A Way to Reduce the I-924 backlog and Streamline Processing

(Author: Joseph Whalen) What if USCIS started to deny more I-924s outright instead of always sending an RFE?  Such an action is well within long existing law and the pertinent regulations were promulgated through APA[1]notice and comment rulemaking years ago so, any lawsuit would quickly fail.  USCIS could institute such a measure for a short time and again as needed.

The anticipated effects would include mostly positivesas follows:
 

1. Quick Backlog Reduction of older forms I-924 across-the-board
2. Bring closure to long pending cases, one way or the other;
3. Quickly denying the clearly meritless, skeletal, or naive I-924s;
4. Allow time to be spent on approving all cases that could be approved with only minor corrections, they can get RFEs orfile Motions later;
5. Protecting EB-5 investors from fraud, especially if ALL Decisions are posted to the website immediately—like BALCA and BIA do;
6. Allow developers to “move on” and either break ground or seek funding “other
than” EB-5
7. Put applicants “on notice” of the deficiencies in their initial filings so that they could prepare better filings IF they chose to do so;
8. Clear the path for new filings for which greatly reduced processing time would ensue;
9. Suspend across-the-board implementation of this streamlining measure for new applicants who have been “put on notice” and only need a small amount of revision to become approvable; and
10. Retain limited implementation of this measure to ensure that meritless cases are dispensed with quickly so as to avoid a new backlog;

The negative consequences would be confined to those who:

1. Continue to submit meritless applications, or
2. Waste their time, money, and effort filing frivolous lawsuits against USCIS; and
3. USCIS & DOJ wasted expense of answering meritless lawsuits.

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[1] Administrative Procedures Act codified as 5 USC, Part I, Chapter 5.

Brian Su hosts inbound Chinese EB-5 agents in DC

Mr. Brian Su hosts inbound Chinese EB-5 emigration agents from China for the presidential celebrations sponsored by Artisan Business Group, Inc. A number of meetings with US senators and congressman were also scheduled for the agents. Artisan Business Group is a leader in Chinese emigration market and work closely with over 100 licensed emigration brokers such as Wailian Group, WellTrend Group, Worldway, MasLink, Visa Group, etc. to promote EB-5 projects throughout China.  For more information about EB-5 program marketing in China, contact us today at 217-899-6661.

Photo with Wailian Group Chairwoman Ms. He and Manager Ms. Yu

Book your booth at The Invest in America 2013 (Shanghai) Summit and Exhibition

Hurry up, over 40 EB-5 regional centers, law firms, accounting firms and other companies have booked exhibition booths!   The 2013 Invest in America Summit is accepting Exhibitor and Sponsor Applications, see confirmed speakers and download Exhibitor Manual at http://www.InvestAmerica2013.org. Please call conference coordinator Ms. Sherry Xu at (626) 200-9273 or email info@ArtisanBusinessGroup.com for Exhibition and Sponsorship Packages!  

Exhibition Hall Layout

The Invest in America 2013 (Shanghai) Summit & Exhibition March 15-18, 2013 will feature 60 exhibition booths and more than 20 presentation seminars and breakout sessions at the Shanghai Exhibition Center. The event is expecting very large crowds due to the fact it shares the same space with the largest real estate trade show in Shanghai. Please watch the 2012 Summit (Shanghai) video clip.

Bookmark this daily blog or http://www.InvestAmerica.org for future event update!

Platinum Sponsor

Diamond Sponsor

Platinum Sponsor 

Diamond Sponsor

Conference Organizer

Gold Sponsor

Conference Organizers

Artisan Business Group sponsors Illinois Senate Presidential Celebration in DC

Artisan Business Group is proudly sponsoring Illinois Senate Presidential Celebration at Marriott Wardman Park Hotel in Washington DC tonight. Brian Su leads a small group of Chinese emigration agents to the event. Over 1200 people from Illinois attended the celebration. Mr. Brian Su was also invited to attended a celebration party hosted by the Democratic Governors Association on Saturday evening.  For more information about EB-5 program, contact us today at 217-899-6661.

Chicago Mayor Rahm Emanuel

Live Music

Live Performance

Illinois Senators

Meet with Chinese EB-5 brokers at the Invest in America 2013 (Shanghai) Summit and Exhibition

"The Invest in America 2013 (Shanghai) Summit" - the largest US investment and EB-5 immigration trade show outside the U.S. is to host Chinese Emigration Industry Roundtable during the 4-day conference and exhibition in Shanghai China, March 15-18, 2013. The roundtable meeting allows direct engagement and dialogue between Chinese EB-5 emigration brokers and exhibitors to discuss EB-5 program.  If you are interested in exhibiting your professional services or investment projects, hurry up to get your booth prior to January 30, 2013.  This is a rare chance to promote your business and up-coming EB-5 projects directly to Chinese emigration agents and investors. Over 40 booths have been taken, only a few are still open!  For more information on exhibitor & Gold sponsor registration, please contact Mr. Tyler McKay at 217-899-6661 or log on http://www.InvestAmerica2013.org to download Exhibitor Manual. 

The Invest in America 2012 Summit - Opening

The Invest in America 2012 Summit - Seminars

The Invest in America 2012 Summit - Exhibition

Direct EB-5 Makes a Comeback

(Author: H. Ronald Klasko)  

Ron Klasko

Slowly but surely, there has been an increased interest in direct EB-5. By direct EB-5, I mean EB-5 investments outside of the context of a regional center. Traditionally, the choice has been an investor investing in his own business, which requires producing 10 direct and full-time jobs for U.S. workers, or investing in a regional center, which allows for indirect and induced employment creation. Regional center investments have been of more interest to developers and businesses because far more investment capital can be raised based upon the increased employment numbers that come from indirect and induced jobs. Investors, too, and their agents, have preferred regional center investments because of the aura of government approval of a regional center and, in some cases, USCIS approval of an exemplar I 526 petition for the project.

 

So what changed? For the project developer and the business, it has become far more difficult to create a new regional center and even then only at great expense and great delay. If a regional center already exists, the timing to amend the regional center to add industry codes or geography may be unrealistic. The alternative always exists of having a business or project sponsored by an existing regional center, but that action comes at a cost that may be prohibitive and potentially a loss of control of at least some aspect of the project.

From the investor’s point of view, fewer and fewer exemplar I-526 “project preapprovals” are coming to market because the timeframe to obtain the project preapproval has become unrealistic. In addition, USCIS has backed off of the original concept of project preapproval and has stated clearly that it does not consider itself bound by such a “preapproval”. The net result is that regional center projects have lost some of their luster.

As a result, we now regularly factor into our advice to project developers and businesses seeking capital the option of the pooled investor direct EB-5. And, in our discussions with agents, we now see more willingness to consider the direct EB-5 option.

Obviously, the option only exists to the extent that direct W-2 jobs will be created through the investment. If so, the direct EB-5 option allows the business or developer to market the project to investors virtually immediately without having to obtain any USCIS preapproval. Another advantage is the elimination of the need for an economic report to project indirect and induced jobs. However, the need for a comprehensive business plan to present direct job creation projection in a credible manner is still critical.

There are some advantages and disadvantages from the investor’s perspective. Unlike with the regional center loan model, the investor must be an equity investor in the job-creating enterprise. This could be common shares or preferred equity. In either event, the investor’s chances for a more substantial return could be enhanced but at the expense of a less certain exit strategy.
Another issue is the need for an investor to be something other than a purely passive investor. This legal obligation is met in the regional center context by granting the investor all of the rights and responsibilities of a limited partner under the Uniform Limited Partnership Act. In the context of a direct EB-5 investment, if the investor is not going to be employed by the investment enterprise, at the very least the investor should be placed in an advisory capacity similar to the capacity he would have as a limited partner. The USCIS training materials for EB-5 make clear that USCIS is very flexible in adjudications relating to this requirement.

One of the attractions of the direct EB-5 is the elimination of the plethora of issues that have arisen recently in the adjudication of regional center applications and regional center project adjudications. Tenant occupancy jobs, guest expenditure jobs, NAICS codes, bridge financing…these are just some of the issues involved in regional center project adjudications that do not have to be surmounted with a direct EB-5. However, while there may be fewer issues, the I-829 condition removal process may be more problematic. Whereas there may be no need to count actual workers in regional center I-829 adjudications, there is a need to do so with direct EB-5 adjudications. This means that the business or developer must document, through W-2 forms, I-9 forms and quarterly tax returns, the actual number of employees. In addition, unlike with indirect and induced jobs, there is a need to prove that each employee is a U.S. citizen or a permanent resident or other qualifying employee. This requires obtaining documentation not normally obtained in the I-9 process, which could put the commercial enterprise at risk of a national origin or citizenship discrimination charge if not handled properly.
 
In a number of our client representations, we have recently advised of the benefits of a hybrid solution. If there will be direct job creation, but insufficient direct job creation for the number of investors required, or if future projects are envisioned that would benefit from indirect and induced employment projections, the optimal solution may be to proceed concurrently with direct EB-5 for the first group of investors while concurrently filing a regional center application for future investors in the same project and/or for future projects. For example, if there will be 200 direct employees, the first 20 investors could invest $20 million (or $10 million if it is a TEA) before a regional center is approved, while the remainder of the EB-5 investment money will come along at a later date once the concurrently-filed regional center application is approved.
Of course, all of this may change if USCIS actually successfully implements its proposed new EB-5 office in Washington, DC and, in fact, adjudicates regional center applications in the targeted 90 to 120 day time period.

ABG sponsors Illinois Senate Presidential Inaugural Celebration in DC

Artisan Business Group is a main sponsor to the Illinois Senate Presidential Inaugural Celebration in Washington DC January 20, 2013 (Sunday).  Mr. Brian Su will lead a group of Chinese emigration agency executives and business leaders to attend the celebration event and the Presidential Inauguration Ceremony January 21, and will meet with U.S. Senators and Congressman on January 22.