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Common EB-5 visa Investor Questions

Posted by Kurt Reuss on January 09, 2017

Q:  I haven't paid taxes, individual or business, because my country of residence doesn't require it or it isn't customary. Is this a problem?

A: Catharine: We normally tell clients if they can provide income tax returns, it’s great to do so. If they can't, it's not going to make or break their petition. 

We let them know that if USCIS EB5 sends a request for evidence (RFE) for copies of their income tax returns, they will need to either produce them or get a letter from an attorney in their country of residence stating the legal reason behind why they can't provide those tax returns.

I always request tax returns but I’ll still file a petition if I don't have them. 

Take an overview of EB-5 visa requirements

When Do You Need A Broker Dealer in EB-5?

Posted by Kurt Reuss on July 14, 2016

Role of EB-5 Broker Dealer

Kurt: Lori, Could you give us your thoughts about the need for a broker-dealer in EB-5 transactions?

Lori: Since I'm the only person on the panel who doesn't work for a broker-dealer, hopefully I'm objective. Let me begin by saying that every deal is different and thus all the facts are different. Obviously, we take that into account when we advise participants in an EB5 offering what they need to do. Generally, however, we believe that participants, whether issuers or regional centers, could have a better outcome if they associate with a broker-dealer, especially in regard to the following topics:

Crowdfunding Defined Under Titles II, III and IV

Posted by Kurt Reuss on June 15, 2016

Kurt: When we look at crowdfunding in eb5 process; we're talking about three rules: Title II, Title III and Title IV.

Title IV, being Reg A+ investment offerings, requires you to register your securities with the SEC, so that's going to bring more responsibility on you.

Title III involves raising no more than $1 million.

So my sense is that Title II, Reg D - Rule 506(c) is probably most applicable to EB-5.

What is an NCE?

Posted by Kurt Reuss on April 01, 2016

NCE is an acronym for  'New Commercial Enterprise' and the term is used in EB-5 to identify the entity, partnership or LLC that EB-5 petitioners will invest in, and the New Commercial Enterprise is a requirement of the US EB 5 program. This entity is often a different entity from the 'Job Creating Entity' (JCE) which the NCE makes an investment into on behalf of the investors, sometimes in the form of a loan from the NCE to the JCE and sometimes in the form of equity, whereby the NCE becomes an equity partner in the JCE.

There are no restrictions on the type of business investors or an NCE can invest in, as long as it is a new business enterprise or the investment is made into a failing business to save jobs, but in both cases the investment must create or save at least ten (10) jobs per investor.

Faced with an SEC Investigation? Form 1662 is a Great Checklist.

Posted by Kurt Reuss on January 23, 2015

SEC Investigation

An SEC investigation of an EB5 Regional Center or Issuer often starts with either formal service of a Subpoena for documents or a Preservation Notice from the SEC stating that you may have documents in which they might be interested. 

The Preservation Letter puts you on notice to maintain availability of the items listed. This will buy the SEC time to begin a more thorough investigation, which might then branch out to other associated parties.

How SEC Investigations Typically Start and Proceed

Posted by Kurt Reuss on January 22, 2015

Recently the SEC became focused on Regional Centers and Issuer activities related to the offer and sale of securities to foreign investors seeking EB-5 visas which have resulted in SEC investigations as well as a recent Investment Alert, jointly issued by the SEC and USCIS. The SEC's investigation of EB5 Regional Centers, Issuers and other EB-5 players is no different than any of other SEC investigation.