Chicago accepts illegal immigrants

1990, the us congress passed the EB-5 law on American investment immigration, which was signed by George H.W. bush. The purpose is to attract foreign entrepreneurs to invest and create jobs, thus stimulating the economic development of the United States. In the past 24 years, EB-5, an American investment immigrant, has never raised its price, which is considered to be super stable among these major immigrant countries. Our law firm has been practicing in the United States for more than 13 years, and the changes we have seen in American immigration law are basically developing in a more reasonable, economical and humane direction. The ups and downs like Canada are rare and basically belong to the type of gradual reform. On the one hand, it is steady and coherent, on the other hand, it is a bit slow, which is related to the characteristics of the two-party system and the intervention of illegal immigrants.

In recent years, with the warming of EB-5 investment immigrants in the United States and the recovery of the American economy, many people think that the demand for EB-5 investment immigrants in the American business community is not so strong, so they increase their expectations for the price increase of EB-5 investment immigrants. The price increase is certain, but the reason is just the opposite. It's not unnecessary, but it needs to be stronger.

(Background: 1990 When Congress passed the EB-5 law on investment immigration, there was no concept of investment immigration regional center at that time. The EB-5 regional center for American investment immigration, that is, the law of "indirect employment" can be used, was passed on 1992 as a supplement to the EB-5 law of 1990 investment immigration. This 1992 regulation on investment in regional immigration centers is temporary and needs to be re-voted every three years to decide whether to extend it. The last time the National Assembly postponed voting was on September 30th, 20 12, and the next time will be on September 30th, 20 15. )

Let me analyze it separately, and welcome people in the industry and those interested in overseas investment such as EB-5 immigration through American investment or American real estate development to participate in the discussion.

From 20 12 to 20 15, the immigration situation is completely different.

20 12 the economies of the United States and major western countries have not yet emerged from the crisis. All countries have noticed the economic strength of immigrants from China. Some European countries are preparing or just starting to open projects such as housing purchase immigration and investment immigration. American investment immigrant EB-5 has just entered the expansion period. But by 20 14, Canada has stopped investing in immigration across the board. Recently, it was reported that 2 million Canadian dollars venture capital immigrants have been opened, but there may only be 50 places, so the rich people in China and their money are basically no longer welcome. On the other hand, Canada has relaxed its regulations on experienced and skilled immigrants and announced a series of policies such as "fast immigration". The current price of Australian investment immigrants starts from 5 million Australian dollars, Britain rises to 2 million pounds, Hong Kong may rise to 2,000 Hong Kong dollars, Hungary rises in price, Portuguese immigration agencies have scandals, and so on. The general feeling is that the money of the rich in China has depreciated. After all, technology and creativity are more important to the long-term economic development. What developed countries want most is talent, not money. However, due to the particularity of EB-5, the United States will not tighten the EB-5 investment immigration policy in the foreseeable future, although the United States will certainly strengthen the immigration of high-tech talents like other western countries.

Economic needs, but also value for money.

The reason why the United States will not tighten the EB-5 investment immigration policy is because the EB-5 investment immigration in the United States is qualitatively different from other countries. It allows foreign entrepreneurs to invest and start businesses freely in the United States and creates employment opportunities for Americans. At the same time, American enterprises are also allowed to freely introduce foreign investment and immigration funds, and independently use these funds to carry out economic activities such as business development. Therefore, EB-5 has a larger non-governmental foundation than investment immigrants from other countries and is welcomed by entrepreneurs from all sides. It reduces the cost and difficulty of financing (especially mezzanine loans), makes some projects feasible, relatively improves the profit rate and reduces the risk of the project. Therefore, even if the U.S. economy recovers in an all-round way, the EB-5 policy of American investment immigrants will certainly be retained at the request of the business community, but will be constantly adjusted in the specific implementation.

Of course, if we want to keep it and develop it, we should also maintain its "reasonable value". To put it bluntly, Americans still have to feel "worthwhile." Looking at other countries, it is indeed time for the United States to raise the price of EB-5. If the price goes up, we will be more at ease and will not raise its price. On the contrary, they will worry about whether Americans are still interested and whether policies will be tightened.

The arrow is on the string, when will it be issued?

Although the EB-5 reform bill for investment immigration proposed in the past two years has not been passed, it has clearly put forward the price increase plan. The price increase is imminent, when will it be issued? On September 30th, 20 15, when the National Assembly "postponed the vote on the plan to invest in immigrant regional centers", the price increase is most likely to happen.

How will the price of EB-5 rise?

If it is unexpected, it should be based on the consumer price index. The following table is the CPI-U data of 1990 to 20 14 and 10 released by the US Department of Labor. 1990, and the average CPI-U is130.7; 20 14 years, and the average value of 10 month is 236.987; In 24 years, CPI-U has increased by 1.8 13 times. Based on this calculation, the current investment of $500,000 in tea areas will rise to $906,500, and the non-tea areas will rise to $654.38+0.810.3 million.

Who wants to raise prices except the US government?

To put it simply, the American business community, specifically the EB-5 project in the United States, wants to raise prices most, and the price increase will definitely be at the best time, not at ordinary times. Legend has it that IIUSA Investment Association will advise Congress to raise the price of EB-5. As an alliance organization of regional centers, IIUSA has spared no effort in the promotion and maintenance of EB-5, but it must be remembered that it is an organization of American project parties, not an organization that directly serves our China immigrant investors.

Isn't the United States worried that EB-5, an American investment immigrant, will lose its appeal to China people after the price increase?

This is why the price of goods will rise at the best time, not the other way around. At present, the annual quota of EB-5 is in short supply, and most families who choose to invest in the United States should be able to bear the price increase. Moreover, if the price rises to 1.8 times, 45% of investors need to be reduced, and the total amount of financing will be lower than when the price does not increase. At present, the price increase may not have such a big impact on the number of investors. Therefore, judging from the total amount of funds raised, the United States is definitely profitable. In addition, even if the price rises, compared with other western countries such as Australia and Britain, the price of EB-5 is still low. EB-5 is the most attractive investment immigrant in the United States, considering the preferential tuition fees that small international students can enjoy after immigration.

Who is the loser after the price increase?

Families unable to afford an investment of about $900,000.

Because of the price increase, only EB-2 and EB-3 students in China can be considered.

Who is the winner after the price increase?

1, United States: As mentioned above, when the physique rises to 1.8 times, as long as the number of investors decreases by less than 45%, the total amount of EB-5 financing in the United States will only increase, not decrease. If the number of people remains the same, the total amount of financing will increase by 1.8 times.

For example, in 20 14, the United States * * * received 1 1000 I-526 applications, with accumulated financing of 5.5 billion US dollars. See /newlvshi/blogIn.asp? Id=8 1, if the price of EB-5 is $900,000, it will reach $9 billion. American economic circles should cheer!

2. American project party: As far as the project party as a whole is concerned, the total amount of financing will increase. As far as individual project parties are concerned,

Their financing difficulty will be greatly reduced. For example, in the past, financing 50 million US dollars required 100 investors, and only 56 people were needed after the price increase. Finding 100 investors is much more difficult and time-consuming than finding 56 investors.

The proportion of EB-5 fund in its project investment capital will greatly increase, thus reducing its dependence on other financing channels such as bank loans. As we all know, the construction investment of a project consists of three parts: the construction loan of the bank, the EB-5 fund for investment and the equity contribution of the project party. If the construction investment (including soft cost and hard cost) of a project is $65.438 billion, 654.38+065.438+000 jobs will be created. If the price of EB-5 is $500,000, you can get as much as $55 million in EB-5 investment and resettlement funds, but after the price rises to $900,000, you can get as much as $99 million in EB-5 investment and resettlement funds, which basically solves the whole construction investment demand and no longer needs bank construction loans and self-owned funds. This will make many impossible tasks possible.

Reduce costs and increase profits. The bank's non-EB-5 construction loans have high interest rates and strict application conditions. After changing EB-5 funds into investment immigrants, the development cost of the project side will be greatly reduced.

The repayment period and control right of EB-5 investment resettlement funds are often in the hands of the project owner or the regional center controlled by the project owner. Unlike bank loans, which have strict repayment period and serious delay consequences, the project owner will have more room for project operation. In this case, we should be the first company in China to obtain EB-5 investment control on behalf of investors by establishing and controlling EB-5 regional center and EB-5 limited partnership in the United States.

3.EB-5 investment immigration: Simply put, it will be smoother and easier to apply for EB-5 investment immigration after the price increase. As we all know, the approval rate of I-526 and I-829 has steadily exceeded 90%, even reaching nearly 98%. In other words, as long as there is no problem with EB-5 investment immigration project, it is no problem to get a temporary official green card. So what's wrong with EB-5 projects in general? Apart from fraud, the problem may mainly lie in two aspects: first, the number of jobs created is not enough, and second, the project itself has failed.

After EB-5 investment immigrants raise the price, it will completely solve the problem of insufficient employment creation in real estate projects, except for fraudulent projects. As we all know, as long as a project can create more than 10 jobs, it can be regarded as an investment immigrant, but it can only recruit 1 person, create 20 jobs, recruit 2 people, create 10 jobs, and recruit at most 10 people. If the project party reasonably sets the investment according to the actual jobs that can be created, However, the problem is that some project parties are not strong enough, and it is necessary to increase the amount of EB-5 investment and immigration funds in various ways, such as using tenants for employment, focusing on customers' consumption and employment, and even inflating the construction cost, which will lead to the risk of being rejected by the immigration bureau. However, once the price of EB-5 investment immigrants rises to $900,000, the total amount of EB-5 fundraising itself will increase by 80%, so there is no need to increase jobs in vain. It is precisely because of this that EB-5 investment immigrants are rarely rejected because of job creation.

The quality of the project itself. The price increase itself will not improve the quality of EB-5 project, but it will put the project quality in the most prominent position. After the price increase of EB-5 investment immigrants, in addition to fraud, the main problem that EB-5 will face will be the quality of EB-5 project itself, or more accurately, the "project investment quality". As I said in many previous interviews or articles, the quality of EB-5 project depends not only on the project itself, but also on the systematic problems such as the composition of investment capital, investment control and rationality of investment behavior involved in a commercial investment behavior itself. I won't explain this. If you are interested, please check out my other articles and video interviews.

4. China Project Party:

I have been promoting for many years that EB-5 investment immigration is the best way for China capital (whether state-owned or private) to enter the United States.

After the price increase of EB-5, it will be easier for China Capital to jointly develop real estate in the United States with EB-5 Capital, and develop and build a new residential area in China in combination with Sino-US 10 visa.

5. EB-5 applicant in China:

In the future, we may not have to worry so much about creating employment opportunities, but the quality of project investment will be greatly improved, not only focusing on the project itself, but also on higher-level investment control.

There will be more and more projects to provide applicants with the first mortgage and repayment order. If there is an EB-5 building project in new york or Seattle recently, all the investment will come from EB-5, and all the residential units will be owned by EB-5 customers. Would you not like such a project? Some people say that projects without bank loans are unsafe because they have not been examined by banks. Is it safe to get bank loans or government bonds? The bankrupt beef factory project is supported by the government, and even the original EB-5 regional center is a government regional center; The Chicago Convention Center project, which was caught in a fraud scandal, was supported by the government's bond issuance plan, but the scandal broke out ahead of time and was not issued in time. The conclusion is that the investigation project still needs case analysis, and the standard of death cannot be used.

How will the price increase change the overall pattern of EB-5 investment immigrants in the United States

The main project of EB-5 investment immigrants at present is construction. For construction projects, the basic investment composition of EB-5 at present is: construction loans provided by banks or governments, shareholders' equity investment, plus EB-5 loans. EB-5 played the role of mezzanine loan. For the project party, it is difficult to obtain mezzanine loans other than EB-5, and in addition, it is necessary to pay very high interest, generally 12-20% per year. It can be said that in the process of American economic recovery, it is precisely because of EB-5 investment fund that many projects that are difficult to obtain mezzanine loans have developed and the cost of the project parties has been greatly reduced. At the same time, the project party will transfer the project risk to EB-5 investment resettlement funds, unless the project party provides reliable mortgage. EB-5 investment immigrants also promoted China people's real estate investment in the United States. It can be said that without EB-5 investment immigrants, the rapid development of American real estate in recent years may not happen.

But let's look at it from another angle. Without the construction loans from banks and the government and the upfront investment from the project parties, EB-5 investment resettlement funds can also find a matching portfolio fund. Because EB-5 investment resettlement funds alone cannot meet the capital needs of a project, it is impossible to get a green card through EB-5 investment resettlement. However, after EB-5 investment immigrants raised their prices, the situation was completely different. For example, a 1 billion dollar project will create 1 100 jobs and raise 10 investors at a price of 500,000 dollars, with a total investment cost of 55 million dollars. It still creates 1 100 jobs and raises 1 10 investors, but it can raise 99 million US dollars, accounting for 99% of the total cost, which basically meets all investment needs.

The change of this ratio is revolutionary for EB-5 investment immigrants. Since then, EB-5 project has got rid of its dependence on other supporting capital, and the development of American real estate projects can be completed only by raising EB-5 itself. How big this influence will be, everyone can give full play to their imagination. A good project will no longer be restricted by various financing conditions as long as it can convince EB-5 investors. It will also be possible for crowdfunding to build houses in the United States.

However, remind investors to beware of bad projects after the price increase. Eliminating bad projects depends on professional quality and professional quality.