Comment: Four Flavors of EB-5 Jobs Programs

From the policy perspective there are four flavors of EB-5 jobs programs.


  • "But for" Projects: Projects that would not be possible but for EB-5

  • "Extra Profits" Projects that don't need EB-5 capital; and EB-5 produces extra profits

  • "Hands on" Eb-5 Investments

  • "Pooled Direct" where multiple direct investments are pooled under an common management


  1. "But for" Projects: Projects that would not be possible but for EB-5: Bill Stenger of Jay Peak notes that investors from Montreal and Boston will not invest in projects like his because the project is too far away from these densely populated areas. These projects need EB-5 capital to be built at all and typically 90% of their capital is from EB-5. These projects are typically in economically disadvantaged areas and create jobs in these areas that have relatively fewer employment opportunities. This is consistent with the original intention of EB-5 as a regional development program for economically disadvantaged areas and these projects create jobs that would otherwise not be created. They carry the usual start-up risks. This option creates extra jobs but carries high risk for the investor.



  2. "Extra Profits" Projects that don't need EB-5 capital; and it produces extra profits for the promoters: Projects such as those located in major cities, are not exactly in an economically disadvantaged area. They also have ample sources of capital from multiple sources. For such projects, EB-5 capital obtained at interest rates far below the market level through EB-5 produces extra profits for the project. These projects create no extra jobs other than those that would be created anyway through regular financing. As EB-5 capital is only a small part of the capital stack the risk is reduced for the EB-5 investors. This option creates no extra jobs but carries low risk for the investor.



  3. "Hands on" In this EB-5 route the immigrant takes the full risk of running the business and creating the jobs. Only the actual number of W-2s is counted towards the job creation number, so Hands on EB-5 investments create jobs in a manner consistent with the program's original intent. This option creates extra jobs but carries high risk for the investor.



  4. "Pooled Direct" Provides reduced risk through pooling of direct investments: This model reduces the risk and work for the investor over a hands-on investment by pooling of investments and by use of centralized professional management to replace individual entrepreneurial involvement by the investor. Only directly created jobs can be used towards the EB-5 job creation requirement. This option creates extra jobs and carries lower risk for the investor.



As best as we can estimate, currently the bulk of the EB-5 investment (85%) is taking place in the "Extra Profits" category of projects where only a small sliver of EB-5 capital is used to lower the overall cost of capital. Remaining 15% is distributed evenly between the category of projects that would not be built but for EB-5 capital, Hands on investments and pooled direct investments. The EB-5 program was originally conceived to be focused on the "But For" and "Hands on" projects and has expanded radically to include these four different flavors.









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Focus: The Hi-Tech PERM Workshop National Harbor, MD (Washington D.C. Area) - Final Deadline


ILW.COM is proud to announce that the Hi-Tech PERM Workshop will be taking place on June 17, 2015 in National Harbor, MD (Washington D.C. Area). Speakers include: Joel Stewart (Discussion Leader), Rami Fakhoury, Matt Morse, Michael Piston, Larry Rudnick, Edwin R. Rubin, Pradeek Susheelan, Rohit Turkhud, Nathan Waxman and others to be announced. The curriculum is as follows:





Session 1:


What's the Law?







  • Chevron Deference & Sub-Regulatory Rulemaking





  • Statutory Authority





  • Regulations: 20 CFR and Others





  • Instructions on the Forms





  • Instructions For Electronic Filing





  • BALCA





  • FAQ's





  • Stakeholder Guidance,





  • Memoranda





  • Other Guidance





  • Conflict with State Laws







Analysis of IT Occupations:







  • O*Net Occupations Used in High Tech Applications





  • How to Use the Occupational Outlook Handbook





  • High Tech Hierarchy: Technicians, Engineers, Managers





  • Travel: Unanticipated Locations, Home Office and Telecommuting and Relocation





Session 2:




Minimum Requirements for Occupations:







  • SVP - Are Requirements normal in the US?





  • Alien Experience and Education Gained While On the Job





  • Actual Minimum Requirements





  • Combination of Job Duties





  • "Language" Requirements





  • Training Requirement







Alien Qualifications:







  • Comparison of American, European, and Asian Diplomas





  • Equivalency Standards: H-1b, PERM,





  • Educational Evaluators





  • What is an Equivalency?





  • Combining Education and Experience





  • What is Training?





  • Paid vs. non-paid experience.







Prevailing Wage Calculations







  • O*Net Occupations without PW Data





  • November 2009 Prevailing Wage Guidance





  • The Point System





  • The Four Levels





  • Requesting Review of Determinations





Session 3:


Recruitment:





  • Basic Recruitment: Choice of Newspapers or Professional Journal





  • 10 Professional Recruitment Options





  • Notice Requirements: 10 Day Notice of Filing and Other Media





  • 30 Day Job Order at SWA







Identifying Referrals and Applicants:







  • Dealing with State Work Force Agencies





  • Electronic On-Line Job Applications vs., Traditional Resumes





  • Determining Qualified Workers





  • Responding to Applicants





  • Recruitment Report







Special Problems for IT Workers:







  • Progression from F-1 to Permanent Residency





  • Self-Employment, and Portability





  • Quirks to Transition from H1B1's, E-3's and NAFTA temporary work status





Session 4:


Audit Responses and Appeals:





  • Special Audit Problems





  • Supervised Recruitment





  • Denials without Audit





  • Requests for Reconsideration







    • Regular Queue


    • Government Error Queue






  • Requests for Appeals to BALCA





  • Options for Federal Court Litigation







Nathan's High End Potpourri:







  • National Interest Waivers





  • 2nd Preference Exceptional Aliens Instead of Advanced Degrees





  • Schedule A Exemptions







For additional information, including speaker biographies, and to register, please see:




Online: http://www.ilw.com/workshops/june2015perm.shtm




Fax: http://www.ilw.com/workshops/june2015perm.pdf





The Final Deadline is June 10th. Don't delay, act today!








Headline:
Illegal Immigration To The U.S. Caused By Globalization? Click here

Headline:
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Headline:
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Headline:
Democrats sign letter urging US to close 'harmful' immigration detention centers Click here

Headline:
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Help Wanted: Immigration Paralegal


Tampa, FL. Buchanan Ingersoll & Rooney PC is seeking an experienced Immigration Paralegal in our Tampa, FL office. Position Overview: Provide paralegal assistance to high volume immigration law practice supporting two attorneys. Practice involves business and family cases regarding nonimmigrant, immigrant and citizenship matters. Duties/Responsibilities: Handle telephone communications with clients, attorneys and staff. Extensive client interaction. Document and client billing organization. Liaise with various government agencies. Assist in document preparation and revision. Maintain working knowledge of current immigration policies, practices, procedures, formats, and terminology. Other duties as assigned. Knowledge/Experience: Four year degree preferred. 5+ years' immigration experience. Excellent communication skills required for effective client contact in high volume, high profile immigration practice. Superior organizational skills and ability to keep high volume practice organized with strong case management skills. Ability to work independently as well as part of a team. Advanced skills in computer technology using MS Word, Excel, Outlook. Ability to meet deadlines in an environment with frequent interruptions. Flexibility to work occasional overtime. Please apply on line at www.bipc.com >careers>professional staff, or click here.







DNA Testing

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ComingsNGoings: Immigration Event


June 2, 2015, 8:30am - 10:15am EDT, Washington, DC. National Journal will hold a forum "Pathways to Reform: A Discussion on High-Skilled Immigration Policy." Speaking at this event will be: The Hon. Ron Johnson, Stuart Anderson, Russell Harrison and Harry Holzer, Ph.D. Location: Ronald Reagan Building and International Trade Center, Horizon Ballroom , 1300 Pennsylvania Avenue, NW | Washington, DC, DC 20004. For more information and registration see here.







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