Regional Center News and Cautions

US Advisors (www.eb5info.com) has just issued another very interesting and informative newsletter. Follow the links below to read the stories.

Huge Chicago EB-5 Multi-Hotel Project Under Scrutiny by Investors
At $249.5 million, this multi-hotel EB-5 visa project will be one of the largest offerings the program has seen to date. But with overseas agents collecting exorbitant fees from the regional center, potential investors may be unaware that the promoters extolling the project have an enormous conflict of interest.
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China’s Migration Agents – Polarized by EB-5 Failures and Demands for Higher Commissions
According to Kevin Jeffers of Pinnint, Ltd., there is a growing culture of “profit at any cost” among many of China’s migration agents. “Performance claims continue to be exaggerated with risk understated,” he says.
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Four Conferences, Four Cities: EB-5 Visa Project Risk & Due Diligence Presentations
At a number of recent EB-5-related events, USAdvisors.org’s Michael Gibson spoke about EB-5 due diligence issues, their complexity, and the potential for failure in many EB-5 visa offerings. His notes and slides from these presentations are now available on our blog.
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Could a New Visa Law Affect the EB-5 Program?
A new bill would make it easier for foreign citizens to obtain U.S. tourist visas if they purchase homes costing $500,000 or more – with cash. Some are already saying that this measure could impact the EB-5 visa program.
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IIUSA Calls for Support Letters From EB-5 Advocates
In a recent message to members, IIUSA requested advocacy for EB-5 permanency: “In the past couple of years, the economic impact generated by [the EB-5 program] has become truly national in scope. Join us in telling that story to our legislators, so we can secure passage of the [EB-5 permanency legislation] and get about the business of creating U.S. jobs.”
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New Owner Means New Projects at One EB-5 Regional Center
With new ownership, the InvestAmerica EB-5 Regional Center (formerly Colorado Intercontinental Regional Center) will pursue completely different projects from the ones we reported on last year. Instead of turning Colorado timber into cellulosic biofuel, the regional center will move forward with one of the EB-5 program’s most popular investment types – hotel construction.
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More Ski Resorts? You Bet. New EB-5 Regional Centers Make Headlines
A menagerie of EB-5 regional centers received media attention this fall. As should come as no surprise, many of them will pursue real estate projects. A few will even have a go at what seems to be an EB-5 standby: the ski resort.
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Former USCIS Adjudicator Calls Material Change Prohibition “Onerous”
“The [material change] precautions have gone too far,” declares a former adjudicator. At a time when the EB-5 program is undergoing reform, might USCIS also reconsider the notion of material change that investors and their attorneys believe makes participation in the EB-5 program more difficult?
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Crowdfunding Legislation Passes in House, Good for EB-5 Funding
The “Entrepreneur’s Access to Capital Act,” which lets small businesses sell non-public securities through social media solicitations, has just passed with overwhelming bipartisan support from members of Congress and support from the White House. But how might it affect EB-5 funding?
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