Comment: EB5 Market Update - October

EB5 Market Today – Supply Running Out
  • Projects: We are learning that many projects that made a commitment to the Indian market early have completed or are close to completing their raises. (This is not the case with China-centric projects which have struggled to adjust to the more demanding investors.) The demand in India is very strong, and as project after project that the Indian investors were considering complete their raises, there is likely to be a panic as the investors rush to get into some or any project before the deadline, creating an opportunity for projects that are not fully subscribed yet.
  • Investors: Indian investors do not grasp that the bottleneck for EB5 applications is their Source of Funds. Most of those who are planning to do EB5 before the deadline are currently wasting their time trying to select their project—which is likely to turn out to be an utter waste of the precious little time they have left. Preparation of Source of Funds is time consuming and can require digging up or acquiring 10, 20 or 30-year old documents which can take weeks in India. By the time investors are ready with their source of funds in a few weeks, their first choice of project and probably their first three choices are likely to be fully subscribed, and they will have to start the process of project selection all over again.
  • Immigration Attorneys: It is immigration attorneys who will face the maximum pressure starting November 1st. The clients, having paid significant fees, will feel entitled to have their application submitted in 48 hours after they have their money lined up, little realizing that a lot of the work of source of funds needs to be done by investors themselves—not just the immigration attorney. As a result of the hurried or skeletal source of funds done to meet the deadline, we expect the denial rates to be sky high in the 30% to 35% range. We recommend that immigration attorneys receiving this email to forward it to their clients—to get them to move now and fast on their source of funds—which is both in their interest and their immigration attorney’s interest.

EB5 Market Beyond November 21 – a Whole New World
  • It has become clear that there will be a post-November 21st EB5 market, we have received reports from multiple countries that $900k is not serving as an impediment to the well-heeled. While the shape of the post-new-rule market is not clear, a new market will exist.
  • Many urban EB5 projects contend that they will remain in TEAs under the new rule after November 21st, we are not so sure. The reason has to do with uncertainty – absent more guidance from USCIS, there will remain an inherent TEA uncertainty with urban projects seeking $900k investments as compared to projects entirely outside MSAs which will offer TEA certainty, casting doubt on the efficacy of urban projects’ raises until USCIS clarifies the situation (since all exemplars and all current TEA designations will have expired on November 21st). Urban EB5 projects would be well advised to complete their raises in toto prior to November 21st, and to plan no further raises until late 2020 or beyond. For rural EB5 projects, their day in the sun is about to arrive.
  • The top 10 EB5 countries will look quite different post November 21 st, since long lines will likely have developed for 6 of the current top 10 countries: China, Vietnam, India, Brazil, Korea and Taiwan – these may all face retrogression, particularly severe in the case of China (20+ years). The law of immigration gravity appears about to hit the EB5 industry, hard.

Legislative Update – Ain’t Nobody Got Time for That
  • The annual saga of Congress’s most important task, that of Appropriations, continues. A continuing resolution was passed by both the chambers of legislature and signed by President Trump extending current programs and funding levels through November 21st. and the RC program has been extended co-terminously with the CR through November 21st.
  • Unfortunately, even when Congress eventually finds consensus on all non-DHS components of the Appropriations effort, DHS Appropriations will likely be the final bill negotiated. Hence, while the rest of the government will likely be funded by Thanksgiving/Christmas, it is entirely possible that DHS will have to wait for a final budget until early 2020. RC program extension is included in DHS appropriations, and we will once again likely be witness to short 2-month extensions of the RC program until the Wall, Dreamers, and other contentious issues are dealt with.
  • Given that impeachment has sucked up all the political oxygen in Washington, and the already contentious climate has been ratcheted up a few more notches, it is now even harder to get legislation through Congress which is acceptable to the White House. Given this climate, the chances of legislative action modifying the EB5 RC program—which is very low in priority for both the parties, both chambers, and the White House-- are small.
  • The EB5 industry harbors a nostalgia for the good old days of China, and thus is always on the lookout for relief from retrogression, the following is a quick note on country quotas. HR1044 cleared the House by an impressive bipartisan majority. However, during this hyper-partisan Congress with each Chamber controlled by a different Party, the Senate has proven to be a graveyard for all House bills except for renaming post offices and for Appropriations to keep government running. S386, the companion bill to HR1044, faces holds and stalling maneuvers from multiple Senators including the Democratic Whip Senator Durbin—the second highest ranking Senate Democrat, and confronts the same fate as any other immigration legislation, which is to say no Senate vote is likely. Quota relief is not a realistic prospect in this Congress.

Kudos from Returning Client – “Improved Beyond Recognition”
  • Feedback from a returning client on our recent expos: “ILW events in India have improved beyond recognition. Yesterday I was completely blown-away by the quality of the leads ILW generated. The only word that comes to mind is “Congratulations!” We have been meeting clients we met at your event again today.”
Contact Us for available events at Webmaster@ilw.com or call us at 212-545-0818 or click here.

Article: Immigrant Children With Cancer, HIV, Cerebral Palsy Threatened With Deportation By Walter Ewing

Blogging: Public Charge rule is Trump's latest move toward immigration dictatorship as blueprint for abolishing freedom, democracy and rule of law By Roger Algase

News: Suspension of Entry of Immigrants Who Will Financially Burden the United States Healthcare System, in Order To Protect the Availability of Healthcare Benefits for Americans

Focus: Hot Off The Presses: The EB-5 Book 2016-17 Edition; Editors: Matt Gordon and Sarah A. Schroeder Shipping Now!

  • Specific focus on Enforcement and Compliance.
  • 8 Brand New articles and 3 articles updated from previous edition to cover cutting-edge current developments.
  • Articles by Shae Armstrong, Jeanne Calderon, Michael T. Clark, Laura Danielson, Michael Dunn, L. Batya Schwartz Ehrens, Gary Friedland, Robert P. Gaffney, Adam Gale, Steve Ganis, Sherman Golden, Douglas Hauer, Jennifer Hermansky (Jen), Parisa K. Karaahmet, Mark Katzoff, Lily Li, Brandon Meyer, John Neill, Angelo A. Paparelli, Chun Yun ("Elizabeth") Peng, John Roth, Paul Ruby, Reid Thomas, Robert S. Winner, and Ben Zou.

Buy Now!

Online: http://www.ilw.com/books/TheEB5Book.shtm
or Fax: http://www.ilw.com/books/theeb5book.pdf

Headline: Trump's latest misdiagnosis is bitter pill for immigrants Click here
Headline: Is Encouraging Illegal Immigration Protected Speech? The Supreme Court Will Decide Click here
Headline: Lawsuits around US seek to block Trump’s public charge rule Click here
Headline: Trump just quietly cut legal immigration by up to 65% Click here
Headline: Immigrants Went to This California Woman for Green Cards and Work Visas. She Allegedly Scammed Them out of More Than $100K. Click here

Kaufman; Kahn, LLP

Real Estate Practice: Landlord/Tenant and Real Estate Litigation; Cooperative and Condominium Disputes; Collection Actions; Enforcement of Judgments; Arbitration; Residential Real Estate Transactions; Commercial Real Estate Transactions; Business and Commercial Litigation in State and Federal Court; Business Transactions (Contracts, Promissory Notes, Mortgages, Security Agreements, Operating Agreements, Shareholder Agreements, Partnerships, License Agreements); and Commercial Leasing and Lending. Intellectual Property Practice: Copyright Law and Trademark Law: filing and prosecuting applications in the Copyright Register, the USPTO and TTAB; litigating to enforce registrations against infringers (and defending against alleged infringers) in federal courts; defending against Americans with Disability Act (ADA) claims; Intra-Corporate Business Litigation (“Business Divorces”); Drafting and Negotiating Transactions: Licensing Agreements and other Intellectual Property Contracts. Contact:Robert L. Kahn, Esq.; Kaufman; Kahn, LLP - 10 Grand Central, 155 East 44th Street, 19th, Floor, NY, NY 10017, (212) 293-5556, kahn@kaufmankahn.com

Help Wanted: Immigration Attorney

We are seeking one full-time attorney with 1+ years of experience in the immigration field, who is licensed to practice law in any U.S. jurisdiction, however a license to practice in New York, New Jersey and/or Pennsylvania is preferred. Knowledge of Russian or Spanish is also preferred, but not required. Salary is commensurate with experience and will be discussed in detail, as well as benefits offered, at the interview and before the job offer. About our firm: We are a boutique, diversified immigration law firm also practicing in federal court civil litigation. We consist of 2 attorneys and 3 paralegals and have an outstanding, friendly, team-oriented environment. In our office, we emphasize teamwork and the quality of our work, as well as ethical professionalism, are our top priorities. Our office is located in the Bensonhurst area of Brooklyn, right off of the D Train, for easy commuting. Our office is also conveniently located near residential parking, if candidates have a car and wish to drive to work and not pay for parking. Successful candidates will demonstrate an ability to handle a high volume and diverse case load, have excellent English writing and communication skills, as well as close attention to detail and organizational skills. Candidates should send resume and writing sample, no longer than 10 pages in length and preferably immigration-related, to allison@bibicheff.com. No phone calls please.

Help Wanted: Immigration Paralegal

Baker Donelson has an immediate opening for an immigration paralegal. This position will be located in Chattanooga, Houston or Birmingham. Applicants with pertinent experience will be considered from any city to work remotely. A Bachelor's Degree and/or a paralegal certificate from an ABA approved paralegal program and at least 3-5 years of employment-based immigration experience are required including preparation of labor certification applications, and a variety of business immigration filings with both consular posts and USCIS (e.g., E, L, TN, Adjustment of Status, Immigrant Visa). Major responsibilities include writing and research for EB-1 petitions, specialty occupation H-1Bs, and drafting waiver applications and responses to requests for evidence for attorney review. Additional responsibilities include assisting attorney with determining case strategy; managing large volume of clients and tracking the status of filings and documentation needed; gathering relevant documentation from clients; reviewing extensive case documentation received; assisting attorney with legal research; assembling and organizing filings with the government; drafting legal correspondence to the government and clients for attorney review; preparing appropriate forms for government agencies, maintaining fully paperless file copies. Candidates should possess strong organizational and communication skills, including willingness and ability to work directly with foreign nationals to gather information and documentation. Please click hereto apply.

Letters of the Week

ComingsNGoings: Immigration Event
Healthcare for Illegal Immigrants: What would it cost? Affordable Care Act subsidies for illegal immigrants could cost $10-23 billion a year. 9:30 a.m., Thursday, October 10, 2019, National Press Club, Murrow Room, 529 14th St. NW, 13th Floor, Washington, D.C. 20045. More Info: https://www.press.org/events/healthcare-illegal-immigrants-what-would-it-cost


An Important disclaimer! The information provided on this page is not legal advice. Transmission of this information is not intended to create, and receipt by you does not constitute, an attorney-client relationship. Readers must not act upon any information without first seeking advice from a qualified attorney. Copyright 1995-2017 American Immigration LLC, ILW.COM. Send correspondence and articles to editor@ilw.com. Letters and articles may be edited and may be published and otherwise used in any medium. The views expressed in letters and articles do not necessarily represent the views of ILW.COM.
Publisher: Sam Udani ISSN: 1930-062X
Advisory Board: Jason Dzubow, Rami Fakhoury, Matthew Kolken, Chris Musillo, Lory Rosenberg, Greg Siskind, Joel Stewart, Margaret Wong