Executive Action on Immigration - November 20, 2014

This evening President Obama announced his plan for executive action on immigration.  The President has decided to take unilateral action on immigration without support of Congress, and as some polls suggest, without the support of the American populous.

Obama stressed that his immigration action is lawful while critics disagree.  He urged congress to pass a bill on immigration reform in the future months.

What does the President’s executive order entail?

The President made three points related to his plan.  1) More resources will be provided to US Border Patrol agents on the US-Mexican border.  2) There should be an easier and faster immigration path for highly skilled workers graduating from US universities.  3) And finally, the need to deal with the current illegal immigrant population in the United States.

Mr. Obama provided a more detailed plan to accomplish his third point in dealing with undocumented individuals currently in the country.  He stressed increased deportation of criminal illegal aliens and made clear that his goal was not to tear families apart.

Undocumented individuals who have lived in the United States for five or more years, have US citizen or permanent resident children and pass a background check may remain temporarily in the US without fear of deportation.  The President also mentioned that this executive order is not a path to citizenship, not a permanent amnesty and not for recent illegal arrivals.

While many people are celebrating the President’s announcement – many questions are left unanswered.  Obama stressed that the deferred deportation is not permanent, however, no mention of how long the deferment is valid for is mentioned.  Further, many people who followed the Deferred Action for Childhood Arrivals (DACA) in 2012, recognize that still to this day no mention on how long the deferment is valid for has been discussed.

Another issue, and perhaps the most important to immigration lawyers, is how the documentation of these undocumented individuals will slow down the processing of currently pending (and future) legal immigration applications.  Many have also questioned, what sort of message is being sent to potential legal immigrants who believe that there is no point to following the law when they can come to the US, overstay and live undocumented until the government provides them amnesty.

For more information on whether you qualify to remain in the United States due to the President’s executive order, or information on any other immigration matters, please feel free to contact our office.

Attorney Kyle Barella

(202) 621-3198

kbarella@gcpc.com

Three Paths to EB-5?

When researching the options for making an EB-5 investment, clients often hear about the two EB-5 investment paths - direct and indirect.  But are there really three paths?  The answer to this question is yes and no.  This article will detail the different options a potential investor has when deciding to make their EB-5 investment.

By far the most popular option for EB-5 is the indirect regional center investment.  The indirect regional center investment allows the client to make a completely passive investment in a project that will be the sole responsibility of the developer to maintain.  These investments are generally loan based, but in some instances may be equity based investments.

The EB-5 investor will not have any managerial or day-to-day responsibility.  They simply invest their money and leave it in the hands of the developer to meet the immigration requirements so they can become full-fledged green card holders.  It’s an affordable option because the vast majority of regional center projects are located in targeted employment areas that allow for the reduced investment of only $500,000.

What are the positive attributes of an indirect regional center investment?  The reduced investment amount is what makes the regional center path most appealing to clients.  Some investors also enjoy not having to worry about the day-to-day burden of running the business.  While a client may have created a successful business in their home country, they may be unfamiliar with US business practices and culture and opt to have the project managed for them.  For these investors, the regional center path fits perfectly into their immigration plan.

What are the negatives of an indirect regional center investment?  Regional center investments will offer a low return.  This isn’t to say that the project is bad – it’s just the nature of EB-5.  A typical regional center project will generally yield a 0.5% - 1% return.  This isn’t very high, so investors wishing to obtain a larger return should choose a different path for their EB-5 investment.  Clients should be very wary of regional center projects offering them large returns.  Another potential negative aspect is that the EB-5 investor doesn’t have any decision making power in the business.  This may not be ideal for clients that consider themselves to be savvy investors.

So what are the options for investors not wishing to invest through the indirect regional center path?  Here is where the discussion of three paths to EB-5 comes up.  Many clients (and immigration attorneys) misinterpret the rules regarding a direct (non regional center) investment.  Often they think the investor must be involved in the day-to-day operation and running of the business.  They believe they have to live in the same city and go into the business daily to qualify for EB-5.  That is one option, what I refer to as a “true” direct EB-5 investment, but it’s not the only option for direct EB-5.

So what are the two paths under the direct EB-5 umbrella?  It’s first important to examine the rules regulating the requirement that the EB-5 immigrant investor be engaged in the management of the new commercial enterprise.  The EB-5 Program requires the immigrant investor to be engaged in the management of the new commercial enterprise, either through the exercise of day-to-day managerial responsibility OR through policy formulation.  8 C.F.R. §204.6(j)(5). 

For investors courageous enough to take the plunge and run their own EB-5 business, they can do so through the “true” direct EB-5 path.  They will be responsible for the creation and day-to-day management of the business, as well as meeting all the immigration requirements.  Their investment return will be based solely on their own personal efforts.  This path can prove to be risky and should only be undertaken by clients confident in their ability to meet all requirements under the program.

This may work for some investors, but the majority of EB-5 clients do not want to assume full responsibility for their immigration future.  These clients may benefit from a more “hands off” direct investment.  This “hands off” direct investment path is great for investors wishing to invest in smaller projects that may yield significantly higher returns than the indirect regional center investment.  In conformity with the rules, these investors will have a policy-making role by being a corporate officer or member of the corporate board of directors.

These investors get the best of both worlds.  Unlike the regional center path they have some control over the business and typically receive a larger return.  However, there is no requirement for then to run the day-to-day operations and they leave the responsibility of meeting the immigration requirements to the project developer.  The EB-5 investor is free to live and work anywhere in the United States, regardless of the business location.  This path is ideal for all EB-5 investors frustrated with the lack of control and low returns of an indirect regional center investment.

For more information on the EB-5 Visa Program and which EB-5 path is most suited for your investment needs, contact General Counsel, PC and speak to one of our Washington DC EB-5 attorneys. 

www.eb5investmentlaw.com | www.generalcounsellaw.com

6849 Old Dominion Dr. Suite 220, McLean, VA 22101 | 703.556.0411 | kbarella@gcpc.com

Washington DC EB-5 Attorneys | Northern VA EB-5 Attorneys

Immigration Courts to Expedite Children's Cases

Criticism over slow processing times and system backlog has led immigration courts to speed up the cases for Central American children detained at the border. 

Generally when an undocumented alien is detained at the border for attempting to illegally enter the United States they are given a date to report to court for an initial hearing.  Often, due to a large backlog of cases the hearing may not be scheduled months and sometimes even over a year.

Children detained at the border will now be granted their initial hearing within three weeks.  While many Americans are praising this decision to process and potentially deport these children in a timely manner, some fear that the three week expedited hearing does not allow the child to obtain competent legal counsel. 

With a shortage of pro-bono attorneys to represent these children, many wonder if three weeks is enough time prepare a case arguing that the child should remain in the country legally.

Ultimately immigration judges need to ensure that each child has been given proper due process to avoid any unnecessary appeals.  There is a fine line between speeding up cases to promote efficiency, and speeding up cases too fast that may lead to mistakes resulting in even more delay.

For additional information on immigration law or to speak with an immigration attorney, contact General Counsel, PC at 703.556.0411 or by email at kbarella@gcpc.com.

EB-5 Processing Times to Decrease

The EB-5 Immigrant Investor Visa offers a solution for high net-worth individuals to permanently immigrate to the United States.  The program has no language or education requirements, and more importantly, does not require any family ties for sponsorship.  Provided the foreign national has the requisite funds for the investment, he or she has an opportunity to obtain a green card.

Gone are the glory days of EB-5 when I-526 Petitions were approved in 2-5 months.  The past few years have seen a steady increase in processing times of EB-5 Petitions.  It’s not uncommon to hear of investors waiting over 12 months for their approval.  However, there is light at the end of the tunnel.  USCIS has recognized that processing times over a year are unreasonable, and have taken steps to remedy the situation.  

The processing of I-526 Petitions are becoming more streamlined with the recent move of EB-5 adjudication from California to Washington, DC.  USCIS recently advertised on the government jobs website, usajobs.gov for multiple EB-5 Adjudicator position openings.  The posting deadline closed April 16, and USCIS should begin vetting candidates shortly.  

What does this all mean for EB-5 Investors?  The good news is that processing times are decreasing.  With USCIS hiring multiple adjudicators for the program, we should begin to see the processing times drop.  Less than a month ago, uscis.gov listed EB-5 processing at around 13 months.  Today, the times have already dropped to 11 months.  Although this is a small start, we should expect faster processing in the near future.

U.S. Sanctions on Russia and the impact on Russian EB-5 investors

Since the collapse of the Soviet Union in the early 1990s, the United States has welcomed a steady flow of immigrants from Russia – many settling in cities like Miami, New York, Denver, Los Angeles and Baltimore.

Russian EB-5 investors, while prosperous in Russia, choose to leave when government corruption and unpredictability become a factor.  These individuals recognize that Russia cannot provide a safe investment environment to protect their wealth, only economic uncertainty. This is evident with Russia’s recent annexation of Crimea, which contributed to the ruble and Russian stock market plummeting earlier this month. The $500,000 EB-5 investment now costs up to 8% more in rubles than it would have just a few months ago. Fortunately, many wealthy Russians who qualify for the EB-5 Visa maintain dollar and/or Euro accounts outside of Russia.

With the recent U.S. sanctions in place, can Russian investors expect other uncertainties during the investment process?

On its face, it appears that unless the investor is part of President Vladimir Putin’s “inner circle”, most EB-5 clients will not be directly affected by the sanctions.  However, although the sanctions appear insignificant to most individuals in Russia, recent sanctions against Bank Rossiya for example, prompted Standard & Poor’s (S&P) rating agency to downgrade its outlook for the lender from stable to a negative rating. As a result, the S&P foresees a deterioration of the bank’s future business and financial profiles. Further, Bank Rossiya can no longer engage in dollar-based transactions, and western banks will not be able to engage in business with them. 

The sanctions on Bank Rossiya were meant to directly impact Putin and other top government officials. The actual ramifications to potential investors, for now, are minimal. However, some economists are predicting the crisis over Crimea could tip the Russian economy into a recession this year, which could serve as a push to potential EB-5 Investors to leave Russia sooner.

Barella Law | +1 (239) 228-2895 | kbarella@barellalaw.com | www.barellalaw.com

The Information contained in this blog is for information purposes only, and should not be considered legal advice for any individual case or situation.  The information provided is not a substitute for consultation with an attorney.  No attorney/client relationship is created by the information contained herein.

The Cost of an EB-5 Regional Center Project Investment

As an immigration attorney representing EB-5 investors, one of the frequently asked questions is: what is the total cost of an EB-5 Regional Center investment?  Savvy investors understand, in order to go through the EB-5 Visa process, they will incur other expenses in addition to the $500,000 capital investment.

So what is the cost of an EB-5 investment?  Unfortunately, there is no set dollar amount.  Each client’s case is distinct, and there are a multitude of factors that may influence their costs.  This article will address the most common EB-5 costs - but it’s important to keep in mind that expenditures for your specific case may vary.

The Investment:
One cost that is universal for all clients is the invested capital.  Most Regional Center projects are located in a Targeted Employment Area, which allows for a reduced investment amount of $500,000.

Legal Fees:
Just as you wouldn’t forgo obtaining a doctor to perform a surgery, you also want to be sure to retain a competent EB-5 attorney to file your petition.  Depending on whether your lawyer bills a flat fee or hourly rate for an EB-5 investment, you can expect to pay anywhere from $10,000 to $20,000 for legal services.  Depending on the firm you choose, this may or may not include the services of an EB-5 Investment Advisor.

Project Administration Fees:
The majority of projects out there charge an administration fee when subscribing to their project.  The typical administration fee ranges from $30,000 to $60,000.  These fees are generally used to pay marketing costs, as well as “finder fees” for agents abroad.

Filing Fees:
With every I-526 Petition filed, USCIS requires the payment of a filing fee.  Currently, the filing fee for an I-526 Petition is $1,500.

Translation Fees:
USCIS requires any documentation or evidence not in English to be accompanied by an English translation.  Further, in their latest EB-5 stakeholder meeting, USCIS indicated that the entire document will need translating and abstract translations are not accepted.  Translation service fees vary depending on the document content and number of words.  You can expect to pay between $0.25 and $0.50 per word.

Miscellaneous Costs:
If you choose to travel to the US to speak with Regional Centers or your attorney, you might incur additional expenses such as travel, housing and visa costs.

Although these are a few of the most common expenses associated with the EB-5 investor visa, additional costs may arise depending on your individual case.  You may also be able to mitigate the costs of EB-5 through varies means.  A conservative estimate of an EB-5 investment from start to finish will be around $568,000.

Barella Law | +1 (239) 228-2895 | kbarella@barellalaw.com | www.barellalaw.com

The Information contained in this blog is for information purposes only, and should not be considered legal advice for any individual case or situation.  The information provided is not a substitute for consultation with an attorney.  No attorney/client relationship is created by the information contained herein.

Conférence Snowbirds en Floride (Snowbirds Conference in Florida)

On January 28, Barella Law, LLC spoke to a group of Quebeckers at the annual Conférence Snowbirds en Floride (Snowbirds Conference in Florida) in Aventura, Florida.

The conference was a great opportunity to explain the different immigration options Canadians have to enter to the US.  We also had the opportunity to meet others in professional industries that serve snowbirds in Florida.Along with our immigration firm, other speakers included a CPA, insurance representative, financial planner, and a Québec attorney.

The conference attendees were very receptive and eager to ask questions.  Barella Law continues to promote and build a relationship with our clients in Québec, as well as other parts of Canada, and around the world. We look forward to hopefully participating in next year’s conference.

Barella Law | +1 (239) 228-2895 | kbarella@barellalaw.com | www.barellalaw.com

Conditional Green Card Through EB-5: Your Rights and Responsibilities as a Permanent Resident

The wait is over, and you have finally received your US Permanent Resident Card (“Green Card”) through the EB-5 program.  What happens now?  Chances are you’ve spent countless hours researching the EB-5 visa, regional centers, projects, attorneys etc.  However, do you know what your rights, obligations, and responsibilities are as a newly arrived Permanent Resident?

Firstly, an approved EB-5 visa entitles you to a two-year conditional Green Card.  A conditional Green Card is exactly what it sounds like.  There are certain conditions that must be met before you receive a “full-fledged” and renewable Permanent Resident Card.    At the conclusion of two-years, you will need to have an attorney file for you, form I-829, Removal of Conditions.  Provided you show that your EB-5 investment has created the requisite number of jobs among other factors, you will be issued a Permanent Resident Card, valid for ten years.  In the future, you need only apply for renewal of your card before it expires.

As a legal permanent resident, you are entitled to many of the same privileges as United States citizens.  You may live, work, or travel anywhere in the United States.  You and your children can attend school and qualify for in-state tuition breaks.  However, you may not vote in elections, or make any false claims of US citizenship.

One question many immigration attorneys receive is, whether legal permanent residents can spend a significant amount of time outside the US.  The goal of permanent residency is just that – to be a permanent resident of the United States.  Any prolonged period outside of the country may be seen as abandonment of your permanent resident status.  It is important you remember to make the United States your permanent home.  

After maintaining permanent residency for a period of five years, you may be eligible to apply for US citizenship.  Benefits of US citizenship include, the right to vote, obtain a federal job, sponsor family members for residency, and travel with a US passport.

For more information on the EB-5 visa program, or any other US immigration matters, please contact our office.  

Barella Law | +1 (239) 228-2895 | kbarella@barellalaw.com | www.barellalaw.com

The Information contained in this blog is for information purposes only, and should not be considered legal advice for any individual case or situation.  The information provided is not a substitute for consultation with an attorney.  No attorney/client relationship is created by the information contained herein.