discuss the current state of the EB-5 program and opportunities it presents for developers and investors.

    IIUSA Executive Director, Peter D. Joseph, participated in a panel along with IIUSA members, Mona Shah (Mona Shah & Associates), Ira Kurzban (Kurzban Kurzban Weinger Tetzeli and Pratt P.A.), Nima Korpivaara (David Hirson & Partners), and special guest, former New York State Governor, David Patterson. The panel, “The Future of EB-5 & What We Can Expect,” discussed the key issues facing the industry today and what it means going forward. Mr. Joseph’s remarks, from a perspective of a short time frame before EB-5 reauthorization deadline, focused on the imperative of finding industry consensus, constructively engaging with policymakers to address the major issues facing the industry today and self-regulation as a means of enhancing program integrity and effectiveness.

    The event featured over 20 speakers from throughout the industry including additional IIUSA members, such as: Larry Wang (Welltrend), Reid Thomas (NES Financial), Kurt Ruess (EB5 Diligence), ), George Olsen (New York City Regional Center), Richard Marquard (The LCP Group), Julia Park (Advantage America Regional Centers), Brian Ostar (EB5 Capital), Dawn Lurie (Polsinelli), Clem Turner (Homeier & Law), Jinhee Wilde (Wilde & Associates), Kristal Ozmun (Miller Mayer, LLP), Matthew Virkstis, (Greenberg Traurig), Jeffery Grasso (Silverstein Properties), Mr. Boyi He (Guangdong Entry & Exit Immigration Association), Kaymar Amiri-Davani (EB5 Investors Magazine), Michael Schoenfeld (EB-5 Affiliate Network), among other key stakeholders.

    The event, hosted at Baruch College where there is a course on EB-5, drew an international crowd of EB-5 regional centers, real estate developers, overseas real estate companies, migration agencies, educational organizations, law firms, wealth managers, students, brokers and more…Learn More

    SelectUSA Investment Summit
    June 19-21 | Washington, D.C. 

    Select

    IIUSA Associate Director of Marketing & Communications Allen Wolff (left) and IIUSA Advocacy Coordinator, Nicole Merlene (right) ready to talk EB-5 with foreign direct investment professionals from around the world at SelectUSA Summit

    IIUSA was proud to exhibit at the SelectUSA summit for the third year in a row and promote the EB-5 Program to foreign direct investment professionals from around the globe. Housed in the U.S. Department of Commerce, SelectUSA’s mission is to promote and facilitate business investment into the United States and IIUSA was honored to be able to represent the EB-5 Program and present the industry as a tool for 21st century U.S. Economic development through foreign direct investment.

    For the past three years the U.S. Commerce Department has hosted the SelectUSA Summit which brings together international companies, domestic economic development organizations (EDO’s) and other stakeholders to explore how foreign direct investment (FDI) can be utilized as a catalyst for economic growth and job creation in U.S. communities. This year’s event featured companies from over 70 international markets and welcomed over 2,500 attendees to the nation’s capital.

    President Barack Obama and Secretary of State John Kerry headlined this year’s event, among other administration officials, promoting the U.S. as the premier destination for foreign direct investment. In his remarks, President Obama stated:

    If you choose a place to expand your portfolio, to place your bets, to open up a plant, to start building the next great new business or service, you would select the USA — because nowhere in the world and never in history has there been a better place to grow your business.

    Mr. Nicholas Colucci, Chief, Immigrant Investor Program Office (IPO), United States Citizenship and Immigration Services addressed the audience during a panel titled “Welcome to the United Sates! Visas and Beyond,” which featured practical information for international investors considering the best options for coming to the United States. Chief Colucci addressed the role USCIS plays in the review of applications as well as job creation and “at-risk” requirements of the EB-5 Program… Learn More

    AILA Annual Conference on Immigration Law
    June 22-25 | Las Vegas, Nevada

    Each year, the American Immigration Lawyers Association (AILA) Annual Conference offers unmatched continuing legal education learning opportunities, great networking events, and nearly 100 exhibitors featuring the latest tools, technologies, and services for the immigration attorneys industry. With over 170 substantive sessions in fundamentals, intermediate, advanced, and masters-level tracks, the 2016 AILA Annual Conference continued this strong tradition.

    IIUSA members Bernard Wolfsdorf (Wolfsdorf Rosenthal LLP) and David Hirson (David Hirson & Partners) led a panel tilted “EB-5 Nuts and Bolts,” which discussed source of funds, evaluating Regional Center projects, visa backlog, child age-outs, country specific issues to consider, adjudication trends and legislative updates.

    Joining the nearly 100 exhibitors were IIUSA members American Life Inc, CanAm Enterprises, Civitas Capital Group, CMB Regional Centers, EB5 Global Inc, Go EB5 Regional Center LLC, Golden Gate Golden, Joorney Business Plans, Mount Snow, NES Financial, Related and Wright Johnson.

    In addition, IIUSA member CanAm Enterprises, LLC hosted a luncheon on the future of the EB-5 Program which included as speakers IIUSA members Dawn Lurie (Polsinelli), Enrique Gonzalez (Fragomen Del Rey Bernsen & Loewy LLP) Stephen Yale-Loehr (Miller Mayer), Ira Kurzban (Kurzban Kurzban Weinger, Tetzeli and Pratt P.A.) and Tom Rosenfeld (CanAm Enterprises, LLC)…Learn More