Safely Selecting a Direct EB-5 Project

As the deafening silence on the future of the EB-5 Regional Center Program grows even more deafening, the March 23rd expiration of the program looms less than a month away.  With literally dozens of proposals flitting about Washington and uncountable back-room negotiations between legislators from both poor rural and wealthy urban states – all beseiged by Big EB-5 lobbyists seeking to perpetuate the conveniently illegal status quo — it is small wonder that we at AVS are getting bombarded with questions about Direct EB-5 and the option of avoiding this hornet’s nest of competing RC interests.  I’ve tried to answer some of those questions in the past few blogs but today I’m going to explain why I am liking Direct EB-5 more and more…even IF the Regional Center program gets extended, as we expect it will.

Direct EB-5 – that is, an EB-5 investment where 10 actual, direct jobs are created at the new job-creating enterprise in the U.S. and there is no economic analysis nor counting of indirect and induced jobs – was the ORIGINAL version of EB-5 enacted in 1990.  The concept of creating USCIS-approved Regional Centers which could pool investor funds and use economic analysis to count indirect and induced jobs came later.  The EB-5 visa category was born without any clear regulatory guidance and, with the creation of the Regional Center Program, things got very complicated very quickly.  Today’s adjudication policies are the result of over 25 years of the industry wrangling with regulators and only now, after all that time of abusive practices, Congress, the USCIS, and the SEC are finally moving actively to curb the abuses by Big EB-5.

EB-5 is, these days, a complicated, long term process and the regulations which need to be observed are myriad; over 90% of EB-5 Regional Centers falsely claim their projects are in  “TEAs” (targetted employment areas permitting a reduced investmnt amount) when in reality less than 10% or so are.  Moreover, these same EB-5 Regional Centers rely almost exclusively on securing investors through the payment of commissions to migration agents overseas, in violation of U.S. law.  When you invest in ANY EB-5 project – Regional Center or Direct – you are entering into a 5-7 year relationship with the people you are entrusting with our investment dollars.  And therein lies the interesting point at which I am driving…

Direct EB-5, in contrast to Regional Center EB-5, is subject to a far less complicated legal process: with no econometric analysis and reliance on clear evidence of the creation of 10 full time jobs for investor.  When I filed my first EB-5 petitions in the early 1990’s they were direct and they flew along seamlessly.  So while the amount of hype and marketing you see online today offering “new” and “direct pooled” EB-5 projects…some of us were doing these over 25 years ago.  Nothing new.

The interesting point is this: the best Direct EB-5 you can choose is one which is offered by a veteran, proven EB-5 Regional Center.  I know that sounds confusing, but this is the point: the very simplicity of the direct job creatio for Direct EB-5 means that 99% of those projects on the market are offered by franchisors and others who have essentially no knowledge of the complexities of EB-5 adjudication today; in contrast, those of us who own Regional Centers and have seen these complicated rules expand continuously are the ones who know the process best!  Look at it this way:  would you entrust your family’s Direct EB-5 to a company which knows nothing about the vast complexities of EB-5 adjudication…or do you want expert guidance from proven, USCIS-approved RC experts?

So, then:  why are no EB-5 Regional Centers involved in the marketing of Direct Pooled EB-5 Projects?  Because Regional Centers are expensive entities designed to raise funds for larger projects and which RELY on the counting of indirect/induced jobs to raise large sums of money.  While an RC project can raise perhaps 50-100% of its capital via Regional Center EB-5 in sectors which substantial job multipliers (industries where the trickle-down effect of EB-5 dollars adds up to many indirect and induced jobs), a Direct EB-5 project which must create 10 direct jobs per investor can only raise a small percentage of total project cost.  Think about it: how easy is it to create 10 full time jobs with $500,000?

AVS is pround to lead the way in creating safe, secure, and solid Direct Pooled EB-5 investments.  AVS has worked years to identify projects which create the necessary 10 jobs per investor by selecting proven enterprise seeded with USCIS-compliant pre-EB-5 bridge financing. 

Right now, AVS is offering a select few Direct Pooled EB-5 Slots structured specifically for our Vietnam family group of investors, using EB-5 bridge financing, which ALREADY have the “10 jobs per investor” proven…BEFORE you invest.

Contact the AVS Vietnam team to find out how to secure your slot today, before the price of EB-5 increases.