palisades china group palisades consulting group, inc. foreign investment in american enterprises:...
TRANSCRIPT
Palisades China GroupPalisades Consulting Group, Inc.
Foreign Investment in American Enterprises:
The “EB-5 Immigrant Investor Program”
Presented byEva Lerner-Lam, President
Palisades Consulting Group, Inc.at
The 2012 New Jersey Women’s Entrepreneurship SeriesThe Westin at Forrestal Village, Princeton, NJ
February 23, 2012
Palisades China GroupPalisades Consulting Group, Inc.
Overview• Traditional sources of capital• “New” source: United States Citizenship and
Immigration Service (USCIS) Immigrant Investor Program (EB-5 Visa)
• Current Status of the Program• Pros and Cons • How to Get Started• Recommendations
Palisades China GroupPalisades Consulting Group, Inc.
Traditional Sources of Capital
• Savings• Family and Friends• “Angels”• Venture Capital Funds
Palisades China GroupPalisades Consulting Group, Inc.
USCIS Immigrant Investor Program• “EB-5,” created by Congress in 1990 to stimulate
the U.S. economy through job creation and capital investment by foreign investors
• All EB-5 investors must invest in a new (since Nov. 29, 1990) or distressed commercial enterprise
• Must create or preserve for 5 years at least 10 full-time jobs for qualifying U.S. workers
• The minimum qualifying investment in the United States is $1 million (or $500,000 in a high-unemployment area (Targeted Employment Area (TEA)) or rural area)
Palisades China GroupPalisades Consulting Group, Inc.
Current Status• Although not new, the EB-5 Program is growing
exponentially due to increasing wealth and global sophistication of the middle class in China and awareness by American cities and towns
• Process is undergoing rapid change toward more flexibility—and accountability--for investors and enterprises
• Mostly “small” individual investors at $500,000 level
Palisades China GroupPalisades Consulting Group, Inc.
Scale
• From FY92 through June 2004, immigrant entrepreneurs who completed the EB-5 benefit requirements and attained permanent legal residency invested about $1 billion.
--US Government Accountability Office, April 2005
Palisades China GroupPalisades Consulting Group, Inc.
Pros and Cons
• Pros:– Substantial cash is available from foreign investors– Small investor to small entrepreneur = same
playing field
• Cons:– “Wild West” conditions for the foreseeable future– Rapid growth is spawning new, unproven
“experts”
Palisades China GroupPalisades Consulting Group, Inc.
How To Get Started
• Prepare documentation that would qualify your enterprise as “new” or “distressed”
• Attend EB-5 Forums to meet agents, attorneys and individual investors
Palisades China GroupPalisades Consulting Group, Inc.
Recommendations
• Read up on EB-5 Immigrant Investor program at the official USCIS website: http://www.uscis.gov/eb-5-investor(Regulations: 8 CFR 204.6 and 8 CFR 216.6)
• Visit your state congressional representative for latest updates on what NJ is doing to facilitate the EB-5 Immigrant Investor Program
• Choose your attorney wisely
Palisades China GroupPalisades Consulting Group, Inc.
Thank you!
This presentation available at:palisadesgroup.com