EB5 Book - Final - English

“The Investor’s Path to a Green Card” presents its importantsubject with precision and clarity. This is a wonderful guide foranyone wishing to become a permanent resident of the UnitedStates through investment. If investment immigration is in yourfuture, you must read this book.”

Alexis Neely – Founder Family Wealth Planning Institute,nationally recognized speaker and author of the bestsellingbook - Wear Clean Underwear: A Fast, Fun, Friendly - andEssential - Guide to Legal Planning for Busy Parents.

“Vaughan de Kirby has written a truly great book that will help somany people become part of the success story that is the UnitedStates. This book is required reading for anyone who wants to makea profitable investment in the United States and at the same timeachieve permanent residency for themselves and their family.Vaughan has presented a intricate area of the law with a kind ofclarity that will empower his readers worldwide.”

Sandra Rohrstaff, Esq.President–Elect Virginia Trial Lawyers Associationwww.WRSAttorneys.com

“The Investor’s Path to a Green Card” is the first true guide forpotential investors seeking a Green Card. This book is informative,accessible and comprehensive in its treatment of what can be aconfusing subject. If investment immigration is your desire, this isyour book.”

Bob Battle, Esq.Virginia Attorney

“Vaughan de Kirby uncovers one of the best kept secrets inimmigration law and explains it simply and passionately. Don’tconfuse the EB-5 Pilot Program with the original, congressionallymandated legislation. To do so is to lose the opportunity of alifetime. If you are serious about wanting you and your family toenjoy the benefits of living and working in America, and you have$500,000 to invest, Vaughan’s book is your ticket to the USA.”

Charlie Hofheimer, Esq.Author and Family LawAttorney

“Vaughn has written an excellent book to educate the foreignentrepreneur on how they can make their American business dreama reality. Vaughan has written a go-to-guide on an under-appreciated area of immigration law. If you have any interest inthis fantastic program, “The Investor’s Path to a Green Card” justmight change your life.

Nancy Cavey, Esq.Nationally Recognized Social Security Disabilityand ERISA Lawyer

“Finally, a book on immigration law—or any area of law for thatmatter—written for non-lawyers. There are many capableattorneys out there, but few understand the EB-5 program as wellas Vaughan—and fewer still have the ability to communicatecomplex legal issues in simple language. I learned a lot fromreading this book, and I’m sure you will too.”

Chuck Boyk – Ohio personal injury attorney, co-author ofThe Ohio Accident Book and The Ohio Work Injury Book.

“This is a book that takes a highly specialized area of immigrationlaw and explains it in a simple format rather than using jargon.Most legal books are written for lawyers and filled with obscurelegal language. We were thoroughly impressed by the depth of theinformation and the easy-to-understand format of this otherwisechallenging legal area. With the advantages and disadvantages ofeach visa program clearly outlined and the fantastic ‘Question &Answer’ sections, this book is a necessity for anyone who is evenconsidering seeking a Green Card through investment.”

Alexis Saphire Breyer, Esq. andMark Breyer, Esq.Breyer Law Offices, P.C.Phoenix, Arizona

“Vaughan is the most knowledgeable attorney I know aboutthe EB-5 Investor Visa program. He literally wrote the book on thesubject. I have been critical of many of the “lawyer” books I havecome across: not much substance, not well written, way too muchsales hype. Vaughan’s book is just the opposite. It is full ofsubstance and a pleasure to read.”

John Bisnar, Esq.www.bestattorney.com

As a lawyer, I am keenly aware that investor immigration is aunique and often complex area of immigration law. Vaughan hasdone a tremendous job of presenting this information with clarityand critical insight. There is no other book that offers so much vitalinformation to the immigrant investor. “The Investor’s Path to aGreen Card” is an indispensable guide for any foreign investorlooking for United States permanent residency.

Michael Sherman, Attorney at Lawwww.AlabamaFamilyLawBlog.com

THE INVESTOR’SPATH TO A

GREEN CARDHow investing in America can put you and your family on the

path to greater wealth and U.S. Permanent Residency.

Vaughan de Kirbywith Kenton de Kirby

Copyright © 2008 by Vaughan de Kirby

All rights reserved. No part of this book may be used or reproduced in any mannerwhatsoever without written permission of the author.

Printed in the United States of America.

ISBN: 978-1-59571-346-9

Word Association Publishers205 Fifth AvenueTarentum, Pennsylvania 15084www.wordassociation.com1-800-827-7903

TABLE OF CONTENTSIntroduction 9

Part I: The EB-5 Program

Is the EB-5 Visa Right for Me? 17A Brief History of the EB-5 Visa 31Q&A: The Original EB-5 Program 37The EB-5 Pilot Program 41Q&A: The Pilot Program 47A Side by Side Comparison of the Original andPilot Programs 52

Part II: The New Orleans Regional Center

Hurricane Katrina and the Rebirth of New Orleans 57NobleOutReach and New Orleans—AUnique Company and a Unique Regional Center 60A Profile of NobleOutReach’s Management Team 68Interviewwith ExecutiveVice President TimothyO.Milbrath 71Interview Highlights 89Other Regional Centers 94

Part III: The EB-5 Visa Application Process

The EB-5 Application Process in 12 Steps 103The Application Process, Illustrated 109The Flow of Funds, Illustrated 110Guide to Documentation—Source of Funds 111Guide to Documentation—Personal Information 113

Afterword 115

INTRODUCTION

My name is Vaughan de Kirby, and I have been practicing law forover 26 years. As an immigration attorney, I know of no better,more secure path to permanent U.S. residency than the EB-5investor visa program.

The United States Congress created the EB-5 investor visa nearly20 years ago. In its essence, the EB-5 program is simple: it givesimmigration benefits to foreign investors who make a significantinvestment in the U.S. economy.

I wrote this book because I feel passionately about the EB-5program. Unlike so much of U.S. immigration policy andimmigration law, which is fraught with absurd catch-22’s andbureaucratic black holes, the EB-5 visa program actually makessense in a profound way. And it works!

The EB-5 program creates wealth and opportunity for both foreigninvestors andAmerican citizens. It provides foreign investors withan opportunity for a significant return on their investments; it givesthe investors and their families full immigration benefits, includingaccess the U.S. educational system; and it helps revitalize regionaleconomies in the United States. The benefits of EB-5 investmentsto the U.S. economy are not abstract; they create real jobs for realpeople, in areas that are most in need of economic support. And itchanges the lives of the investors and their families, who can enjoythe many benefits of living and working in the United States.

I also believe that the EB-5 program is an opportunity to deepen thepartnership between China and the United States. Our world ischanging rapidly, and the pace of change seems only to bequickening. An increasingly global economy means profound

VAUGHAN DE KIRBY WITH KENTON DE KIRBY

9

interconnectedness and interdependence between all countries. Webenefit from each others successes and we suffer each other’shardships. The more we take this to heart—the more we changeour laws and economic policies to reflect this interconnectedness—the better our chances of creating a world of prosperity andopportunity. Capitalism is about competition, certainly. But thesuccess of worldwide global economy is equally aboutcooperation.And nowhere is this more crucial than between two ofthe world’s most powerful nations: China and the United States.

This book is meant to provide the potential investor with anessential guide to the EB-5 program. Of course, reading this bookcannot take the place of consulting with a qualified attorney.Applying for an EB-5 visa is a complex, multi-faceted process.Working with an experienced Investment ImmigrationAttorney isimperative. I cannot emphasize this enough: finding an attorneywith the necessary expertise can mean the difference betweenobtaining visas for you and your family and having yourapplication denied.

For the purposes of this book, I decided to focus on New Orleans,one of the program’s “regional centers”—areas in need ofinvestment that the U.S. government has designated as part of theEB-5 program. I chose New Orleans because it is one of the mostactive and successful regional centers in the United States. It isalso a city where the need for development is especially dire and,consequently, one that provides a tremendous investmentopportunity. What’s more, NobleOutReach, the private companythat handles all aspects of EB-5 investment in New Orleans, isstructured in a way that provides a number of distinct advantagesfor the investor. However, investing in New Orleans is by no meansthe only way to pursue an EB-5 visa. There are numerous otherdesignated regional centers, each of which offers potentiallyprofitable commercial ventures and a secure path to a visa.

THE INVESTORʼS PATH TO A GREEN CARD

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Towards the end of the book, we will survey all other activeregional centers in the United States.

This book is divided into three parts. Part I is an overview of theEB-5 program. The first chapter compares the EB-5 visa to manyof the other available paths to a Green Card. The second chapterprovides a brief history of the EB-5 visa, and discusses thesignificant downsides and strict requirements of the originalprogram. The third outlines the newer EB-5 pilot program anddiscusses the many ways in which it represents a much more secureand flexible path for the potential investor. Part I ends with a side-by-side comparison of the original and pilot programs, so as tomake the differences between the two as clear as possible. For acitizen of China who wishes to simultaneously make a soundfinancial investment and obtain a U.S. Permanent Resident GreenCard, placing the two versions of the programs side-by-side willmake it plain that the pilot program offers a superior alternativeand a singular opportunity.

Part II is devoted to the New Orleans Regional Center. You willfirst hear the story of New Orleans: its devastation at the hands ofHurricane Katrina and its rebirth as an opportunity for investment.The following sections profile NobleOutReach and itsmanagement team, and also include an interview with Timothy O.Milbrath, Executive Vice President of NobleOutReach. The finalchapter of Section II briefly presents the other active regionalcenters in the United States.

Part III takes you through the nuts and bolts of applying for an EB-5 visa. The first section lists and describes the 12 major steps of thevisa application process—from finding a qualified attorney toeventually, if you wish, becoming a NaturalizedAmerican citizen.To help illustrate the various stages of the investment and visapetition, I have included two easy-to-follow flowcharts: one


11

illustrating the stages of the application process, and the othershowing the flow of the investor’s funds. Part III also cataloguesthe different types of documentation that you will be required toprovide when submitting your application. Finally is an afterward.

I have been continually impressed by the insight and clarity that myclients have brought to our conversations, and I wanted this bookto answer their most common questions in as clear and direct away possible. That’s why, at the end of two of the book’s keychapters on the EB-5 program, I have included a section ofquestions and answers (Q&As). The Q&A sections gave me anopportunity to emphasize certain key points that I thought deservedspecial attention. However, most of the Q&As simply reiterateinformation that was also covered in the corresponding chapters,which gives you—the reader—the option of skipping over thesechapter entirely and going right to the questions and answers. Ifyou already have specific questions, or if you feel that the Q&Aformat is the best way for you to start learning about the EB-5program, then you should feel free to go directly to those sections.

I have devoted my career to helping people achieve the life thatthey long for, and I have written this book because I firmly believethat the EB-5 Investor Visa is the best instrument to bring manypeople’s hopes to fruition. My own hope is that reading this bookis the first step on a path to greater wealth and opportunity for youand your family. If you would like to gain a Permanent ResidentGreen Card; if you would like your family to have access to theU.S. educational system, and to be able enjoy all the opportunitiesthat come with living and working in America; if you would likeinvest your capital in for-profit business ventures with the potentialfor a significant return; if you would like to help create jobs andrevitalize local economies in the United States; if you would liketo join the effort to rebuild one of America’s most cherishedcities—then I urge you to keep reading.


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I wish you and your family a bright future in the United States.

VdeKAugust 26, 2008


13

PART ITHE EB-5 INVESTOR VISA

IS THE EB-5 VISA RIGHT FOR ME?A Comparison Between EB-5 and Other Roads

To a Green Card

“Is the EB-5 program the best way for me to pursue a GreenCard?” “Does it fit the needs of my family?” “Will it be the bestavenue to allow my child to study and live in the United States?”“Do I qualify for an EB-5 visa?”

These are the most important questions you can ask yourself, andthis chapter is meant to help you answer them. When we look at amap to find a path to our intended destination, we look at variouspossible routes. We look for the one that will get us to ourdestination the fastest, and with as little difficulty and uncertaintyas possible. In this chapter, we will examine the map together. Theterrain of immigration law in the United States can be complex andconfusing, even for those of us who deal with it on a daily basis. Iwill try to offer you some clarity by comparing and contrasting theEB-5 program with the other possible paths that you might take toa Green Card, hopefully helping you to determine which route isbest for where you and your family are now.

To help make matters as straightforward as possible, I haveincluded a brief summary at the end of every section, where Ireview the advantages, disadvantages and bottom line of each visatype. Our discussion will by no means be exhaustive. My aim is togive you a general understanding of many of the existing means ofobtaining a Green Card, but there are other avenues—notablythrough marriage and family—that we will not discuss.

As you have heard me say before—and will certainly hear me sayagain before the end of this book—if you wish to obtain a GreenCard, I strongly recommend that you find a qualified immigration


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attorney. No book could ever be an adequate substitute for a one-on-one consultation with an attorney who understands your needsand desires, as well as the law.

The F-1 Student VisaI decided to include the F-1 Student Visa in our discussion eventhough it does not offer a path to a Green Card. I’ve included itbecause my firm has had many clients whose primary goal was tosend their child to study in the United States, and this may be yourgoal as well.

The foreign student faces many obstacles to obtaining their F-1Student Visa. To begin with, the student will face the capriciousnature of the University admissions process, including mindlessdecisions like the one recently made by the University of CaliforniaBerkeley when it revoked the admission of 500 students fromAsiabecause of SARS. But once the student has been admitted to auniversity, and has obtained an I-20 (Certificate of Eligibility), heor she can then apply with USCIS1 (United States Citizenship andImmigration Services) to receive an F-1 Visa. To apply, the studentmust provide USCIS with the following:

1. Academic transcripts for all work completed outside theUnited States.

2. Proof of English proficiency, most commonly met by anacceptable score on the TOEFL exam.

3. A financial document verifying availability of funds (i.e.,bank statement), demonstrating the student’s source offinancial support.

4. Letter of support from a sponsor if the student is notproviding funds.

If USCIS approves the application, the student will then face aninterview at the Consulate. The Consular Officer has absoluteauthority to grant or deny the F-1 Visa. Should the Officer


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arbitrarily be suspicious of any of the documentation, or suspectthat the student’s underlying intent is to immigrate to the UnitedStates—rather than simply going to school—the visa will be denied.

If the interview is successful, the F-1 student will be grantedpermission to remain in the United States, but only until thecompletion date noted on the I-20 Form, plus 60 days. The studentmust remain enrolled in school full-time and meet all other termsand conditions of the F-1 status, or the student will be required toreturn home immediately. The student is not authorized to beemployed while in school, and should the student wish to transferto another university, the process must restart from the beginning.

An important factor to keep in mind if your son or daughter wishesto attend a state-sponsored university is that having a Green Cardprovides the student with generous tuition benefits, which the F-1visa does not. For example, in California, an international studentat any University of California will pay approximately anadditional $20,000 each year. Assuming the student wishes toobtain an undergraduate degree and go on to graduate school,paying international tuition would result in an additional expenseof $120,000 at the end of six years. A student with an EB-5 visa,by contrast, would qualify for in-state tuition and save this sum.

F-1 Visa SummaryAdvantages: The F-1 visa is well suited for a student whose soleintention is to obtain a degree from an American university.Disadvantages: The F-1 visa provides no path to a Green Card,which deprives the student of lower tuition rates and the right tohold a job.Bottom line: If a Green Card is your goal, the F-1 visa will notprovide you with a direct route, and you’ll have to payconsiderably higher tuition along the way.


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The L-1 Intra-company Transferee VisaLike the F-1, the L-1 visa is not designed to directly provide thevisa holder with a Green Card. However, obtaining an L-1 visa canserve as the first step on a path to a Green Card, assuming all otherbusiness and application factors are successful.

The L-1 is designed to allow a company doing business in Chinato open or acquire an American subsidiary and transfer two keyemployees to operate and manage the business. These twoemployees, if they qualify, can obtain L-1 visas. The foreign parentcompany in China must own at least 51% of the U.S. subsidiary.The subsidiary can be a “start-up” in the United States, or it can bean existing American business acquired by the parent company inChina. If all the basic requirements are met, two employees of theparent company in China may come to the United States to managethe subsidiary for a period of seven years. With proper planning—and if the business succeeds—the American subsidiary of theChinese parent company can serve as the source of a Green Cardfor the designated executive or manager.

The spouse and children of the L-1 employee may also reside in theUnited States and enjoy essentially the same benefits as theprimary visa holder. The children of the L-1 employee can attendschool in the United States and enjoy all the educationaladvantages associated with U.S. residency. The L-1 employee’sspouse will receive employment authorization, allowing him or herto work for any employer in the United States.

To qualify for a visa, the L-1 employee must have worked for theparent company in a managerial or executive capacity role, or mustpossess a specialized knowledge or capacity to do a particular typeof work necessary to the new U.S. subsidiary. An additionalrequirement is that the L-1 employee—or “transferee”—must haveworked for the parent company in China for at least one year of the


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last three years prior to coming to the United States, and theemployee must be coming to the United States to work for thesubsidiary in a position consistent with his or her former role inthe parent company.

The maximum length of the stay under the L-1 depends on whetherthe employee being transferred to the United States is classified asan executive/managerial role or is a possessor of specialknowledge. If the applicant is an executive/managerial employee,the L-1 has a maximum duration of seven years. If the applicantis in a non-managerial/executive capacity, but possesses aspecialized knowledge, the visa is limited to five years.

The length of the visa is also dependant on the type of company.The status of the L-1 employee will be approved for an initialperiod of three years if the U.S. subsidiary is a pre-existingcompany. If the U.S. subsidiary is a “start-up” company, the L-1status is initially approved for a period of one year. At the end ofone year, with the help of your attorney, you will need todemonstrate to the United States government that you have put inplace the business plan which you presented as part of yourapplication. If you fail in this regard, your L-1 will end, along withyour authorized stay in the United States.

L-1 Visa SummaryAdvantages: If a Green Card is your goal, the L-1 is certainly aviable alternative if you are is unwilling or unable to make theinvestment required by the EB-5 program. The L-1 is ideally suitedfor an executive or owner of a Chinese company who wishes toopen a U.S. subsidiary and transfer a key executive/managerialemployee to establish and manage the U.S. subsidiary.

Disadvantages: As I always warn L-1 clients, the visa is grantedand extended based entirely on the success or potential success of


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the United States subsidiary. Should your business not perform asanticipated, the L-1 could be lost, along with any potential path toa Green Card.

Bottom line: If you’re not interested in having your legal residencydepend on the success of your business, you should probablychoose a different route.

The EB-1 and EB-2 “Extraordinary/ExceptionalAbility” VisasIn a desire to attract individuals of “extraordinary ability,” theUnited States government created the EB-1 visa category.According to USCIS, qualified applicants possess “extraordinaryability in the sciences, arts, education, business, or athletics whichhas been demonstrated by sustained national or internationalacclaim and whose achievements have been recognized in the fieldthrough extensive documentation. You must be one of that smallpercentage who have risen to the very top of the field of endeavorto be granted this classification.”2 USCIS uses the example of thewinner of the Nobel Prize as a person who clearly qualifies.

If you believe you fit this definition of a person of “extraordinaryability,” the EB-1 may be a viable path to a Green Card. However,you will be required to provide extensive documentation, andultimate success is notoriously unpredictable. The reality, whichUSCIS acknowledges, is that only a very few will qualify underthis program. In light of this high standard, USCIS allowsapplicants to present such evidence as the following:

1. Receipt of nationally or internationally recognized prizes orawards for excellence.

2. Membership in associations that demand outstandingachievement of their members.

3. Published material about the alien in professional or majortrade publications or other major media.

4. Evidence that the alien has judged the work of others, eitherindividually or on a panel.


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5. Evidence of the alien’s original scientific, scholarly, artistic,athletic, or business-related contributions of majorsignificance to the field.

6. Evidence of the alien’s authorship of scholarly articles inprofessional or major trade publications or other majormedia.

7. Evidence that the alien’s work has been displayed at artisticexhibitions or showcases.

8. Performance of a leading or critical role in distinguishedorganizations.

9. Evidence that the alien commands a high salary or othersignificantly high remuneration in relation to others in thefield.

10. Evidence of commercial successes in the performing arts.

The EB-2 [or “exceptional ability” classification] is similar to theEB-1 in several respects. For one, the EB-2 is also based on talentand achievement. Qualified applicants are “members of theprofessions holding advanced degrees or their equivalent and alienswho because of their exceptional ability in the sciences, arts, orbusiness will substantially benefit the national economy, cultural,or educational interests or welfare of the United States.”3

A second similarity between the EB-1 and EB-2 is that both visaprograms require extensive documentation. To qualify for an EB-2 visa, the immigrant must provide at least three of the sixfollowing forms of documentation:

1. An official academic record showing the alien has a degree,diploma, certificate or similar award from a college,university, school or other institution of learning relating tothe area of exceptional ability.

2. Letters documenting at least ten years of full-timeexperience in the occupation being sought.

3. A license to practice the profession or certification for aparticular profession or occupation.


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4. Evidence that the alien has commanded a salary or otherremuneration for services which demonstrates exceptionalability.

5. Membership in professional associations.6. Recognition for achievements and significant contributionsto the industry or field by peers, government entities,professional or business organizations.

In addition to the above, the EB-2 petitions must generally beaccompanied by an approved, Labor Certification from theDepartment of Labor.

There are a number of other EB categories, but the amount of timethat even successful applicants must wait to obtain their GreenCard—which is often several years—rules these EB categories outfor most individuals seeking U.S. residency. The EB-5 visa, ofcourse, is not one of them.

EB-1 and EB-2 Visa Summary

Advantages: If you are a person of “extraordinary” or“exceptional” ability, then the EB-1 or EB-2 visa may provide youwith a direct path to a Green Card.

Disadvantages: Both visas require considerable documentationand involve an unreliable and strict application process. Being aperson of extraordinary ability, on the one hand, and successfullyconvincing USCIS of this fact, on the other, are two very differentthings.

Bottom line: It’s a rare person who qualifies for these visas, but ifyou are such a person, the EB-1 or EB-2 visa may be right for you.


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E-1 “Treaty Trader” and E-2 “Treaty Investor” VisasThe E-1 and E-2 visas are based on a treaty with the immigrant’shome country. If you are from the Peoples Republic of China, youare not eligible for either of these visas. At the date of this writing,the United States does not have the necessary treaties in place withthe People’s Republic of China.

The E visas are based on treaties that are designed to promote tradeand investment between the United States and the treaties’signatories. Individuals and companies from these countries canobtain visas to live and work in the United States. There are twoseparate E visa types: the E-1 “Treaty Trader” Visa and the E-2“Treaty Investor” Visa.

The E-1 Treaty Trader Visa

The E-1 visa is available to citizens and companies from treatycountries that engage in a significant amount of international tradewith the United States. The following countries have treaties withthe United States that allow qualifying nationals to apply for E-1Treaty Trader status:

Argentina Taiwan France Italy Netherlands SwedenAustralia Colombia Germany Japan Norway SwitzerlandAustria Costa Rica Greece Korea Oman ThailandBelgium Denmark Honduras Latvia Pakistan TogoBolivia Estonia Iran Liberia Philippines TurkeyBrunei Ethiopia Ireland Luxembourg Spain U.K.Canada Finland Israel Mexico Suriname Yugoslavia

The amount of trade must be high enough to justify granting a visato the individual trader or the trader company’s employees. Tradewith the United States must makeup the majority (50% or more) ofthe company’s international trade. Although USCIS sets no


25

minimum amount of trade required to qualify, the greater theamount of trade, the greater the justification for granting the visa.

The E2 Treaty Investor VisaThe E-2 visa is based on investment rather than trade, and isintended for companies or individual investors who purchase andoperate a business in the United States. The following countrieshave qualifying treaties with the United States:

Argentina Taiwan Georgia Kyrgyzstan Pakistan SwitzerlandArmenia Colombia Germany Latvia Panama ThailandAustralia Congo Grenada Liberia Philippines TogoAustria Costa Rica Honduras Luxembourg Poland Trinidad and

TobagoBangladesh The Czech Iran Mexico Romania Tunisia

RepublicBelarus Ecuador Ireland Morocco Senegal TurkeyBelgium Egypt Italy Moldavia The Slovak The Ukraine

RepublicBosnia- Estonia Jamaica Mongolia Spain UnitedHerzegovina KingdomBulgaria Ethiopia Japan Netherlands Sri Lanka UzbekistanCameroon Finland Kazakhstan Norway Suriname YugoslaviaCanada France Korea Oman Sweden

Please note that, at the time of this writing, treaties have beensigned, but have not been ratified, with the following countries:Albania, Azerbaijan, Haiti, Jordan, Nicaragua, and Russia.

As with the E-1 visa, USCIS has not set a minimum amount ofinvestment in order to qualify. However, as a general rule, the moresubstantial the investment, the more likely USCIS will feel the visais justified. An important requirement of the E-2 visa is that theinvestment must be “active,” meaning that the applicant must


26

actively operate the business in the United States. Merely buyingproperty or company stock (a “passive” investment”) would notbe sufficient to qualify for a visa. For applicants, a problematicaspect of the E-2 program is that the investment must be madebefore the visa petition is submitted, and there is no guarantee itwill be successful. Pursuing a visa through the E-2 program, inother words, entails considerable risk.

The E-1 and E-2 Visas—Practical IssuesThe E-1 and E-2 visas have some significant drawbacks. The firstis that neither directly leads to a Green Card. The second is thatthe spouse and children of the visa holder are not permitted to workin the United States, nor are they eligible to receive the reducedcollege tuition of a U.S. resident. And, finally, the longevity of anE visa is entirely dependent on the success of the qualifyingbusiness. In theory, E visas allow one to stay in the United Statesindefinitely. Though visas are initially granted for between two andfive years, they can be continually renewed. In reality, however,an E visa only lasts as long as the business on which it is based. Theoriginal justification for the visa—the amount of trade or value ofthe investment—must still be present for the visa to be renewed. Ifthe level of trade diminishes, or if the investment loses value, thevisa could easily expire.

E Visa SummaryAdvantages: The E visa may be well suited for a trader or investorwhose sole interest is to do business in the United States.Disadvantages: The E visa is only available for individuals froma country with which the United States has the necessary treaty.The E visa, though theoretically indefinite, provides no path to aGreen Card. Additionally, the E visa does not allow familymembers to be employed in the United States or enjoy thesignificant benefits of resident college tuition. And, finally, for theE-2 visa, the investment must be made before application issubmitted, and with no assurance of success.


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Bottom line: If a Green Card is your primary goal, an E visa is farfrom an ideal vehicle.

The H-1B Employment VisaThe H-1B is another temporary visa category that is used by someimmigrants as a first step on a path to a Green Card.At the time of thiswriting, the United States grants 65,000 H-1B employment basedvisas each year. However, this visa category receives an especiallyhigh number of applicants. Within a very short time after they havebeen released, all the available visas have usually been issued.

The H-1B is a visa that applies to what USCIS views as “SpecialtyOccupations.” The idea behind this visa is to allow an Americanemployer to sponsor a foreign worker, who can legally immigratethe United States to fill an employment position that requiresspecial skills or knowledge—a job for which the employer isunable to find a qualified American citizen.

To qualify, the first condition is that the applicant possess abachelor’s degree or higher. The second condition is that theimmigrant must have been offered a job by a sponsoring employerwho wishes to fill a position that, by its nature, requires a personwho has a minimum of a Bachelor’s degree or higher. The thirdrequirement is that the applicant must have the requiredqualifications and practical experience to fill the position. The finalrequirement is that employer must demonstrate that, with duediligence, he or she has been unable to recruit a qualified UnitedStates citizen to fill the position.

The H-1B Visa is initially issued for up to three years, but may beextended for a maximum of six years. As I mentioned, an H-1Bcan be a first step toward a Green Card, but the next step is adifficult one. The visa holder can apply for a Green Card if theemployer or another company is willing to apply for a LaborCertification on the immigrant’s behalf.


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Both the H-1B and a Labor Certification are based on the sameprinciple—they are meant to allow a worker to immigrate to theUnited States and work for an employer who cannot find aqualified American citizen to fill the position. However, there isbig difference between the two: a Labor Certification demands ahigher level of commitment on the part of the employer and theforeign worker, and it requires far more proof that the employerdid everything possible to find a qualified U.S. citizen for the job,but could not. The Labor Certification process has two majorstages. The first stage requires the applicant to present his or hercase to the United States Department of Labor. If it is approved atthis level, the applicant then petitions USCIS, which reexaminesthe case in its entirety.

My firm has helped many individuals with H-1B Visas and LaborCertifications on their way to a Green Card, but it is always a longand uncertain process. The number of employment visas availableeach year is limited—just how limited depends on the type of jobthey are applying for and, in many cases, on the immigrant’scountry of origin. It can take years, even a decade, before a GreenCard is finally granted.

While the H-1B visa makes sense for certain people, I do notrecommend it as a path to immigration—nor particularly as ameans to obtain a Green Card—if the person has other optionsavailable.

The H-1B Visa SummaryAdvantages: The H-1B visa can be an initial step toward a GreenCard and allow you to temporarily work for your H-1B employeron your way to this goal.

Disadvantages: The H-1B has limited availability, is employmentdependent, and has a duration of only six years. Obtaining a Green


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Card through an H-1B visa requires, at a minimum, a successfulLabor Certification.

Bottom line: The H-1B is not a recommended path to a GreenCard if another viable option exists.

The EB-5 Investor VisaIf you are prepared to invest $500,000 in the U.S. economy, it isvery likely that the EB-5 visa represents the best possible path toa Green Card for you and your family. With few exceptions, this isthe only path to a Green Card that is direct and guaranteed, as longas you are able to make the necessary investment and meet certainbasic requirements. And the benefits are unrestricted: thesuccessful EB-5 applicant and his or her family are immediatelyable to live, work and go to school in the United States. After 21months, the applicant can petition the government to make theGreen Cards permanent. And after 5 years, the investor and theinvestor’s family qualify for naturalization as full Americancitizens.

I hope after reading this chapter you have gained a betterunderstanding of the options available to you. As we have seen,each visa type has its advantages, but most come with significantdrawbacks. Many of the visas we have discussed are bothtemporary and conditional, and many depend on factors outsideyour control. A visa that allows you to immigrate to the UnitedStates; a visa that does not dictate what you do or where you live,and cannot be revoked if your fortunes change; a visa that providesyou with unconditional access to the benefits of U.S. residency—such a thing is a rare opportunity. The EB-5 visa, as we will see, issuch an opportunity.


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ABRIEF HISTORY OF THEEB-5 VISA PROGRAM

Today, the EB-5 program is a phenomenal opportunity, but itwasn’t always that way. When it was first created, applying for avisa was a virtual nightmare for potential investors. I hope thatlearning a bit about the history of the EB-5 visa will help youappreciate what a fantastic opportunity the current program truly is.

In an effort to attract foreign investment in the economy, the UnitedStates Congress created the original EB-5 visa program in 1990,which set aside 10,000 new EB-5 visas per year. The originalprogram required a 1 million dollar investment in a newcommercial enterprise in the U.S. However, the program alsoallowed the amount of the investment to be reduced to $500,000 ifit was made in a “targeted employment area,” whereunemployment was especially high. The former U.S. immigrationagency—the INS (Immigration and Naturalization Service)—wasput in charge of administering the program.4

What made the original program so perilous and oppressive forinvestors were a series of conditions that had to be met in order toqualify for a visa. There were five primary requirements, each ofwhich presented their own unique and daunting challenge. Let’sexamine them one-by-one.

A significant hurdle for potential investors was the “newcommercial enterprise” requirement. According to the originalprogram, it was not enough to simply invest the necessary sum ofmoney in a business venture. To qualify for a visa, the applicantwas obliged to show that the investment created an entirely newbusiness. The investor must specifically have been present at the“inception” of the enterprise. This requirement was especially


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prohibitive for those intending to invest in a Limited Partnership.In a typical Limited Partnership, once the Limited Partnership hasbeen created, the General Partner will seek additional investmentfrom new limited partners. However, because of the“establishment” precondition, limited partners would not qualifyfor a visa.

The “new commercial enterprise” requirement also dramaticallyincreased the financial risk for investors. Of course, investing in abusiness always involves significant risk. But satisfying thisrequirement meant not only investing in a business, but alsostarting a business, and—on top of that—starting a business in anarea that was most likely suffering economically. It is difficult toimagine a riskier undertaking. This requirement did little toconvince potential investors that the government cared aboutprotecting their capital. To the contrary, the “new commercialenterprise” condition seemed to suggest that the unstated intentionof the program was to lure foreigners into making the kinds of riskyinvestments that few Americans were willing to make.

A second requirement, and one of the most burdensome, was thatof creating 10 new jobs. According to the original EB-5 program,the new enterprise must directly create employment positions for10 full-time workers, who could not include the investor ormembers of the investor’s family. It was not enough to show thatthe investment had the effect of producing 10 jobs by contributingto the local economy or increasing productivity. The newcommercial enterprise itself must have created 10 jobs. This, asyou might imagine, represented a difficult feat for a single person’sinvestment.

Another oppressive condition was the “active management”requirement. To qualify for a visa, the investor was obliged to playan active role in the day-to-day management of the business.


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Investing one million dollars, establishing a new business, creatingat least 10 jobs—these were still not enough to qualify for a visaunder the original program. Applying for an EB-5 visa meanthaving to be a business manager as well.

This condition also meant that investors had no choice but to livewhere the business was located. Not only did this restrict thefreedom of the applicant’s family to live and work wherever theywished, but it often conflicted with one of the most importantbenefits of U.S. residency. For many applicants, giving theirchildren the opportunity to go to school in the United States is animportant goal of pursuing a visa. InAmerica’s university system,state residents are more likely to be admitted to the state’sUniversities, and they pay significantly reduced tuition. So, whileliving in a particular state might be beneficial in terms of thechildren’s education, it may make it difficult, even impossible, foran applicant to establish a financially viable business in a targetemployment area. In the end, the active management requirementsimultaneously multiplied the work of the applicants in applyingfor a visa, and considerably limited their freedom, as well as theirfamilies’ freedom, to enjoy the benefits of U.S. residency.

A fourth requirement—and possibly the most ill defined—was thatthe new enterprise must “benefit the U.S. economy.” You mightwonder, doesn’t investing one million dollars in a new business inthe United States automatically constitute a benefit to the U.S.economy? Not according to the original EB-5 program, whichincluded this requirement as a separate condition that thecommercial venture must meet in order for the investor to qualifyfor a visa. For investors, the question then became, what does“benefit” mean, and how is it determined? Unfortunately, the lawthat created the EB-5 visa gave no specific definition of “benefit,”nor did it give guidelines for how to determine whether a particularenterprise met this condition. The result was that the “benefit”


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requirement was almost completely subjective, leaving it entirelyup to the former Immigration and Naturalization Services (INS) todecide whether a particular business enterprise satisfied thiscondition. The investor had no way of knowing what actionsneeded to be taken to help insure that the INS considered thisrequirement satisfied, thereby introducing an additional level ofuncertainty into an already uncertain process.

The significant financial risk involved in applying for an EB-5visa—the perilousness of starting a new business in aneconomically depressed area—was one of the most significantdeterrents for potential investors. But the last of the five primaryrequirements—the “at risk” requirement—introduced an entirelydifferent type of risk. According to this condition, the investorcould only apply for a visa after the funds had been fully invested.The investor’s capital must have been “at risk,” in other words,before the visa application could be considered. This meant thatan investor’s worst nightmare might easily have come true: thebusiness fails and the visa application is denied. Imagine it: youhave done all that was necessary to create a new business in theUnited States—creating a business plan, investing the capital,launching the business, managing its affairs, creating 10 full-timejobs—and then the business fails. Though you have lost a greatdeal, you are at least consoled by the knowledge that your effortshave earned you and your family the right to live in the UnitedStates. Imagine how heartbroken you would be to then learn thatyour visa application had been denied.

When you consider all of these requirements together, qualifyingfor a visa under the original program seems a virtuallyinsurmountable task, not to mention an extraordinary risk. But sofar we’ve been examining the requirements in the abstract.Satisfying these conditions and proving that they had been satisfiedwere two entirely different things. In the original EB-5 program,


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providing the INS with sufficient proof that the necessaryrequirements had been met was a burden that fell entirely on theshoulders of the investor.And this was no easy task.A complete listand discussion of all the documentation that the former INSdemanded from the investor could be a book on its own.

In light of such burdensome requirements and such a severeapplication process, it is little wonder that the original programattracted nowhere near the number of investors the U.S. Congressoriginally had in mind. When faced with the prospect of losingtheir entire investment, and with nothing to show for it, manyinvestors understandably decided to pursue a different route to U.S.residency. Since the purpose of the program was to encourageinvestment, one might wonder why it seems like it was expresslydesigned to do the reverse.

The answer has a great deal to do with the mentality that the formerINS brought to the EB-5 visa. In addition to administering theprogram, the INS played a significant role in establishing anddefining its requirements, as well as enforcing them. It is difficultfor someone who has had little exposure to the workings of theINS to grasp the peculiar mindset of the organization. In itscollective mind, the world is teeming with people who would doalmost anything to live and work in the United States—people whoshould not be trusted. The responsibility of the INS, according tothis way of thinking, was to limit the flow of undeservingimmigrants by making the requirements for entry as restrictive aspossible.

This is not meant as a criticism of the INS. There were undoubtedlyabuses of the EB-5 program that justified the INS crackdown.However, the point is that there was a fundamental mismatchbetween the goal of the program and the mindset of theorganization that was responsible for administering it. The intent


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behind the program was to bring people and investment into thecountry. The function of the INS, from a certain perspective, wasthe polar opposite: to keep people out. In hindsight, it seemsentirely predictable that, when faced with the task of enforcing andreforming the EB-5 visa application process, the INS would dowhat it had always done so well: closed loopholes, stiffenedrequirements and made it harder for foreigners to get a visa. Theunfortunate results were that the program failed to strengthen theeconomy to the degree that U.S. lawmakers had hoped, andqualified investors were denied a fair, flexible path to permanentresidency.

Fortunately, the story of the EB-5 visa program does not end here.


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Q&AS: THE ORIGINAL EB-5 PROGRAM

Q:Why should I learn about the history of the EB-5 program?Since it was initiated, the EB-5 program has changed dramatically.Applying for a visa under the original programs was a nightmarishordeal for many investors. Fortunately, the U.S. Congress realizedthat changes were needed, and created a much more secure andreasonable application process. Learning about these changes, inmy mind, will contribute to both your understanding and yourappreciation of the current EB-5 program. In addition, you mayhear horror stories from friends and associates about theirexperiences with the former program and this chapter will help youput these stories in a proper context.

Q:When and why was the EB-5 program created?The EB-5 investor visa program was created in 1990 with the goalof attracting foreign investment in the United States.

Q: How did it work?Applying for an EB-5 visa was, theoretically, a simple process: theapplicant invests the required amount in the U.S. economy and theapplicant is then granted full immigration benefits. However, thereality of the original program was far more complicated.

Q: How much was one required to invest?The standard investment was set at one million dollars. However,it could be reduced to $500,000 if the investment was made in ruralarea, or a “targeted employment area.”


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Q:What was a “targeted employment area”?A targeted employment area was defined as a geographical areawith an unemployment rate 50% higher than the national average.

Q: What were the main requirements to qualify for an EB-5visa under the original program?The requirements of the original problem were incrediblyrestrictive, and they imposed significant risks on investors. Thecriteria were so burdensome, in fact, that only a small fraction ofthe anticipated number of investors took advantage of the program.There were five principal requirements that the investor—and theinvestment—had to meet in order to qualify for a visa.

1. The “new commercial enterprise” requirement.2. The “job creation” requirement.3. The “active management” requirement.4. The “benefit the U.S. economy” requirement.5. The “at risk” requirement.

Q:What was the “new commercial enterprise” requirement?It is hard to believe, but this condition actually required investorsto start an entirely new business—simply investing the funds in anexisting business was not enough. This requirement alsospecifically obliged the investor to be present at the “inception” ofthe new commercial enterprise. Investing in a limitedpartnership—which, today, is a common way of obtaining an EB-5 visa—was therefore not an option under the first program.

Q: But isn’t starting a new commercial enterprise aninordinate risk, especially in an economically depressed area?Absolutely, and this is what turned many potential investors awayfrom the program.


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Q:What was the job creation requirement?Of the five primary requirements, this was one of the most difficultto satisfy. The original EB-5 program mandated that thecommercial enterprise create—and fill—10 new, full-timeemployment positions. It also specified that neither the investornor the investor’s family could count towards the 10 jobs. Andcreating this many jobs was, to say the least, a difficult feat for aninvestment of the required size.

Q:What was the “active management” requirement?The “active management” requirement obliged the investor to playan active role in the day-to-day management of the businessenterprise. This condition required that an applicant be not only aninvestor—and not only an entrepreneur—but a business manageras well. This also gave the investor no choice but to live where thebusiness was located, denying the applicant and the applicant’sfamily the freedom to live, work and go to school wherever theychose.

Q:What was the “benefit the U.S. economy” requirement?The law that established the EB-5 program specifically stated—asa separate requirement—that the applicant’s investment must“benefit the U.S. economy.” One would think that investing onemillion dollars in a new business venture, and creating 10 new jobs,would automatically satisfy this condition. However, because itwas included as a separate requirement, the INS interpreted the“benefit” clause as mandating an additional benefit to the economy.Exactly what kind of benefit, no one really knew—neither the INSnor the potential investors. The “benefit” requirement, in otherwords, was almost entirely subjective, giving the INS broadlatitude to interpret it as it wished. This put investors in theprecarious position of having to satisfy a requirement that theydidn’t fully understand.


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Q:What about the “at risk” requirement?According to this condition, the applicant’s funds must be fullyinvested—at which point the capital is said to be “at risk”—beforethe visa petition can be considered. The terrifying result of thisrequirement was that an investor could start a new business, whichmight then fail, only to have the visa application denied.

Q: What about the application process itself? How did oneapply for an EB-5 visa under the original program?Applying for a visa was a matter of proving to the INS—withsufficient documentation—that all the necessary requirements hadbeen met. These included the requirements that we discussed here,as well as others. What made the original program soburdensome—besides the requirements themselves—was that theinvestor was essentially alone in proving that they had beensatisfied. And this was an enormous and uncertain task, requiringreams of documentation, with no guarantee that the business thatthe investor had worked so hard to create would qualify under theprogram.

Q:Why was the original program so restrictive?The answer is a bit complicated, but it had much to do with themindset of the former INS. In my opinion, there was a fundamentalopposition between the purpose of the EB-5 visa—to bring peopleand investment in to the country—and the function of the INS,which was, more often than not, to keep people out. When the INSwas put in charge of administering the program, they acted exactlyas one would predict. They made the already onerous requirementseven more restrictive. The result was unfortunate, not only forpotential investors, but for America as well.


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THE EB-5 PILOT PROGRAM

The latest version of the EB-5 program—usually called the “pilot”or “regional center” program—is what the first EB-5 visa shouldhave been all along: a real incentive to invest in the United States,one that offers a secure and flexible path to a Permanent ResidentGreen Card for the investor and their family.

Today, the pilot program is a phenomenal opportunity. In thischapter, we will see that each of the requirements of the originalprogram were either made far more reasonable, or done away withentirely. But the difference between the two isn’t just a matter ofmore flexible requirements. It goes much deeper than that. Thegreatest difference isn’t in the requirements themselves, but in whois responsible for making sure that they are satisfied. In the originalprogram, investors were essentially on their own in starting a newbusiness and—during the application process—proving to the U.S.immigration agency that the investment met all the necessarycriteria. And this, as you can probably imagine, was an enormousburden. The pilot program actually relieves the investor of thisburden, radically reducing the work required to apply for a visa.And this difference, in my opinion, is difficult to exaggerate.

The pilot program was created as an experiment—as an attempt tocorrect the many flaws of the original EB-5 visa. But for the newprogram to continue, the law required the U.S. Congress to renewit every five years.As an experiment, the pilot program has clearlybeen a success—both for foreign investors and Americancitizens—and it is no surprise that Congress has repeatedly givenit their sample of approval. The pilot program is currently up forrenewal in March of 2009. I am confident, not only that thetemporary program will soon be reinstated, but that it will be madea permanent addition to U.S. immigration law.


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The pilot program was created only three years after the first EB-5 visa was established. It didn’t take long for U.S. lawmakers tocatch on to the fact that far fewer investors were applying for avisa that they had anticipated. Realizing that program’sburdensome requirements and complicated application processwere responsible for turning investors away, Congress initiated atemporary “pilot program” in 1993, experimenting with acompletely different vision of the visa application process. Thepilot program set aside 5,000 “regional center” visas a year—halfof the 10,000 total EB-5 visas available annually.

To qualify for a visa under the pilot program, an applicant mustinvest $500,000 in an area or business venture that USCIS hasawarded the status of “designated regional center.” The necessaryamount of the investment is certainly one of many advantages of thepilot program. To apply for the original visa, the standard amountof the investment was set at one million dollars, unless it is wasmade in an area that had especially high unemployment. The pilotprogram never requires an investment greater than $500,000,regardless of what regional center you decide to invest in.

So what exactly is a “designated regional center”? The pilotprogram defines a regional center as any economic unit, public orprivate, which focuses on a certain geographical area and “seeks topromote economic growth though increased export sales, improvedregional productivity, creation of new jobs, and increased domesticcapital investment.”5 Put simply, a regional center is an entity thatUSCIS has given permission to attract foreign investors under theEB-5 pilot program. Any number of entities can be given regionalcenter status, including a city government or a private company. Infact, a business development company will often collaborate witha city government in applying to USCIS, in order to establish thearea as a regional center.


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For an entity to become a regional center, it must submit anapplication to USCIS in which it proposes new commercialenterprises and investment opportunities. It is then up to USCIS todetermine whether the proposed business ventures will contributeto the regional economy and meet all the necessary criteria forawarding EB-5 visas. If the application is approved, the businessdeveloper can form a limited partnership or corporation, and canbegin attracting foreign investors.

This means that, if you invest in a regional center, the businessenterprise that you invest in has already been approved! Once abusiness developer becomes a regional center, USCIS has alreadydetermined that the commercial enterprise meets all the majorrequirements! It is as if the business developer has submitted yourapplication for you, before you have even made an investment.While applying for an EB-5 visa still requires substantialdocumentation from the investor—and although there are neverany guarantees—this fact about the pilot program dramaticallyreduces the amount of work, not to mention the risk, involved inobtaining a visa.

And that’s not all. Remember the five major requirements of theoriginal EB-5 visa? Let’s revisit each of them, so we get a clearpicture of how the pilot program has made these conditions fareasier to satisfy, and a more detailed understanding of how it hasshifted the burden from the investor to the regional center.

Let’s start with the “new commercial enterprise” requirement.Under the first EB-5 program, the investor was required to createan entirely new commercial enterprise. The investor must also havebeen present at the “inception” of the business. This condition nolonger exists under the pilot program. It’s enough to simply investin an existing enterprise, as long as it was created after November29, 1990. This, of course, is how it should have been from the start.


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The pilot program therefore eliminates the excessive risk involvedin starting a business from the ground up. And the job of planningand creating a new business enterprise no longer belongs to theinvestor. It’s up to the regional center to create investmentopportunities that will satisfy the criteria for an EB-5 visa. Theinvestor’s job is to be just that: an investor.

What about the job-creation requirement? Under the originalprogram, the investor was obliged to prove that the new businessdirectly created at least 10 jobs. Though it still requires thatinvestment create 10 jobs, the pilot program changed the meaningof this requirement entirely. While the original program requiredthat the new enterprise itself create and fill 10 new full-timeemployment positions—“directly” creating the jobs—the pilotprogram only requires that the investment indirectly create 10 jobs.So how is this determined? The answer: industry job-multiplierstatistics. If these statistics show—as often they do—that aninvestment of $500,000 will contribute to the regional economy ina way that will likely create or save at least 10 jobs, then thisrequirement will be satisfied. The investment itself need notdirectly create any jobs at all. But again, satisfying this requirementis the responsibility of the regional center, not the investor.

Next, the “active management” requirement.” Those applying forthe original EB-5 visa were obliged to prove that they were takingan active role in the day-to-day management of the business.Whilethe pilot program does technically require the investor toparticipate in management or policymaking, this participation isoften largely symbolic. Many regional centers make investors intolimited partners, which is enough to demonstrate that they aresufficiently involved in the project. The reality is that simplymaking the investment in an approved regional center is enough tosatisfy this requirement. And this means that investors and theirfamilies can live anywhere they wish, regardless of what regional


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center they invest in. Investors have the freedom to live whereveris best for them and their families, giving their children betteraccess to state universities.

What about the requirement that the investment must “benefit theU.S. economy”? While also still technically part of the pilotprogram, this condition is no longer anything the investor need beconcerned about. When a business developer is given the status ofregional center, it is more or less assumed that investing in the pre-approved commercial enterprise would benefit the U.S. economy.When a city applies for regional center designation, it has to makeprecisely this argument. In effect, the pilot program ensures thatthis requirement too is satisfied for you.

And, finally, the “at risk” requirement. The pilot program continuesto require that the investor’s funds be “at risk,” before his or herapplication can be considered. But like the job-creationrequirement, this condition can be satisfied in a way that offersmore flexibility and security. The investor’s capital need not befully invested for this requirement to be satisfied—it can be held“in escrow” until the investor’s application is approved. If you arenot familiar with the term, escrow is a legal arrangement accordingto which a person’s assets can be held by a trusted third party—often a bank—until the terms of an contract are satisfied, at whichpoint the third party will transfer the assets to whomever thecontract designates. In other words, the EB-5 investor signs acontract with the regional center, which says that, once theinvestor’s application is approved, the funds will be transferred tothe regional center and fully invested in the approved businessenterprise. If, on the other hand, USCIS denies the application, thefunds will be returned to the investor. (Though this arrangement isnot available in most regional centers, it is technically permittedunder the pilot program. The New Orleans Regional Center, whichwe will discuss in detail in Part II, does offer this arrangement.)


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This arrangement effectively eliminates the risk of a depreciatedinvestment and a denied application—a significant disadvantageof the original program—and creates an excellent safeguard forinvestors.

A final advantage—and by no means a minor one—is that the U.S.government has instructed USCIS to “give priority” to visaapplications that are made through the pilot program, rather thanthrough the original program.6 It surprises many investors to learnthat the original program still exists. Although positive changeshave been made to the original program, its basic disadvantagesremain. Hoping to further encourage investors to choose the pilotprogram, the U.S. government has made the program even moreattractive by promising to fast track investors’ applications.

I hope that, in reading this chapter, you have seen for yourself thatthe pilot program represents a far more secure and dramaticallyless burdensome route to obtaining a visa. I believe the EB-5 visais called an “investor visa” for a reason. Investors who apply for anEB-5 visa should be allowed to be just that: investors. EB-5applicants should not be forced to also be business developers,entrepreneurs, and business managers. I believe that investing$500,000 in the U.S. economy earns you and your family the rightto enjoy all the benefits of living and working inAmerica.And thisidea, it seems to me, is at the heart of the regional center program.


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Q&AS: THE PILOT PROGRAM

Q:What’s the “Pilot Program,” and why is it called that?The Pilot Program—or the “regional center program,” as it is oftencalled—is a more recent alternative to the original EB-5 program.It is called the “Pilot Program” because it was initially created asa temporary, experimental program, but has recently been renewedfor the third time and is now the most common way of obtainingan EB-5 visa. It is very likely that, within the next five to ten years,the U.S. Congress will vote to make the Pilot Program permanent.

Q:When was it created, and why?The EB-5 Pilot Program was established in 1993, only three yearsafter the original program. It was created because it becameimmediately apparent that the original program, because of itsstringent requirements and complicated application process, wasfailing to attract foreign investors. The goal of the Pilot Programwas to create a more reasonable, flexible and attractive path topermanent U.S. residency.

Q: How does the Pilot Program work?The applicant is required to invest $500,000—not one milliondollars—in a “Designated Regional Center.”

Q:What is a “designated regional center”?A regional center is an area or private company that USCIS hasgiven permission to attract foreign investors under the PilotProgram.A regional center is defined as any economic unit, publicor private, which focuses on a certain geographical area and “seeksto promote economic growth though increased export sales,improved regional productivity, creation of new jobs, and increaseddomestic capital investment.”


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Q: Can any area or private company become a regionalcenter?Several different kinds of “economic entities” can be givenregional center status, including a city government or a privatecompany. A business development company will often apply toUSCIS with the cooperation of a regional government.

Q: How does a business developer become a regional center?The business development company must submit a proposal toUSCIS, outlining investment opportunities that will contribute(DELETED: “in a substantial way”) to the regional economy, andwill also meet all the necessary requirements of the EB-5 program. Ifthe application is approved, the business developer can form a limitedpartnership or corporation, and can begin attracting foreign investors.

Q:What is the biggest difference between the original and PilotPrograms?For one, the Pilot Programmade each of the major requirements fareasier to satisfy. But as I often say to my clients, the greatestdifference isn’t in the requirements themselves, but in who isresponsible for making sure that the investment meets them. In theoriginal program, the investor was solely responsible for starting abusiness and proving to the U.S. immigration agency that thenecessary requirements had been satisfied. And, if you understandthe conditions that the investor had to meet under the originalprogram, you have an idea of just how difficult this was. The PilotProgram represents a radical departure from the original EB-5 visabecause it doesn’t force the investor to shoulder this considerableburden.

Q: Then who is responsible for satisfying the requirements?The regional center! When applying to USCIS for regional centerstatus, the city or private company must demonstrate that the


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investment projects that it has in mind will meet all the necessarycriteria. Once an area or business developer has become a regionalcenter, the investor can assume that all the major requirements havebeen met. In other words, the business enterprise that you mightinvest in has already been approved.

Q:What are the main requirements to qualify for an EB-5 visaunder the Pilot Program?As Imentioned, all of the major requirements of the original programwere either made far easier to meet, or simply done away with.

Q:What about the “new commercial enterprise” requirement?Gone! It is no longer necessary for an investor to start a newbusiness venture from the ground up. It is sufficient to simplyinvest the necessary capital in an existing commercial enterprise,as long as it was created after November 29, 1990.

Q: And the job creation requirement?This one—while still technically part of the Pilot Program—hasbeen changed dramatically. Under the original visa program, thenew business itself must have created 10 new jobs. This is nolonger the case. It is sufficient that the investment to indirectlycreate 10 jobs.

Q: How is indirect job creation measured?Industry job multiplier statistics. It is enough to show that theinvestment—which is of a certain size, in a certain area, in a certainindustry—would lead to increased productivity and sufficientlycontribute to the regional economy such that 10 jobs would likelybe created. This means that the commercial enterprise need notdirectly create a single job. However, that is not to say that theinvestment does not contribute to the regional economy. It justmeans that the way this contribution is measured has been made farmore reasonable.


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Q: Is the active management requirement also part of the PilotProgram?Technically, yes—the Pilot Program does require someparticipation in policymaking or management. Officially, the PilotProgram does not permit purely “passive investment.” But simplybeing a limited partner—which is the favored arrangement amongregional centers—is enough to meet this requirement. The realityis that you don’t need to show that you play an active role in theday-to-day management of the business. The Pilot Programtherefore allows you to simply be an investor, without having to bea business manager simultaneously.

Q: Is one required to live where the regional center is located?Absolutely not. The Pilot Program allows investors and theirfamilies to live wherever they choose, no matter where the regionalcenter is located.

Q: The “at risk” condition greatly increased the risk ofapplying through the original program. Does the PilotProgram still require that the funds be “at risk” beforeconsidering an investor’s application?Technically, yes. The investor’s funds must still be put “at risk.”But the Pilot Program also permits an applicant to satisfy thisrequirement by putting his or her funds “in escrow.” Escrow is alegal arrangement whereby a person’s assets can be held insafekeeping by a trusted third party—typically a bank—until theterms of an contract are satisfied, at which point the third party willtransfer the assets to whomever the contract specifies. However, Iam aware of only one regional center that actually offers thisarrangement: the New Orleans Regional Center—which we willdiscuss in Part II of this book. But because of the security andpeace of mind that escrow gives the investor, it is possible thatother regional centers will follow suit.


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Q: Are there any other advantages to the Pilot Program?On top of more reasonable requirements, and an applicationprocess that shifts the burden from the investor to the businessdeveloper, the U.S. government has also instructed USCIS to “givepriority” to EB-5 applications that are made through the PilotProgram. Today, an investor might still elect to pursue a visathrough the original program. Instructing USCIS to prioritizeregional center applications was meant to further encourageinvestors to apply through the Pilot Program.

Q: How do American politicians feel about the EB-5 PilotProgram?Immigration policy is a contentious issue in American politics.Every program and every proposed reform is met with strongopposition from some political faction or interest group. And thetruth is that a great deal of U.S. immigration policy doesn’t makea whole lot of sense—for anyone.While the original EB-5 programhad its critics, and rightly so, the Pilot Program is a notableexception on both counts. It’s extremely popular—at the moment,support is virtually unanimous in the Senate—and it benefits bothAmerican citizens and foreign investors. The EB-5 program createsjobs and revitalizes the economy in areas of greatest need, and itallows investors and their families to enjoy all the benefits ofpermanent U.S. residency.


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A SIDE-BY-SIDE COMPARISON OF THEORIGINAL AND PILOT PROGRAMS

In the last two chapters, we covered the basic requirements of theoriginal and Pilot Programs, and we saw that the Pilot Programrepresents a much more secure and flexible path for the potentialinvestor. To dispel any further doubt that the Pilot Program has anumber of significant advantages over its predecessor, let’s takeone more look at the requirements of the two programs, but thistime side-by-side.


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Original Program Pilot Program

Investment Amount $1,000,000 standard investment.

$500,000 standard investment.

Who has to provide the proof of investment’s viability

You, the investor. The business developer.

Investment Location Requires an investment in a rural or targeted employment area for the minimum investment to be reduced to $500,000. A targeted employment area must have at least 50% more unemployment than the national average.

Requires an investment in a

“designated regional center,” which USCIS has approved as

part of the Pilot Program. Aregional center is any

economic unit, public or private, which focuses on a

certain geographical area and “seeks to promote economic

growth though increasedexport sales, improved

regional productivity, creation of new jobs, and increased

domestic capital investment.”

“Establishment” requirement

Requires that the applicant start an entirely new business. The investor must also have been present at the “inception” of the new commercial enterprise.

Requires only that the

applicant show that an investment was made in a

commercial enterprise, whether new or preexisting, as

long as it was created after November 29, 1990.

In Part II of this book, we will tour the New Orleans RegionalCenter––one of the most active in the United States––The NewOrleans Regional Center offers investors the chance to do whatfew ever can: to help build a city from the ground up.


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Job Creation requirement

Requires the new business to create and fill 10 full-time jobs.

Requires only indirect job creation, established by

industry statistics.

“Involvement in Management” requirement

Requires the investor to play an active role in the management of the business enterprise.

Does not require active involvement in business

management.

PART IITHE NEW ORLEANSREGIONAL CENTER

HURRICANE KATRINA AND THE REBIRTHOF NEW ORLEANS

On August 29, 2005, Hurricane Katrina slammed ferociously intothe Gulf Coast of the United States. The storm, initially a relativelyweak tropical hurricane, had gained both speed and size as it passedover the warm waters of the Gulf of Mexico. By the time it reachedland in Louisiana, the speed of its winds exceeded 120 mph. Ananxious nation watched and waited as the storm ravagedeverything in its path.

When New Orleans’ levees broke, Hurricane Katrina went from acostly storm to—in the words of one government report—“one ofthe most devastating natural disasters in U.S. history.” Over eightypercent of the city’s area was submerged. The storm took nearlytwo thousand lives, and left virtually nothing for the roughly onemillion evacuees to come home to.

New Orleans suffered a second blow about a month later when asecond hurricane of nearly the same size and strength, HurricaneRita, caused further levee failure and reflooded much of the city.

Americans were haunted by images of the suffering and despair ofthose who stayed behind: people stranded on rooftops, familiestrudging through chest deep water, children crying for lack offood—all waiting for help, which came far too slowly.

Hurricane Katrina was the third most deadly natural disaster inAmerica’s history, having taken the lives of over 1,800 people. Butno other disaster could come close to approaching its economicimpact. The cost of anything of the magnitude of Hurricane Katrinais difficult to measure, but the numbers—however inexact—are


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staggering. The storm is estimated to have damaged 75 billiondollars worth of property and infrastructure. But the total economicdamage—including the interruption of oil production, reducedexports, damage to the forestry industry, and thousands of lostjobs—has been estimated at over $150 billion.7

Of course, these figures, incredible though they are, cannotadequately capture the true effects of the storm. Hurricane Katrinairreversibly altered the lives of hundreds of thousands of people,who woke up one day to realize that their possessions, homes,neighborhoods, communities, jobs, and the city they loved—nearlyeverything that made their lives what they were—had all butdisappeared. On a national level, New Orleans had been one of thecountry’s most beloved cities, one of its foremost culturalcenters—famous for its food and music—and an important part ofAmerica’s national identity. The loss was deeply felt.

Surveying the damage, which appeared nearly total, America as anation contemplated the task of rebuilding New Orleans, manywondering whether it would be best to simply help its formerresidents rebuild their lives elsewhere, and let the city fade intomemory. Could the country really afford the cost of rebuilding anentire city? Many feared not.

But America, it turned out, was not ready to relegate New Orleansto the history books, nor to tell its residents that their home wasnot worth the effort. And so the monumental task of rebuildingbegan.

The city government of New Orleans knew that, to fully rebuild,every conceivable kind of assistance was needed—includingforeign investment. That’s why, in May of 2006, the newly foundedMayor’s Office of Economic Development began the process ofapplying to USCIS for regional center status. An important part of


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this process was finding a private company that—acting inpartnership with the city government—could perform all of theoperational and financial aspects of New Orleans’EB-5 investmentactivities: selecting projects, submitting them to USCIS forapproval, working with foreign investors, allocating their funds tothe various business ventures and helping to ensure that investors’EB-5 petitions were approved.At the end of a competitive biddingprocess, the city selected a company named NobleOutReach, andawarded it a 30-year exclusive contract.

As I am writing this, it has been nearly three years since HurricaneKatrina. I am happy to say that—thanks in part to NobleOutReachand the investments made through the EB-5 program—NewOrleans has miraculously regained much of its former life, and theregional economy is on the rise. One of the features that make therenewal of New Orleans so remarkable is that it represents asuccessful public-private partnership. The effort to rebuild the cityhas been an extraordinary undertaking, not only by the U.S.government, but also with help from corporations, entrepreneurs,business developers and investors—fromAmerica and abroad. Butthere is an immense amount of work still to be done, and NewOrleans is still very much a city in recovery. Further investment isprofoundly needed.


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NOBLEOUTREACH AND NEW ORLEANS—AUNIQUE COMPANY AND A UNIQUEREGIONAL CENTER

At the time of this writing, there are roughly 15 active regionalcenters across the country. Each of these regional centers offers thethree essential things that every EB-5 investor is looking for: apotentially profitable investment, a USCIS pre-approved businessventure—that meets all the necessary requirements—and a viablepath to a Green Card. However, I selected NobleOutReach for thisbook, not because of what it has in common with other regionalcenters, but because of what sets it apart. While it may be the casethat all regional centers are viable paths to EB-5 immigrationbenefits, in this chapter, we’ll see what puts NobleOutReach—andthe New Orleans Regional Center—in a class by itself.

A 21st Century CityNo other regional center offers the limitless possibilities ofrebuilding a city from the ground up.

One of the greatest draws of the New Orleans Regional Center isthe chance to participate in rebuilding a major city, yieldingvirtually endless possibilities for exciting new businesses and newindustries. That’s why, in the wake of Hurricane Katrina, NewOrleans has attracted some of the most innovative entrepreneursand developers. A recent article in BusinessWeek called NewOrleans [a] “startup laboratory,” where “A small but growing corpsof young, ambitious, and passionate entrepreneurs are startingcompanies that could help the city’s economic future. They arebusiness owners who look beyond New Orleans’ traditionaltourism, oil, and shipping industries to find fertile ground for theirideas.”8 The Los Angeles Times has said, “…New Orleans was notdefined by its spirit of innovation in the decades preceding


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Hurricane Katrina. But the flood that changed everything two yearsago has changed that too: Today, by accident and by necessity, thiscity is awash in ideas…”9 New Orleans is a greenfield, a virtuallyblank canvas. For investors, such an opportunity is rare andvaluable, but to also receive a U.S. Permanent Resident Green Cardin the process is more than just rare—it is a truly singularopportunity: the New Orleans Regional Center is the only place inthe world where this is possible.

The EB-5 investor is obviously not alone in contributing moneyto the reconstruction effort. The U.S. government has pumpedbillions of dollars into New Orleans, modernizing the city’sinfrastructure and ensuring that all new building is done to thehighest possible standards. With its innovative entrepreneurialism,modern infrastructure and massive influx of investment, NewOrleans—though it has a long and rich history—can be consideredAmerica’s first 21st century city.

ARising EconomyNo other regional center offers an opportunity to invest in arecovering economy, and to take advantage of real estate atrock-bottom prices.

Contributing to the city’s renewal is an unparalleled opportunityfor financially successful investment. The trajectory of the city’swealth and prosperity descended to the lowest possible point whenthe floodwaters breached the levees. Today, the investor is poisedto take advantage of real estate at low market prices, regulatorypolicies that encourage business development, and a swiftlyrebounding economy. Consider that already by March of 2007:

• 80% of the businesses shut down by the hurricane hadreopened.


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• Roughly 1,250 restaurants—of the 1,800 that operated priorto Katrina—had reopened.• Sales tax collections had returned to 78% of what they wereprior to Katrina• Between 230,000 and 240,000 of the city’s former residentshad returned.• The city had granted nearly 360 new business licenses.10

If the recent and remarkable progress of New Orleans is anyindication, the city will become more prosperous than anyone hadimagined. New Orleans will not only return to its former strength,but—because of the unprecedented investment from the public andprivate sectors—far surpass the assumed limits of the city’seconomic potential. The road to recovery has been, and continuesto be, a long uphill climb. For investors who wish to benefit from theupwardmomentum of NewOrleans’economy, now is a critical time.

AWorthy CauseNo other regional center offers a chance to help victims of anatural disaster, and to help rebuild one of America’s mosttreasured cities.

The cost of Hurricane Katrina on the lives of New Orleans’residents is inestimable. Investing in the New Orleans RegionalCenter means making a meaningful and much-needed contributionto victims of the hurricane and, more broadly, to the United States.But assisting in the reconstruction effort is more than a contributiona to good cause. NobleOutReach presents the investor with achance to help a city in need, while simultaneously benefiting fromthe rising values of a recovering economy. New Orleans lies at theintersection of humanitarianism and for-profit ventures, whereopportunities for financially successful investment coincide withefforts to help people rebuild their city, and their lives.


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NobleFundsNo other regional center is based on the model of a venturefund, made up of multiple projects—a model that diversifiesthe investment, lowers risk, multiplies job creation, andheightens profits.

NobleOutReach is founded on a unique model of EB-5 investment.At the heart of this model is a venture fund that includes multipleprojects. Investors in NobleOutReach pool their capital into afund—called a “NobleFund”—and this fund’s assets are allocatedamong many different projects. In other words, each investor’smoney is invested across a portfolio of different business ventures.This is not the case with other regional centers, which invest theirclients’ assets into a single project.

NobleOutReach’s model has a number of distinct advantages. Forone, its NobleFunds allow the investors to pool risk and diversifytheir investment. The model of one investor/one project—used byall other regional centers—is potentially profitable, of course, butalso presents significant risk. If the project does well, the investorreceives a dividend, but if not, there are no other investments tocompensate for the loss. NobleOutReach’s unique model ofdistributing the funds among several projects allows diversifiedinvestment, and therefore diminished risk.

A second advantage is that it allows NobleOutReach to invest inhighly profitable business ventures, which other regional centerscannot.Another regional center—because it only invests in a singleproject at a time—is restricted to commercial enterprises thatsatisfy the job creation requirement of the EB-5 program. Thesecommercial enterprises, while they may have high job creation,may not be highly profitable. Because NobleOutReach invests inmultiple projects at once, they can strike a balance betweenbusiness ventures with high job-creation potential—satisfying the


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EB-5 requirement—and other projects that generate significantprofit. They can afford to include highly profitable ventures, eventhough they might not also have high job creation.

Yet another benefit of NobleOutReach’s model is that new projectscan continually be added to its funds, which means that the fundsnever close. No investor will ever be told that his EB-5 capitalinvestment cannot be accepted because the project has beencompleted, and permits no additional investment. Investors in otherregional centers have encountered just this predicament. Becauseof the way its funds are structured, NobleOutReach will never turnaway an investor.

The Security of EscrowNo other regional center offers the security of escrow—thesecurity of knowing that your money will not be invested untilyour Green Card petition has been fully approved.

At the moment, NobleOutReach is also the only regional centerthat offers their investors the security of holding their money inescrow until their applications are approved. Recall from ourdiscussion of the Pilot Program that escrow is a legal arrangementin which you sign a contract with another party (the “escrowagent”) specifying that your money will be held in safekeeping bya bank until the terms of the contract have been satisfied. Forinvestors of NobleOutReach, the contract states that theirinvestment will be transferred into one of its NobleFunds—andfully invested—only after the investor’s petition has been approvedby USCIS. If it is denied, the money simply goes back to theinvestor.


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This arrangement is an excellent safeguard, and one that allowsinvestors to fully benefit from the flexibility and security of thePilot Program. Escrow effectively protects the investor from thepossibility that funds could be committed without the approval ofthe Green Card. Investing in a regional center is a significantfinancial commitment, and it’s important that investors can makethis commitment being certain that they are guaranteed the benefitsof the EB-5 program. NobleOutReach is alone among regionalcenters in offering this certainty, and this peace of mind.

An Impressive Track RecordNo other regional center boasts the job creation potential andtrack record of NobleOutReach

Since it began working with foreign investors, NobleOutReach hashad a perfect track record. Of all the foreign investors who haveapplied for an EB-5 visa through NobleOutReach, at this writing,not a single one has been denied by USCIS. NobleOutReach’s100% success rate has certainly generated confidence amongprospective investors, and is a testament to the company’s abilityto go above and beyond what USCIS requires. In addition,NobleOutReach has far exceeded the requirement of creating 10jobs for each investor. NobleOutReach’s USCIS approved projectsexpect to produce five times the number of jobs required by theEB-5 program.

APortfolioNo other regional center offers a portfolio of exciting projectsfrom multiple industries, with the potential for significantreturn and job creation.

The projects that comprise NobleOutReach’s portfolio ofinvestments not only meet the necessary requirements of the EB-5 visa, but also promise to bring significant revenue back to the


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fund—and back to the investors. Here are some ofNobleOutReach’s projects, which USCIS has pre-approved forEB-5 investors:

• 6 Extended-Stay Hotels (120+ jobs)• 8 Neighborhood Emergency Medical Clinics (150+ jobs)• 2 Full Service Restaurants (500+ jobs each)• Movie Production Studio (3,700 jobs)• Construction Equipment Sales & Rental (100+ jobs)• Bank,Micro Lending, andCommunityDevelopment (400+ jobs)• Newspaper andMagazine Printing, Sales, Distribution (40+ jobs)

NobleOutReach assembled its portfolio with several goals in mind.They selected these projects, for one, because of their potential tocreate an abundance of jobs. As I mentioned, the projected jobcreation of its NobleFunds are vastly beyond what the EB-5program requires for each investor. NobleOutReach also worked tocreate a roster of new business that cut across multiple industries,further diversifying the investment. They were also chosen, inconsultation with the city of New Orleans, because they will makeimportant contributions to the recovery effort. But, above all, theywere chosen because they have minimal risk, and because theyrepresent sound financial investments with the potential to generatesignificant revenue and returns.

The Leadership of NobleOutReachNo other regional center is run by people with the experienceand expertise of William Hungerford and Timothy Milbrath.

The leaders and founders of NobleOutReach, William B.Hungerford Jr. and Colonel Timothy O. Milbrath, are twoextraordinary people. Their diverse but complementaryprofessional experience, and their strong commitment, both to theirinvestors and to the city of New Orleans, have inspired confidenceamong their investors. The city of New Orleans and a great many


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foreign investors have benefited enormously from their hard workand expertise. In the next chapter, we will learn more about thewealth of experience that these two men bring to NobleOutReach.


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A PROFILE OF NOBLEOUTREACH’SMANAGEMENT TEAM

I’d like to give you a chance to learn more about the managementteam of NobleOutReach: William Hungerford and TimothyMilbrath.

William B. Hungerford, Jr. (“Bart”)President and Managing Director

In his role as President of NobleOutReach,Bart Hungerford is responsible for theoverall business, financial, and operationalaspects of the firm. His direct involvementhas resulted in the successful developmentand negotiation of the 30-year exclusivecontract with the City of New Orleans

(NOLA), and the US GovernmentApproval and Re-Designation ofthe NOLARegional Center. As Managing Director of the series ofNobleFunds, Bart chairs the Funds’ Fund Advisory Boards (FAB)and is responsible for the qualification, selection, and allocation ofequity investment across portfolio companies that are focused onthe many industries requiring massive re-building and re-invigoration within the City of New Orleans. He is responsible forfund formation, legal compliance and disclosure, and has been anactive manager since the company’s inception.

For over 20 years, Bart has started companies and seen thosecompanies continue to thrive. Additionally, he has served onseveral non-profit boards. He has had a broad range of keyinternational management and profit and loss (P&L)responsibilities. His cross-functional, business development, andkey management expertise are combined with general


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management, financial responsibility, operational effectiveness,program/project management, and ultimately, organizationalsuccess.

Prior to co-founding NobleOutReach and NobleFunds, Bart heldseveral key operations and senior management positions withAmerican Management Services (AMS), Biosynexus, Noblestar,and Compass Computer Services. Additionally, he manages a realestate portfolio and real estate management services company. Hebrings the ability to operate large programs in both the public andprivate sectors, using an entrepreneurial focus and “hands-on”attention to detail. His responsibilities have encompassed strategicsales, market planning and implementation, business development,product and program development, and training, recruitment, anddevelopment. He has traveled worldwide, and has been responsiblefor managing global offices.

Bart holds a Bachelor’s degree in Accounting, ComputerInformation Systems, and Business Management from theUniversity of Tampa, where he graduated Magna Cum Laude. Healso holds a Master’s degree in Business Administration from theSimon School at the University of Rochester with concentrationsin Finance, Accounting, and Computer Information Systems.

Timothy O. Milbrath, Colonel USAF,RetiredExecutive Vice President

Colonel Timothy O. Milbrath, UnitedStates Air Force (Retired), is a decoratedcareer military officer and a successfulbusinessman. His career militaryexperience includes directly serving threeconsecutive United States Presidents as


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Chief of Staff of theWhite House Military Office, during which hewas given Top Secret Presidential clearance.

His worldwide diplomatic and business acumen reaches to thehighest levels of heads of state, royal families, and top corporateleaders. Tim is a highly accomplished Senior BusinessDevelopment professional with over twenty years of successwithin the public and private sectors. He is an adept negotiator withan impressive record of developing new profitable businesspartnerships, and has extensive international business experience.His specific expertise within NobleOutReach lies in clientdevelopment, general management, budgeting, and strategicplanning.


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INTERVIEW WITH TIMOTHY MILBRATH

I recently had the privilege of sitting down with Tim Milbrath—Executive Vice President of NobleOutReach, whom you met in theprevious chapter—andwe talked about the EB-5 visa and thework ofNobleOutReach. I wanted to share our conversationwith you because,as a prospective investor, I’m sure that you have a number ofquestions. I know I would. Investing $500,000 is large commitment,and nomatter how secure the investment, there is always a significantrisk. So, during our conversation, I asked Tim all the questions that Ithought you, the prospective investor, might have.

Vaughan: Tim, thanks so much for taking the time to speakwith me today. I know how busy you must be.

Tim:My pleasure, Vaughan.

Vaughan: I have several questions that I wanted to ask youabout NobleOutReach and applying for an EB-5 visa. But firstlet’s start with a little about you and your background, whichI think is fascinating. How did you first get involved in the EB-5 program?

Tim: Well, I retired from the Air Force in 1999, and at that time Iwas one of the senior advisors to the President of the United States.I was Chief of Staff of theWhite House Military Office, and I heldthat position during the Clinton administration. In 1999, I wasapproached by the U.S. government and asked if I was interestedin working to establish a regional center. I didn’t really have anyinterest at the time because of the past problems with the EB-5program, which you’re familiar with. But I was assured that thoseproblems were going to be corrected. Based on this assurance, Ireconsidered in 2002. My colleague, Bart Hungerford, and I


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decided to go ahead, and we began by focusing on the Gulf ofMexico. After Hurricane Katrina hit in 2005, we decided to focusdirectly on the recovery of New Orleans, as it presented a greatopportunity to help the region economically, and at the same timeoffered our investors a potentially significant financial return.

Vaughan: Am I correct that you and Mr. Hungerford wereaffiliated before the existence of NobleOutReach?

Tim: Yes, we were already business partners.

Vaughan: Can you briefly outline the process you went throughto obtain the United States government approval ofNobleOutReach as a Regional Center?

Tim: When a company like NobleOutReach applies for regionalcenter status, the Department of Homeland Security, whichincludes USCIS, is looking for a couple of things. First, they’relooking for a geographical area that needs investment, an area thatdoesn’t otherwise have the ability to attract income. They’relooking for an area that’s experiencing economic hardship, andcould therefore benefit from foreign investment. They’re alsolooking for investment projects that are economically viable andhave sufficient job-creation potential. When we submitted ourapplication, we provided a number of specific project proposals,each of which was thoroughly vetted. Homeland Security is alsolooking to make sure that the people who are going to run theregional center are qualified and trustworthy. They did extensivebackground checks of both Bart Hungerford and myself.

Vaughan: How long does this process usually take?

Tim: It can take anywhere from a year and a half, on the low end,to five years, on the high end. We were fortunate to have been


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approved so quickly. We filed for regional center status withUSCIS in the fall of 2006, and it was granted in the spring of 2007.

Vaughan: Was there open competition for NobleOutReach toobtain regional center status?

Tim: Yes, there was a competitive process. NobleOutReach wasone of twenty some companies that competed for a 30-yearexclusive contract with the city of New Orleans to handle allaspects of EB-5 investment. The contract went up for bid inAugustof 2006 and, a few months later, we were selected to sign thecontract. Only after we received the city’s contract could weformally apply to make New Orleans a USCIS approved regionalcenter.

Vaughan: It is my understanding that NobleOutReach isfounded on a unique model not found in other regional centers.

Tim: We decided to use a unique venture fund concept, and we arecurrently the only regional center to have done so.We’re unique inthat respect. The U.S. government liked the idea of venture fundbecause it minimizes the risk to the investor and diversifies theinvestment. Our fund is essentially like any other private equityventure fund.We must fully comply with U.S. securities laws, andbecause it’s a private offering, the individual investor must havecertain qualifications. In this case, the investor must have at leasta million dollars in total assets, which includes the $500,000 thatwill be invested with NobleOutReach.

Vaughan: When an investor’s money is put into the venturefund, is the individual investor’s money allocated to a specificproject, or does the money remain part of the fund in general?


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Tim: Good question. One of the advantages of using the fund modelis that the fund as a whole is allocated to multiple projects. Whenwe invest in a new project, it’s not with this specific person’s assetsor that specific person’s assets. It’s the fund’s collective assets,which our investors contribute to. So each of our clients is reallyinvesting in multiple projects. This allows our clients to diversifytheir investment in a way that other regional centers, becausethey’re structured differently, don’t allow.

Vaughan: Diversification is important in that it allows the riskto be spread among many projects rather than a single project.

Tim: Exactly. One project may turn out to be financially rewarding,or it may not. It’s a risk. If the investment loses value, there’snothing to offset the loss. Because our fund is made up of multipleprojects, this diversifies the investment and decreases the risk.Investing in multiple projects has other advantages as well. Forone, it allows us to invest in those things that provide good job-creation potential, to satisfy the EB-5 requirement, and at the sametime invest in other projects that have a high rate of return oncapital. One project may have strong job-creation potential, but itmay not be a sound investment in terms of generating profits. Orit may be profitable, but it wouldn’t create enough jobs. Having afund comprised of multiple projects allows you to create a balance,simultaneously maximizing jobs and financial returns.

Vaughan: Does NobleOutReach have more than one fund?

Tim: Yes it does. Right now, we’re in the process of creating ourthird fund.According to the law, only 99 investors can be in a fund.After the 99th member, the fund then replicates itself. So we neverclose. That’s a tremendous advantage to the EB-5 investor. Wenever close. Other regional centers work on a specific project, ahotel for example, which may require 80 investors. As an attorney,


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if your client is number 81, even if your client is in the advancedstages of the application process, the regional center won’t accepttheir investment because the project is closed. But we never close.

Vaughan: What is the difference between the NobleOutReachfunds?

Tim: There is no difference. They just replicate themselves, in orderto satisfy the requirement of having no more than 99 investors ineach fund. There is no difference between fund one, fund two andfund three.

Vaughan: So the different funds comprise the same actualprojects.

Tim: Yes. The funds are exactly the same. The number of the fundis merely a formality because the money is invested into the sameprojects.

Vaughan: NobleOutReach also allows their investors money tobe put in escrow until their application is approved, is thatcorrect?

Tim: That’s correct. Escrow is a safeguard. It’s a holding facility,if you will, that holds the investor’s money safely until the petitionis approved. Once the petition is approved, the funds in escrow areinvested with NobleOutReach. The money is then invested in thevarious projects. On the other hand, if the EB-5 petition is denied,the money is returned to the petitioner. NobleOutReach does nottouch a penny of it until the application has been fully approved.

Vaughan: Do other regional centers do it that same way?

Tim: No. We’re the only one to do it that way.


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Vaughan: I wanted to ask you about the projects thatNobleOutReach invests in. Is there a certain set of criteria thatNobleOutReach uses in selecting projects?

Tim: Each project has to be approved by the U.S. government assatisfying the requirements for EB-5 investment. We have a FundAdvisory Board that looks at the potential projects that we mightinvest in. We are sent a business plan, and it goes through ourvetting process. We also work with the city very closely and lookat their recommendations on what they think the city needs.Besides profitability, we also make sure that we invest in projectsthat will create the necessary number of jobs for EB-5 investment.If a particular project sounds good, if it’s going to be a profitableinvestment for us to make, and if it creates jobs and has relativelylow risk, then we make the decision to send it to the U.S.government for approval. If they approve it, then it becomes oneof the fund’s projects.

Vaughan: Isn’t it the case that NobleOutReach has surpassedthe 10 job requirement per investor?

Tim: We have no problem meeting the job creation requirementbecause we are investing in projects that have incredible jobgrowth. When we initially applied for regional center status,USCIS approved 31 of our projects. Based on the size of theinvestment and the number of projects, we needed to create 630jobs to satisfy the requirement of the EB-5 program. But these 31projects will actually create 3,608 jobs, which is five times what weneeded. Pretty amazing.We often invest in what’s called “troubledbusinesses,” which were disturbed or destroyed by the hurricane.And by investing some dollars into those businesses, to get themgoing again, the benefit of those saved jobs goes to both the peopleof New Orleans and to our investors who are applying for an EB-5 visa.


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Vaughan: I know NobleOutReach has only recently begun itsdevelopment activity in NewOrleans. Can you describe some ofthe projects that you have committed investment to at this point?

Tim: Sure.We’re already underway to build a number of extended-stay hotels in the New Orleans area. These hotels rent for a weekor more, and they’re equipped with kitchenettes.As an investment,these hotels have a number of important advantages. For one,they’re in high demand. New Orleans is known for its tourismindustry, and as a city where people come for conventions. Becauseof Katrina, New Orleans hasn’t been having as many of the largerconventions, but it has picked up an enormous amount of smallerconventions, and the city is really excited about that. And thepeople who come for these conventions are going to need places tostay. We’re also investing in extended-stay hotels because a newmulti-million dollar hospital is going to be built in the area, andthe patients’ families will need a place to stay for a week, twoweeks, even a month, when they come to visit. The same is true fordoctors and specialists that come to the area. Another importantadvantage is that these hotels are extremely profitable. Around theUnited States, these types of hotels are anywhere from 89% toabout 97% occupied. That’s incredible for a hotel chain. Most hotelchains would be extremely happy with 70%. When BartHungerford and I were first introduced to this hotel chain a fewyears ago, the investors committed about 200 million dollars tobuild a very large number of hotels, about 6 or 7 hotels. After fouryears, they sold them for over 2 billion dollars. That’s a prettyincredible return on investment. So these hotels produce a lot ofrevenue, which would go back to the fund, and then back to theinvestor. Another advantage is that they produce a lot of jobs,which also benefits the investor. These hotels are open 24 hours aday, 7 days a week. When facilities don’t close down, you needthree shifts of workers, which means that they will create threetimes the number of jobs.


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Vaughan: Is NobleOutReach going to operate these hotels orlease them back to operators?

Tim: NobleOutReach will own the land and the building, and we’llhire a management company with the expertise to maximize thepotential return for the fund’s investors.

Vaughan: I think that’s an important point. The investmentprojects aren’t amorphous things. We’re talking about realestate and a building on top of it. That says a lot about thesecurity of the investment. And I think investors understandthat.

Tim: Absolutely.

Vaughan: Can you give me another example?

Tim: We’re also committed to building what I call neighborhoodmedical clinics. Hurricane Katrina dealt a heavy blow to NewOrleans’ heath care system. Mercy Hospital, formerly the largesthospital in the area, may never reopen. Although they’re buildinga new hospital, as I mentioned, it still won’t open for a number ofyears. So, the mayor of New Orleans decided to focus on creatinga number of smaller, neighborhood medical facilities. A bigproblem in this area is basic care preventive medicine—vaccinations, for example. Rather than go and burden one of thelarge hospitals, which are already over-burdened, people can getbasic medical treatment in one of these neighborhood facilities.Many of the people coming back to New Orleans are youngprofessionals who have insurance, and these facilities will meettheir needs perfectly.

Vaughan: What will be NobleOutReach’s role in building andmanaging these facilities?


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Tim: We’ll build the buildings and lease them out to doctors,clinics, pharmacies, labs, etc. So we have a guaranteed tenant.

Vaughan: This seems like a good example of the kind of projectthat fulfills an important public need in New Orleans, while atthe same time it’s something that has the potential to generatesignificant revenue.

Tim: Exactly, and we get the credit for the jobs created. A doctorwill come in and have to hire new people to help run his practice,and we get credit for those jobs. And also, Bart Hungerford and Iare always looking to the future, and the future of New Orleans.And if you’re going to keep at-risk youth out of trouble, you needto give them something productive to do. And these are excellentfacilities where young people in the neighborhood can come in andget a job—as an orderly, for example—and learn skills that canlead to a career. In addition to extended stay hotels andneighborhood medical facilities, we’re also looking at investing inbanks, because it’s currently a growth market for banks in NewOrleans. Also, we’re looking at newspaper and magazine printing.It’s really exciting when we look at these kinds of proposals andsee how creative people can be in bringing new industries to NewOrleans.

Vaughan: Are all your projects insured?

Tim: Absolutely. Even in areas that didn’t get a drop of waterduring the hurricane. Our investors’ security is our highest concern.All NobleOutReach projects are fully insured against damage thatcould be caused by a future hurricane or levy failure.

Vaughan: In your opinion, what is it about the New Orleansthat investors find so compelling? I certainly understand thepull of New Orleans from the standpoint of a need for


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investment and economic growth in that community, but thepeople that are going to be reading this book are going to beinvestors from another country. So, my question is, what wouldyou like them to know about New Orleans from a purelyinvestment perspective, as well as from a humanitarianperspective?

Tim: I was just having lunch with some friends who were headedto Beijing, and we were discussing the terrible earthquake that justhappened in China. In general, I think people understand tragedy.We all have trouble understanding war and terrorism. It’s hard tounderstand why people would want to hurt other people. But weunderstand earthquakes.We understand floods.We understand thatthey happen through no fault of anybody. Hurricane Katrina andthe devastation of the Gulf region was nobody’s fault. It justhappened. I think investors know that God, or Nature, works invery mysterious ways. In our country, Katrina was the worstnatural disaster we’ve ever had, in the entire history of the UnitedStates. I think the earthquake may be the largest natural disasterthat they’ve ever had, at least in that part of China. Certainly, thecatastrophic death toll was the largest in recent history, to myknowledge. The people of New Orleans did not suffer the sameloss of life, but they definitely suffered the destruction. If you canbe part of the rebuilding effort and at the same time get the benefitof perhaps a little bit of profit to your investment, and also get animmigration benefit, then it’s a win-win for those who are able toparticipate in this program. The people of New Orleans love thecity and want to bring it back.And it’s coming back, and, I believe,at a rate that investors can profit in. We don’t invest in charities.Asmuch as we might like to, we’re not set up that way. We’re notdesigned to focus on charitable activities. By law, our projects mustbe for-profit enterprises.


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Vaughan: That’s an important distinction that I wanted tomake in our discussion because many of the investors that I’vespoken with are concerned with the return on their investment.I know you cannot make specific claims or guarantees, buthave you done any studies, or have there been any expertassessments as to the potential financial advantages ofinvesting in an area like New Orleans?

Tim: We think the investor will be pleased by the return on theirinvestment. As I mentioned, the extended stay hotels that we’reworking on are extremely profitable. But by law we can’tguarantee a certain return. We’re restricted by U.S. securities lawand we’re restricted by federal law. We’re essentially no differentfrom any other financial organization or mutual fund in that way.Under the guidelines of the EB-5 program, to guarantee a return,or say that the investor will get some sort of payment for theirinvestment, is in violation of the law.

Vaughan: Every time I speak with the client and they ask, “Canyou give me a guarantee?” I tell them that if you hear anattorney or an investment company give you a guarantee forthe investment, that’s when you should walk out the door.

Tim: Exactly. We want to assure people that we’re straightforwardand transparent. We’re honest, and we’re open to listening to whattheir questions are and answering those questions. But we don’tguarantee anything because to do so would be to break the law,and that’s not who we are.We don’t make any guarantees, but whatwe do offer is a promise of wonderful service to the client. Havingsaid that, we certainly believe that the venture fund, or mutual fundmodel, will provide both a diversified risk and a significant return.


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Vaughan: And that is fully your intention in making theinvestments, to return a profit?

Tim: Absolutely, because the more profit that is made, the moreour investors benefit, and that’s really our goal. Of course, weinvest in projects that help the people of New Orleans, but as anorganization, our primary goal is to benefit our investors bygenerating revenue and satisfying the requirements of the EB-5program.

Vaughan: Can you describe the EB-5 application process, fromyour standpoint?

Tim: First, an investor hears about EB-5, and then they call you, theattorney. Or they call us, and we call you to have you speak withthem. If the client is interested in pursuing a visa by investing inNobleOutReach, then you contact us on the client’s behalf. At thispoint, we have them fill out a qualification questionnaire. Thequestionnaire allows us to determine if they’re qualified for theEB-5 visa program, and if they have the appropriate qualificationsto be an investor. It also helps you, the attorney, to determine if theperson is a viable candidate for the EB-5 visa. After we’veevaluated the questionnaire, we’ll send a non-disclosureagreement. Once the person has signed the non-disclosureagreement, and has signed a retainer agreement to retain you astheir attorney, we send the client our financial offering documents,which provide complete information about NobleOutReach, itsfunds and its projects. This way, the client can make an informed,financially sound decision about whether to invest in our fund.Wefeel that it is crucial that the investor have as much information aspossible before making a decision. Once they decide to invest inour fund, they can begin the investment and petition process.Whentheir application is approved by USCIS, the escrow is released ontheir accounts and the money is transferred to us, which we invest


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in our projects. And at this point, the investor is a limited partnerin NobleOutReach. We make our investors limited partnersbecause the U.S. government has decided that it gives themsufficient involvement in the company.

Vaughan: That brings up another question. What exactly arethe investor’s responsibilities as a limited partner?

Tim: None. Being a limited partner is just a type of investmentarrangement. Our investors are not required to take any role in themanagement of NobleOutReach, nor do they incur any liabilitybeyond their investment.

Vaughan: You mentioned that prospective investors sign a non-disclosure agreement before you send them your financialoffering documents. What’s the purpose of the non-disclosureagreement?

Tim: The purpose of the non-disclosure agreement is to protect bothour privacy and the privacy of the investor. The agreement saysthat the client will not release any information about our offering,except to their financial advisor, their attorney, and members oftheir family. The investor learns a lot about us in reviewing ourfinancial prospectus, and during the investment and applicationprocess. But we also learn a lot about the investor, and the non-disclosure agreement is meant to protect their privacy as well. Partof the EB-5 application process is an extensive background check,performed by the U.S. government. And we also do our ownbackground check, in the form of the qualification questionnaire.So we learn a lot about the investor as well—their financialsituation, their family, a lot about what makes them who they are.The non-disclosure agreement ensures that we will never releasethe investor’s personal information to anyone, under anycircumstances. It’s completely confidential. Depending on what


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country the investor is from, the fact that they’re applying for aU.S. visa can be very sensitive information. Some governmentswould even retaliate, violently in some cases, if they knew theperson was attempting to immigrate to the United States. So thenon-disclosure agreement is meant to protect our clients just asmuch as it’s meant to protect us.

Vaughan: In other words, it’s a mutual non-disclosureagreement.

Tim: Exactly. We get asked this question a lot: “Can I talk to oneof your investors?” And this is a perfectly reasonable question.Before doing something—in this case, investing inNobleOutReach—we often want to talk to someone who’s alreadydone it. However, we can’t release this information. We won’t saythat so-and-so is one of our investors, because we protect theirprivacy.

Vaughan: Does signing the non-disclosure agreement obligatethe client to invest in NobleOutReach?

Tim: Absolutely not. By signing to the agreement, you’re notmaking any kind of commitment to invest. You’re simply agreeingnot to divulge the information we provide in our prospectus, or anyprivate information about NobleOutReach, to anyone but yourattorney, financial advisor or family.

Vaughan: Let’s say that an applicant goes through the initialevaluation process and they are able to retain an attorney. Howmany investors’ applications have been denied USCIS afterthey haved reached that point?

Tim: None. We have not had any denied. None of the investors wehave accepted, after passing a background check, have ever hadtheir visa application denied by USCIS.


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Vaughan: At the moment, about how many investors doesNobleOutReach have?

Tim: We are prevented by law from saying exactly how manyinvestors we have, because our fund is a private offering. But wecan certainly say that we do have investors and we’re in the processof creating our third fund, and there can be 99 investors per fund.So you can do the math and get a rough idea. But we have to bevery careful not to advertise how many people we have in the fundand what the rate of return will be. Those are regulations that wehave to comply with.

Vaughan: My understanding is that you already have severalinvestors from China. Is that correct?

Tim: Absolutely, and we also have several in the pipeline.

Vaughan: We know that NobleOutReach is specificallyapproved to attract EB-5 investors. Has it been approved forother categories of investors as well?

Tim: Yes. Our fund can take foreigners who would like the EB-5benefits as well as foreign investors who aren’t interested in theprogram.We can also take U.S. domestic investment. The way wehave been approved, and the way we’re structured, we can go allthe way to the top. We’re essentially unrestricted in the kinds ofinvestments we can take.

Vaughan: One question that might come up for a potentialinvestor is why they’re paying the $60,000 service fee. I’veexplained to people that a big part of that fee is that you’vespent immense resources getting approval by the United Statesgovernment.


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Tim: Yeah, that’s right. NobleOutReach cannot touch a penny of the$500,000 investment. That entire summust be invested in the fund.The $60,000 service fee is where we get the money to operate. Therule is that an investor’s capital has to stay in the fund for five yearsfor them to qualify for a Green Card. After the five years, theinvestor can request a return of the capital, or they can stay inindefinitely. Over such a long period of time, the fee is a smallpayment for our administrative costs. The service fee covers thelifetime of the investment, and it’s a one time fee, no matter howlong the money stays in the fund. Some regional centers have alower fee, and others’ are higher. NobleOutReach offers investorsa much better product: better projected job creation and betterprojected returns. Plus, I think if you look at the structure of regionalcenters that have a lower service fee, you’ll find that they get theirrevenue through other means. And many of the Regional Centerswho charge less at the beginning also charge a heavy fee once theinvestor takes their money out. Others require annual capital calls,which are additional fees that they charge every year, and there’s noway to know how much they’re going to ask for. The total fee endsup being far more than $60,000. We don’t do that.

Vaughan: Why, in your mind, have investors decided to investin NobleOutReach?

Tim: I think the bottom line is that all regional centers are similarin certain ways, but at the same time, we’re all different. We’vestructured ours as a truly diversified fund, and other regionalcenters have done it differently. But I think investors like the ideaof being able to diversify their investment. I think that the fact thatwe allow our investors’money to be held in escrow is another bigkey. They also like the idea that we’re the only regional center thatincludes a whole major U.S. city. They like the idea that the federalgovernment has pumped billions of dollars into the city’sinfrastructure, more than in any other city where there is a regional


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center. The city is being completely modernized. The fact that thegovernment has ripped up 100 year-old pipes and sewer systems isamazing. That could never have happened otherwise. Never. Itwould have taken a whole generation to update the city. Now allthe construction is being built up to the highest standards.Any newbuilding has to be built to what is called the Miami-Dade standard,which means that they have to be able to withstand hurricane windloads. That has never been done before. But in the end, it’s all aboutwho you trust. At the end of the day, I think an investor chooses usbecause he or she trusts us. I think my professional background, asa senior aide to the President, also helps instill trust. I had thehighest security clearance one can have. I’m not going to lie toanybody. My intent is to help them, and to help this program.Whenyou meet me and look me in the eyes, what I tell you on Mondayis the same thing that my partner Bart Hungerford is going to tellyou on Friday, and it’s the same thing you read in our documents.Wepride ourselves on that. We have a 30-year exclusive contract withNew Orleans to administer the EB-5 program. I’m 52 years old andmy father died at 82, so I may see this through to the end. But I thinkthat the people that wemeet generally like us, and we like them.Andwe want to be in their lives as much as they want to be in our lives.

Vaughan: Can you give me a success story from one of yourinvestors?

Tim: Sure.About a year ago, there was a gentleman fromAsia whowanted to immigrate to the United States and he had looked at allthe regional centers. We were in contact for a while, and in the endhe decided that he was going to choose a different immigrationpath. And I looked at him and I told him, “I think we’re going totalk again.” And he said, “I don’t think so.” I said, “Okay, but Ithink we will.” I felt that, for this person, EB-5 was the best avenuefor him to immigrate to the United States. Low and behold, a yearlater, to the month, he calls. He apologized profusely and he said


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that he has tried everything, and that he’d like to reignite theconversation and start the EB-5 process with NobleOutReach. AndI think he now sleeps much better. And I think the reason why isthat, in the other immigration categories, if you lose your job, thatdoesn’t guarantee that you can stay in the United States. And if thecompany that you work for goes under, you lose your status. Isn’tthat correct, Vaughan?As an immigration attorney, you knowmorethan I do.

Vaughan: That’s very true. Many of the other immigrationmethods are dependent upon factors that are really outside theimmigrant’s control and can be very capricious. Even if they’reopening their own subsidiary in the United States, they facethe risk of losing their immigration status if the subsidiarydoesn’t succeed, and there is no direct route to a Green Cardas there is with EB-5. I think if the person is prepared to makethat kind of investment, EB-5 is by far the most certain,dependable vehicle to permanent residency.

Tim: That’s it. Absolutely.

Vaughan: Tim, it’s been a pleasure talking to you. Thanksagain.

Tim: Thank you, Vaughan. I enjoyed talking with you, as always.


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INTERVIEW HIGHLIGHTS

NobleOutReach’s Unique Model

“We decided to use a unique venture fund concept, and we arecurrently the only regional center to have done so. We’re unique inthat respect.”

“One of the advantages of using the fund model is that the fund asa whole is allocated to multiple projects. When we invest in a newproject, it’s not with this specific person’s assets or that specificperson’s assets…. So each of our clients is really investing inmultiple projects.”

“Because our fund is made up of multiple projects, this diversifiesthe investment and decreases the risk. Investing in multiple projectshas other advantages as well. For one, it allows us to invest inthose things that provide good job-creation potential, to satisfy theEB-5 requirement, and at the same time invest in other projectsthat have a high rate of return on capital.”

Escrow

“Escrow is a safeguard. It’s a holding facility, if you will, that holdsthe investor’s money safely until the petition is approved…. On theother hand, if the EB-5 petition is denied, the money is returned tothe petitioner. NobleOutReach does not touch a penny of it untilthe application has been fully approved…. We’re the only one to doit that way.”

Projects

“Each project has to be approved by the U.S. government as


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satisfying the requirements for EB-5 investment. We have a FundAdvisory Board that looks at the potential projects that we mightinvest in…. If a particular project sounds good, if it’s going to bea profitable investment for us to make, and if it creates jobs and hasrelatively low risk, then we make the decision to send it to the U.S.government for approval.”

“We’re already underway to build a number of extended stay hotelsin the New Orleans area. As an investment, these hotels have anumber of important advantages. For one, they’re in highdemand…. Another important advantage is that these hotels areextremely profitable…. So these hotels produce a lot of revenue,which would go back to the fund, and then back to the investor.”

Security and Insurance

“Absolutely [all our projects are insured]. Even in areas that didn’tget a drop of water during the hurricane.”

Job Creation

“We have no problem meeting the job creation requirementbecause we are investing in projects that have incredible jobgrowth…. [T]hese 31 projects will actually create 3,608 jobs,which is five times what we needed. Pretty amazing.”

Hurricane Katrina

“In general, I think people understand tragedy…. HurricaneKatrina and the devastation of the Gulf region was nobody’s fault.It just happened…. In our country, Katrina was the worst naturaldisaster we’ve ever had, in the entire history of the United States….If you can be part of the rebuilding effort and at the same time getthe benefit of perhaps a little bit of profit to your investment, and


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also get an immigration benefit, then it’s a win-win for those whoare able to participate in this program.”

Return on Investment

“The people of New Orleans love the city and want to bring it back.And it’s coming back, and, I believe, at a rate that investors canprofit in.”

“We think the investor will be pleased by the return on theirinvestment. But by law we can’t guarantee a certain return.”

“[T]he more profit that is made, the more our investors benefit,and that’s really our goal. Of course, we invest in projects that helpthe people of New Orleans, but as an organization, our primarygoal is to benefit our investors by generating revenue andsatisfying the requirements of the EB-5 program.”

Responsibilities of Limited Partners

“Being a limited partner is just a type of investment arrangement.Our investors are not required to take any role in the managementof NobleOutReach, nor do they incur any liability beyond theirinvestment.”

The Non-disclosure agreement

“The purpose of the non-disclosure agreement is to protect bothour privacy and the privacy of the investor. The agreement saysthat the client will not release any information about our offering,[and also] ensures that we will never release the investor’spersonal information to anyone, under any circumstances. It’scompletely confidential….”


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“By signing to the agreement, you’re not making any kind ofcommitment to invest.”

Track Record

“We have not had any [investors] denied. None of the investors wehave accepted, after doing a background check, have ever hadtheir visa application denied by USCIS.”

Service Fee

“NobleOutReach cannot touch a penny of the $500,000investment. That entire sum must be invested in the fund. The$60,000 service fee is where we get the money to operate. The ruleis that an investor’s capital has to stay in the fund for five years forthem to qualify for a Green Card…. Over such a long period oftime, the fee is a small payment for our administrative costs. Theservice fee covers the lifetime of the investment, and it’s a one timefee, no matter how long the money stays in the fund. Some regionalcenters have a lower fee, and others’are higher…. And many of theRegional Centers who charge less at the beginning also charge aheavy fee once the investor takes their money out. Others requireannual capital calls, which are additional fees that they chargeevery year, and there’s no way to know how much they’re going toask for. The total fee ends up being far more than $60,000. We don’tdo that.”

Why Invest in New Orleans?

“…I think investors like the idea of being able to diversify theirinvestment. I think that the fact that we allow our investors’moneyto be held in escrow is another big key. They also like the idea thatwe’re the only regional center that includes a whole, major U.S.city. They like the idea that the federal government has pumped


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billions of dollars into the city’s infrastructure, more than in anyother city where there is a regional center…. But in the end, it’s allabout who you trust. At the end of the day, I think an investorchooses us because he or she trusts us. I think my professionalbackground, as a senior aid to the President, also helps instill trust.I had the highest security clearance one can have. I’m not goingto lie to anybody. My intent is to help them, and to help thisprogram.... I think that the people that we meet generally like us,and we like them. And we want to be in their lives as much as theywant to be in our lives.”


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OTHER REGIONAL CENTER PROGRAMS

Investing in the New Orleans Regional Center is a promising andexciting means to pursue a visa under the EB-5 program. However,there are a number of other regional centers within the UnitedStates, each of which has much to recommend them. In thischapter, we will briefly survey the other existing regional centerprograms that USCIS has designated as “active.” A great manyregional center applications have been approved since the PilotProgram first began, but few of them have done what is necessaryto generate interest or attract significant investment. As of May2008, the following is a complete list of active regional centers.11

AERO-SPACE PORT INTERNATIONALGROUP [ASPIGROUP]Approved by legacy INS:March 24, 1994Geographic Area:Within ASPI Group, located at Grant CountyInternational Airport in Moses LakeFocus of Export/Economic Growth Activity: High tech,agricultural and other export products to Europe and Pacific Rimcountries through international air cargo facilities.[Note: USCIS report that this is regional center is currentlypending re-affirmation as of October 19, 2007]

ALABAMACENTER FOR FOREIGN INVESTMENTREGIONALCENTERApproved: June 11, 2007Geographic Area: State of Alabama.Focus of Export/Economic Growth Activity: Heavy and lightmanufacturing; agriculture; high technology; construction;hospitality, resort and service industries (hotels, restaurants, resorts,golf courses, entertainment, and the like); schools, health carefacilities, and infrastructure; and cruise line support services.


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CALIFORNIACONSORTIUM FORAGRICULTURALEXPORTApproved:April 18, 2002Reaffirmed by USCIS:March 19, 2007Geographic Area: Nine Counties in Central California known asthe San Joaquin Valley.Focus of Export/Economic Growth Activity: An agriculturalinvestment program purchasing and converting fallow or row croplands into permanent commercially viable fruit and/or nut treesand grape vines for the domestic and export markets, wineries, andelevator platform machinery manufacturing.

CAPITALAREAREGIONALCENTERApproved: November 25, 2005Geographic Area: Legal boundaries of the District of Columbia(Washington, DC) and the contiguous adjacent areas ofMontgomery and Prince Georges Counties in Maryland,Arlingtonand Fairfax counties in Virginia, and the city of Alexandria, VA.Focus of Economic Growth Activity: Mixed hotel, retail, officeand residential space; a soccer stadium; conference center space,and industrial space.

CMB EXPORT LLCApproved:August 15, 1997Reaffirmed by USCIS:April 18, 2007Geographic Area: The development area is related to formermilitary bases located in the counties of Sacramento, SanBernardino and Riverside, CA.Focus of Export/Economic Growth Activity: Export activityrelated to development of military bases; air cargo, sea portdevelopment as export centers.


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THE GATEWAY FREEDOM FUND/AKA: GOLDENRAINBOW FREEDOM FUNDApproved: February 5, 1996Reaffirmed by USCIS:March 26, 2007Geographic Area: 1) As Golden Rainbow Freedom Fund, aircargo and manufacturing facility in Jackson County, Oregon; 2)As Gateway: City of Seattle Neighborhood Reinvestment Area inSeattle, WashingtonFocus of Export/Economic Growth Activity: Air and oceancargo facilities; and manufacturing; warehouses.

GLOBALCENTURYDEVELOPMENT GROUP I, LP(GLOBALCENTURY)Approved:April 18, 2007Geographic Area: The contiguous geographic area of Houston’sChinatown encompassing the Tax Increment Reinvestment Zone#15 (TIRZ), a 60-block area bounded by Preston Street on theNorth, Dowling Street on the East, St. Joseph parkway on theSouth, and Chartres Street on the West.Focus of Export/Economic Growth Activity: Concentrating onfinancing and developing commercial and mixed-use real estate inthe following five target industries: hotel and hospitality; retail;mixed use residential; commercial office; restaurant &entertainment.

IOWADEPARTMENT OF ECONOMIC DEVELOPMENT(IDED)Approved: December 2004Geographic Area: 77 Rural and Small Urban Counties in Iowa.Focus of Economic Growth Activity: Dairy farming


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KANSAS BIOFUELREGIONALCENTER, LLCApproved:April 17, 2007Geographic Area: Twenty-one (21) counties located in thesouthwest region of the State of Kansas.Focus of Economic Growth Activity: Building and operation offuel grade ethanol production facilities within the geographicbounds of the regional center.

NEW LOSANGELES FILM REGIONALCENTERGeographic Area: All projects will be located within the set ofcontiguous census tracts in Los Angeles County designated as atargeted employment area (TEA) by the California EmploymentDevelopment Department (EDD) acting as the designated stateagency by the Governor of the State of CaliforniaFocus of Export/Economic GrowthActivity: Investments in themotion picture and television industry in Los Angeles County,California.

METROPOLITAN MILWAUKEEASSOCIATION OFCOMMERCE (MMAC)Approved:May 1, 2007Geographic Area: The seven (7) counties of southeasternWisconsin: Kenosha, Milwaukee, Ozaukee, Racine, Walworth,Washington, and Waukesha (including Targeted EmploymentAreas within the cities of Racine and Milwaukee, Wisconsin.Focus of Export/Economic Growth Activity: Business andprofessional services; financial activities and business processservices; health services and medical technology; manufacturing;printing and printing support; wholesale trade and distribution; andhospitality and entertainment.


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PENNSYLVANIADEPARTMENT OF COMMUNITY&ECONOMIC DEVELOPMENT REGIONALCENTERApproved:April 13, 2007GeographicArea:The contiguous geographic area encompassing thefollowing 23 counties of western Pennsylvania: Erie, Crawford,Mercer, Venango, Lawrence, Butler, Clarion Beaver, Armstrong,Allegheny, Indiana, Westmoreland, Washington, Greene, Fayette,Somerset, Cambria, Blair, Bedford, Warren, Forest, Jefferson andClearfield.Also, within the above defined contiguous geographic area,the delineated Targeted Employment Areas (TEAs) within thePittsburgh, Pennsylvania Standard Metropolitan Statistical Area(SMSA); delineatedTEAswithin the city of Pittsburgh; and delineatedTEAs within the Erie and Johnstown, Pennsylvania SMSAs.Focus of Export/Economic Growth Activity: Concentrating onfinancing projects and developing commercial enterprises in thefollowing eight target industries: Tourism and hospitality;technology; transportation; manufacturing and trade; healthservices; agriculture and food production; higher education; andleasehold improvements to commercial office &mixed-use spaces.

PHILADELPHIA INDUSTRIALDEVELOPMENTCORPORATIONApproved: February 28, 2003Reaffirmed by USCIS:April 23, 2004Geographic Area: Philadelphia County, PAFocus of Economic Growth Activity: Tourism convention andvisitor services through the hotel, restaurant and hospitalityindustry; commercial office space renovation and leasing;merchandise import and export sales; investment in high-tech startup companies as well as information and bio-tech enterprises; andtrucking and warehousing and transportation enterprises.


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SOUTH DAKOTA INTERNATIONALBUSINESSINSTITUTE DAIRY ECONOMIC DEVELOPMENTREGIONApproved:April 8, 2004Reaffirmed by USCIS: July 18, 2005 and December 12, 2006GeographicArea: The 44 rural counties in eastern South Dakota.Focus of Export/Economic Growth Activity: Projects to datehave included agricultural-related development, in particularestablishing dairy farms and a beef processing plant.

NEW SOUTHEAST LOSANGELES REGIONALCENTER(SELARC)Geographic Area: City of VernonFocus of Economic Growth Activity: Food products, apparelmanufacturing, transportation and warehousing, householdfurniture and furnishings.

SOUTHWEST BIOFUELS REGIONAL CENTER, LLC(SWBRC)Approved: June 21, 2007Geographic Area: The contiguous geographic area encompassesthe 40 counties located in the northwest region of Texas, to includeDallam, Sherman, Hansford, Lipscomb, Ociltree, Hartley, Moore,Hutchinson, Roberts, Hemphill, Oldham, Potter, Carson, Gray,Wheeler, Deaf Smith, Randall, Armstrong, Donley, Collingsworth,Parmer, Castro, Swisher, Briscoe, Hall, Childress, Hardeman,Bailey, Lamb, Hale, Floyd, Motley, Cottle, Foard,Cochran, Hockley, Lubbock, Crosby, Dickens, and King counties,and 9 counties located in the western region of the State ofOklahoma, to include Cimarron, Texas, Beaver, Ellis, Roger Mills,Beckham, Greer, Harmon, and Jackson.Focus of Export/Economic Growth Activity: The developmentand operation of fuel grade ethanol production facilities.


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UNIBEX GLOBALCORPORATIONGeographic Area:Within UBC’s master-planned business centerin North Las Vegas, Nevada.Focus of Economic Growth Activity: International trade,distribution, tourism and export trade, including Southwest Indian art.[Note: USCIS report that this is regional center is currentlypending re-affirmation as of October 19, 2007]

VERMONTAGENCYOF COMMERCEANDCOMMUNITY DEVELOPMENTApproved: June 26, 1997Reaffirmed by USCIS:March 19, 2007GeographicArea: State of VermontFocus of Export/Economic Growth Activity: Export-relatedcompanies; tourism, hospitality and commercial resorts development.

WHATCOM OPPORTUNITIES REGIONALCENTER,INC. (WORC, INC.)Approved: October 13, 2006Geographic Area: The legal boundaries which constituteWhatcom County, Washington.Focus of Economic Growth Activity: Capital investments andjob creation in assisted living facilities for the elderly withinWhatcom County.


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PART IIITHE EB-5 APPLICATION

PROCESS

THE EB-5 APPLICATION PROCESSIN 12 STEPS

In Part III of this book, we will address the details of applying foran EB-5 visa. In this chapter we’re going to look at the 12 majorsteps that you will take throughout the application process—fromconsulting with a qualified Investment Immigration Attorney toobtaining an unconditional Green Card, and even becoming a full-fledged American citizen. Below I’ll present the EB-5 investmentand application process from the perspective of a client of my firmwho has elected to invest in NobleOutReach. In many respects, theprocess would be similar if we decided to work with a differentregional center.

STEP 1 – Schedule a Consultation with Vaughan de KirbyAs I’ve said before, finding a qualified Investment ImmigrationAttorney is paramount. The EB-5 program is one of the mostcomplex areas of immigration law and one that requires expertiseand experience. For this discussion, I’m going to assume that youhave contacted my firm and have scheduled a consultation withme. In our consultation—whether in person, throughcorrespondence or on the telephone—we will review your personalimmigration needs to make certain that the EB-5 visa is both aviable option and indeed the best vehicle to reach your personalimmigration goals, both for yourself and your family. We willreview in detail the legal requirements of the EB-5 visa and discussthe process of applying for a Green Card. My firm understandshow important your immigration decisions are, and we arecommitted to equipping you with the knowledge to make the mostinformed decision possible. Because my firm is committed toensuring that all our clients are well informed, we charge no fee forthis consultation.


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STEP 2 – Fill Out the Qualifying QuestionnaireIf you decide, after consulting with my firm, that NobleOutReachappears to be the best option for you to pursue your financial andimmigration goals, we will work with you to complete theNobleOutReach investor questionnaire. This questionnaire willhelp my firm and NobleOutReach determine that you are aqualified investor, both from a financial and a legal standpoint.Once you have completed the questionnaire, and onceNobleOutReach and my firm have reviewed it carefully, we will beready to proceed to the next step.

STEP 3 – Retain the Law Offices of Vaughan de Kirby, APCBy signing a retainer agreement with my firm, you are authorizingus to contact NobleOutReach on your behalf and request that theyprovide you and your financial advisors with complete financialinformation for careful review. These comprehensive financialmaterials will enable you and your financial advisor to fullyevaluate NobleOutReach from an investment perspective. My firmstill charges no fee at this point. We do not wish to collect anattorney fee until you have made your decision to move forwardwith your EB-5 application by investing in NobleOutReach.

STEP 4 – Sign a Nondisclosure AgreementOnce you have retained my firm, we will arrange forNobleOutReach to forward to us a nondisclosure agreement. Thenondisclosure agreement is mutual—it’s meant to protect both yourprivacy and the privacy of NobleOutReach. By signing thisdocument, you are agreeing not to disclose to anyone other thanyour immediate family or your financial advisor any of the privatefinancial and procedural information that NobleOutReach willprovide you.At the same time, this agreement also guarantees thatNobleOutReach will not release any of your personal information.


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STEP 5 – Review the NobleOutReach Offering Documentswith Your Financial AdvisorThough my firm believes in NobleOutReach, as your immigrationattorneys we cannot serve as your financial advisors. Yourinvestment with NobleOutReach is a significant one, and we feelit should be made with the care that you would exercise in makingany investment of this size. If you and your financial advisordetermine with independent due diligence that NobleOutReach isan appropriate investment for you, my firm will be ready to helpyou achieve your goal of an EB-5 Green Card.

If after reviewing the NobleOutReach offering documents youdecide that this is not the right investment for you, my firm willcharge you NO FEE. I firmly believe that this is the way thatattorneys and regional centers should do business. You should notincur costs and fees unless you decide to take advantage of thisopportunity.

If you decide to proceed, you are ready to begin making yourinvestment.

STEP6 – Transfer the Necessary Funds to the NobleOutReachEscrowAccountsYou may remember from our previous discussion that all fundsinitially invested in NobleOutReach will be placed in escrow foryour benefit. This means that your investment is placed with a thirdparty banking institution that agrees to hold your funds until yourapplication has been approved. In the very unlikely event that yourapplication is denied, all of your money—the $500,000 investmentand the $60,000 service fee—is refunded to you. Your only costwould be the bank administrative fee, which is typically less than$500.00. You should note that, as of this writing, 100% of theapplications made through NobleOutReach have been granted. My


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firm will not accept you as a client, and NobleOutReach will notaccept your investment, unless we are confident that you will besuccessful.

STEP7 – Compile Documentation of the Source of InvestmentFundsAs we will discuss in more detail later, the United Statesgovernment requires that all funds invested in the EB-5 program beclearly traceable to their lawful source. Later in this book, you willfind a guide to documentation, which reviews the kinds of evidencethat are required in this tracing process. As your immigrationattorneys, we will work closely with you to help you identify andcompile the documentation necessary to meet the lawful sourcerequirement.

STEP 8 – Compile Personal Information and DocumentationIn addition to information about your investment, the U.S.government requires personal documentation for you and yourfamily, to be certain that you are indeed who you say you are beforethey give you a Green Card. This documentation takes many forms,as you will find outlined in the guide to documentation later in thisbook. As your Investment Immigration Attorneys, we will workwith you to identify those items of personal documentation thatwill be necessary in your particular case.

STEP9 – The Law Offices of Vaughan de Kirby Files an I–526petition forWork Alien Entrepreneur with USCISAt this point, we are ready to prepare and file your I–526 petitionwith USCIS. In addition to the petition itself, there are two criticalpieces of the application. First will be the extensive personal andinvestment funds documentation that you have compiled. Thesecond critical piece will be provided by NobleOutReach, fullydocumenting their regional center and their projects.


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NobleOutReach plays a very important role in your applicationand are firmly committed to your success.

STEP 10 – Obtain Your Conditional Green CardHow you obtain your conditional Green Card—and, specificallywhether an interview is required—will depend on the location atthe time your I–526 petition is being processed. If you are living inthe United States, you and your family will go to the local USCISoffice to pick up your permanent resident Green Cards, once yourapplication has been approved. Although local USCIS officeprocedures differ somewhat, no true interview is generally required.

On the other hand, if you are living outside the United States, youmust first be interviewed at the U.S. Consulate or Embassy beforereceiving your permanent resident Green Card. First, you willreceive a notification to prepare documents for the immigrant visainterview. Soon thereafter, you will be notified of the date and timeof your interview. My firm will provide you with a completeimmigration package to bring with you to the consulate and wewill carefully prepare you for the interview process. At theconclusion of the successful interview, you will become a UnitedStates conditional Green Card holder and begin your preparationsfor your immigration to the United States.

No matter where you live, the only condition of your “conditional”U.S. permanent residency Green Card is that your investment in theregional center remains intact for two years. As long as you do notwithdraw your funds during this two-year period, your Green Cardcarries all the benefits of permanent residency. There are norestrictions on where you and your family live, work, or go toschool in the United States.


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STEP 11 – The Law Offices of Vaughan de Kirby Files an I-829Petition toRemove theRestrictionsonyourConditionalGreenCard.After you receive your conditional Green Card, you will wait aperiod of 21 months to reconfirm that the full investment has beenmade and remains invested in NobleOutReach. After 21 months,my firm will begin the process of filing an I-829 petition to replaceyour Conditional Green Card with an unrestricted, PermanentResident Green Card. We will file an I-829 on your behalf prior tothe expiration of 24 months (2 years). NobleOutReach will againwork closely with us to provide USCIS with all the necessarydocumentation. Once USCIS has approved the petition, you will begranted an unconditional Green Card, allowing you and yourfamily to live in the United States indefinitely.

STEP 12 – Become a American CitizenIf you wish, you and your family will have the option to becomeNaturalized Citizens of the United States after you have held yourGreen Cards for a period of five years. If this is your goal, my firmwill be ready at this five-year juncture to help you with theNaturalization process.


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GUIDE TO DOCUMENTATION—SOURCE OF FUNDS

The United States Government requires that the EB-5 applicantpresent proof that the funds to be invested in the EB-5 RegionalCenter came from an authorized legal source.

My firm has as our clear goal the absolute success of your EB-5application. To reach that goal for you, we seek to provideoverwhelming evidence on your behalf. Experience has taught usthat, in dealing with United States authorities, it’s always in yourinterest to provide more documentation rather than less. Listedbelow are the types documentation that we recommend youprovide, depending on the source of the funds.

FUNDS FROM BUSINESS:If you acquired the funds through business, you should provide thefollowing documentation in order to prove that the money waslawfully acquired.

1. Tax Returns for the last three to five years.2. Accountant’s Audit of business financials specificallyverifying source of funds.

3. Bank Statements from where the funds were on deposit.4. Copy of Business License5. Photos of place of business6. Copies of other business documentation if available:

a. Brochuresb. Product or Service listsc. Business cardsd. Municipal Permits or License


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FUNDS FROM STOCK MARKET PROFITSAlternatively, if you acquired the funds through stock marketinvestments, you should provide the following documentation.

1. Brokerage Account Statements.2. Evidence as to where the original stock market investmentfunds originated with similar documentation as outlined inother sources of funds.

FUNDS FROM SALE OF REALESTATE:Likewise, if you acquired the funds the sale of real estate:

1. Evidence of ownership rights.2. Contract of Sale – ownership rights transfer3. Verification that sale proceeds were deposited into a bankaccount demonstrating source of funds.

4. Verification by accounting firm that Client possessedownership rights to the property sold.

FUNDS FROM GIFT:And, finally, if you received the funds as a gift:

1. Affidavit from person giving gift stating the funds are a gift.We will assist you in writing this Affidavit.

2. Complete documentation consistent with source of giftedfunds as outlined in other sources of funds.


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GUIDE TO DOCUMENTATION—APPLICANTAND FAMILY INFORMATION

The U.S. government wants to know as much as possible, not onlyabout the source of your assets, but about you—the applicant—and your family. In a nutshell, USCIS wants proof that you are whoyou say you are, before giving you a Green Card. The following isa list of information and documentation that we recommend youprovide as part of your EB-5 application. The list also includesinformation that you must provide your attorneys, which willenable them to best serve your interests.

1) Names andAddresses (for the last 5 years) of the applicant,spouse, and children.

2) Any aliases (other names used) of the applicant, spouse, andchildren.

3) Copy of Passport for applicant, spouse, and children.4) Birth certificates (translated into English) for the applicant,spouse, and children.

5) Educational Certificates where applicable.6) Copy of College Degree if it would assist in identification.7) Copy of applicant’s Marriage Certificate.8) Do you have more than one wife? If so, my firm needs toknow this information.

9) Copy of applicant’s Divorce Certificate, if applicable.10) Copy of Household Registry.11) Town of birth for applicant, spouse, and children.12) Name and occupation of the father and mother of the

applicant.13) Communist Party membership: If you are a member of the

Communist Party we will need to establish thatmembership was mandatory for employment oradvancement. If membership was voluntary we must show


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that the applicant did not receive special benefits frommembership and was not in a policy making position. Wewill assist you in writing your affidavit that explains thenature of your membership.

14) Court records of any criminal convictions (either in U.S. orabroad): My firm needs to know this information in orderto determine if you are still eligible for an EB-5 visa. Evenif there is a problem, we may still be able to help you.

15) All dates of entries into the United States for the applicant,spouse, and children, and all dates of exits. Ideally, copiesof you passports will determine this information. Youwant to check if the date of exit on the U.S. visa wascomplied with (in other words, whether you left thecountry during the time permitted by the visa).

16) Certified translations of any documents written in alanguage other than English. All translateddocuments should include the following certification onthe bottom of the final page:

CERTIFICATE OFTRANSLATOR’S COMPETENCE

I, (translator’s name) hereby certify that I amcompetent and proficient in both the Mandarin/Cantoneseand the English Languages, and that the above translationis a true and accurate rendition of the birth certificateoriginal of this document:Signature:______________________________________Date:__________________________________________

17) Does the applicant, spouse, or children have anycommunicable diseases of any kind? Will they pass themedical test?


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AFTERWORDBy now you have learned a great deal about the EB-5 visa—itshistory, requirements, and application process. I am continuallyshocked by how few people know that the program even exists.And for many of these people, the EB-5 visa seems tailor-made tomeet their needs and fulfill their hopes of creating a life forthemselves and their families in the United States. Of course,pursuing a Green Card through an EB-5 visa not for everyone. Butif you believe that it is right for you—if you are prepared to invest$500,000 in the U.S. economy, and if you want you and yourfamily to enjoy living, working and going to school in the UnitedStates—then I offer my congratulations: you have likely found thebest means to achieve those goals. It would be my sincere pleasureto help make these goals a reality.


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ENDNOTES

1USCIS stands for “United States Citizenship and ImmigrationServices.” It is the United States’ current immigration agency.

2EB-1 Eligibility and Filing. (n.d.). Retrieved July 7, 2008,from U.S. Citizenship and Immigration Services:http://www.uscis.gov/portal/site/uscis/menuitem.5af9bb95919f35e66f614176543f6d1a/?vgnextoid=3a4df271ab0fd010VgnVCM1000000ecd190aRCRD&vgnextchannel=91919c7755cb9010VgnVCM10000045f3d6a1RCRD

3EB-2 Eligibility and Filing. (n.d.). Retrieved July 7, 2008, fromU.S. Citizenship and Immigration Services:http://www.uscis.gov/portal/site/uscis/menuitem.5af9bb95919f35e66f614176543f6d1a/?vgnextoid=3460194d3e88d010VgnVCM10000048f3d6a1RCRD&vgnextchannel=91919c7755cb9010VgnVCM10000045f3d6a1RCRD

4The INS no longer exists. After September 11th, the U.S.government underwent a significant restructuring in an effort tomore efficiently combat terrorism and ensure preparedness fornatural disasters. This restructuring created an entirely newdepartment of the federal government: the U.S. Department ofHomeland Security. In March of 2003, the Department ofHomeland Security absorbed the former INS and split itsresponsibilities between two new agencies: the U.S. Immigrationand Customs Enforcement (USICE) and the U.S. Citizenship andImmigration Services (USCIS). Currently, USCIS is in charge ofadministering the EB-5 visa program.


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5Immigration through Investment. (n.d.). Retrieved July 3, 2008,from U.S. Citizenship and Immigration Services:http://www.uscis.gov/portal/site/uscis/menuitem.5af9bb95919f35e66f614176543f6d1a/?vgnextoid=4ff96138f898d010VgnVCM10000048f3d6a1RCRD

6To date, USCIS has not issued the guidelines for the policy ofpriority handling of EB-5Petitions.

7Burton, M. L., & Hicks, M. J. (2005). Hurricane Katrina:Preliminary Estimates of Commercial and Public Sector Damages.Marshall University, Center for Business and Economic Research.

8Tozzi, J. (2007, August 27). New Orleans: A Startup Laboratory.Retrieved June 23, 2008, from BusinessWeek.com:http://www.businessweek.com/smallbiz/content/aug2007/sb20070823_490984_page_2.htm

9Fausset, R. (2007, August 29). Old city revels in a new spirit ofinnovation. Retrieved June 24, 2008, from Latimes.com:http://www.latimes.com/news/nationworld/nation/la-na-bigideas29aug29,0,6758566.story?coll=la-home-center

10Luxner, L. (2007, March). EB-5 Visa Program Seeks to PumpInvestment Dollars Into New Orleans. The Washington Diplomat,pp. 6-8.

11USCIS List of Regional Centers. (n.d.). Retrieved August 22,2008, from U.S. Business and Immigration Law:http://vkvisalaw.wordpress.com/2008/05/17/uscis-list-of-regional-centers-2-new-centers-in-ca-approved/


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EB5 Book - Final - English

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Transcript of EB5 Book - Final - English