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Rosenthal LLP.

EB-5 HOT TOPICS

2016 US Investment Executive Training ProgramChina Investment Summit- June 30, 2016

Joseph M. Barnett, Esq.

Attorney at LawWolfsdorf

Rosenthal LLP

• Changes and Extension to EB-5 Program EB-5 区域中心项目的延期和变化• Other Legislative and Administrative (USCIS/DOS)

Action 立法方面的进展 行政法规改革（通过移民局） • EB-5 Quota and Waiting Line for Chinese EB-5

Investors EB-5 签证配额和中国申请人等候时间（移民签证）• Can a Chinese Minor be EB-5 Principal Investor? 未成年人是否能做 EB-5 主申请人

TOPICS

This presentation is designed to provide practical and useful information on the subject matter covered. However, it is provided with the understanding that no legal, tax, accounting, or other professional services are being rendered or provided. If legal advice or other expert assistance is required, the services of a competent professional should be sought.

本演讲文稿旨在提供与主题相关的实用信息，不构成任何法律、税务、会计或其他专业服务。如有必要，请另寻您所需要的法律咨询或者其他专业服务。

DISCLAIMER 免责声明

• 20 attorneys and over 50 professionals offering high volume EB-5 case filings for over 20 years• Offers full immigration services to clients from over 100 countries• Offices in Los Angeles, California and New York City, New York

Bernard Wolfsdorf, Esq.• 2016 Who’s Who Legal “Most Highly Respected Immigration Lawyer in North America”• 2015 Law Dragon: “Top 20 Most Powerful U.S. Immigration Lawyers”• 2010-15 Who’s Who Legal “Immigration Lawyer of the Year” • Past President of the 14,000 lawyer American Immigration Lawyers Association (AILA).• Member of ABIL, Global Alliance of Business Immigration Lawyers

Los Angeles Office EB-5 Team

Changes to EB-5 Program EB-5 项目改革Legislative Action (by U.S. Congress)

• EXTEND EB-5 Regional Center Program, set to expire on September 30, 2016, and/or

• CHANGE EB-5 Law

Administrative Action (by USCIS within DHS)

• CHANGE EB-5 regulations (CANNOT EXTEND)

• AND, if legislative action is taken, MODIFY existing EB-5 regulations

立法（通过美国国会）• 项目延期 EB-5 区域中心项目在

2016 年 9 月 30 日到期，到期后延长项目• 法律变革 在延长项目的同时变法行政改革（通过移民局和国安局）• 行政法规变化 改变 EB-5 相关规定（不能沿用）• 如果国会变法，修改 EB-5 现有的行政法规

Extension of EB-5 Regional Center Program EB-5 区域中心项目延期

• U.S. Congress must act by 9/30/16

•Can make permanent without changes (Unlikely)•Can make permanent with

changes (Election year concerns)•Can extend with changes

(Potentially)•Can extend without changes

(Most likely)

It is most likely that Congress will pass a "continuing resolution" for the entire appropriations bill to December 15, 2016 (until after the election), and then again to March 15, 2017, for the incoming newly elected Congress to handle next year.

• 美国国会必须在 2016 年 9 月 30 日前行动•可能允许成为永久项目，并且不变法（可能性不大）•可能在变法的同时允许成为永久项目 （有选举年的顾虑）•有可能在变法的同时短期延长项目（有可能）•有可能不变法，但短期延长项目（最有可能）

最有可能的是国会通过“持续决议”短暂延 期 至 2016 年 12 月 15 日 （ 大 选 以后），然后再次短暂延期至 2017 年 3 月15 日，给新当选国会作为明年工作内容。所 以 我 们 预 测 区 域 中 心 项 目 会 延 期 到2017 年 3 月 15 日，期间没有变化。

Legislative Action 立法方面的进展• Since 2015, 7 EB-5 bills proposed in

U.S. Congress

• Issues Addressed:• Extension of Regional

Center Program• “Integrity Measures” • TEA Reform• Visa Numbers and Backlog• Non-Retroactivity

• H.R. 4530: EB-5 Integrity Act of 2016 • Introduced in House of Rep. on

February 10, 2016

• Referred to Subcommittee on Immigration and Border Security on February 29, 2016

• 从 2015 年起，向国会提出了 7 套EB-5 法案

• 法案涉及的问题 :• 延长区域中心项目• “ 诚信措施” • TEA 改革 • 签证名额和排期• 新法有无溯及力

• H.R. 4530: 2016 EB-5 诚信法案 • 2016 年 2 月 10 日提交众议院• 2016 年 2 月 29 日推荐给移民和边境安全委员会

Legislative Changes 立法上的变革• Reauthorization of EB-5 Regional

Center Program for 5 Years

• Integrity Measures” to Prevent and Address Fraud:

• More oversight/requirements on projects by RCs

• Disclosure of fees/relationships with 3rd parties

• Certify compliance with U.S. laws (immigration, securities)

• Protection of “Good Faith” investors who may be harmed by regional center misconduct and/or fraud

• Provisions to strength national security

• 允许 EB-5 区域中心项目延期 5 年

• 增加“诚信措施”防止和惩罚欺诈行为：• 对区域中心项目提出了更高的要求和更多监管• 披露与第三方的费用和关系• 遵守美国法律（移民法，证券法）• 保护可能会因区域中心的不当作为或欺诈收到损害的善意投资人• 增加保障国家安全的法律条款

Legislative Changes 立法上的变革• Increased Minimum Investment

Amount:

• Current Regulations: $500K for TEA and $1M for Non-TEA

• Original Proposal: $800K for TEA and $1.2M for Non-TEA

• What I’m Hearing: $600K for TEA and $750K for Non-TEA

• Targeted Employment Area (TEA) Definition:

• New Market Tax Credit (NMTC) criteria for TEA eligibility in economically distressed urban and rural areas

• 增加最低投资金额 :

• 现有法规： TEA 地区投资 50万美金，非 TEA 地区投资 100万美金• 原有提案： TEA 地区投资 80万美金，非 TEA 地区投资 120万美金• 我们听到的最新消息： TEA 地区投资 60 万美金，非 TEA 地区投资 75 万美金

• 高失业率区（ TEA ）定义 :

• 用新兴市场税收抵免 (NMTC)标准定义 TEA ，强调农村和经济落后地区

New Market Tax Credit Criteria 新兴市场税收抵免1. Low Income Communities (LIC)

• Poverty rate over 20%, or, in rural area, where average family income does not exceed 80% of state average family income

2. Distressed Areas• Census tract with poverty rate

over 30%, or census tract with average family incomes does not exceed 60% of state average family income, or census tract with unemployment rate 1.5% higher than national average

OR• Meets 2 of 14 requirements

(SBA HUB Zone, Brownfield site, federally designated empowerment zone, etc.)

1. 低收入地区 (LIC)• 贫困率在 20% 以上，或是该地区中等家庭收入低于全国中等家庭收入的 80% 的农村地区

2. 贫困地区• 贫困率 30% 以上的人口普查地段，或者平均家庭收入低于全国家庭收入 60% 的人口普查地段，或者失业率高于全国水平

1.5% 的人口普查地段或者• 满足 14 个条件中的 2 项（小企业枢纽地带，棕色地段，联邦政府指定贫困区等）

Legislative Changes 立法上的变革• Visa Numbers and Backlog

• Increase total # of employment-based (EB) visa numbers

• Recapture unused, wasted visas within the EB category

• Eliminate counting of derivatives when calculating the annual cap

• Removal of country quotas• Temporary use or permanent

reallocation of visa numbers from another visa category

• Non-Retroactivity• No retroactive application of new

rules to investors who have I-526 petitions pending or approved

• Reasonable implementation of new rules for projects that have filed for approval

• 解决排期 增加职业移民类别的签证名额总数 通过重新利用 EB 移民类别中流失的、从未被使用的签 不计算附属申请人的签证名额 不按国家限制签证数量 临时或永久使用其他签证类别的名额

• 新法不追溯旧案 新法的规定不适用已经递交的和已经批准的 I-526 申请 对已经有 I-526 递交或批准的项目合理适用新法的规定

Administrative Action (by USCIS)行政法规改革（通过移民局） • Designation of TEA• Indirect job creation• Investment amount• Material changes

effect on conditional residency

• Regional center designation process

• Monitoring for regional center compliance

• TEA 资格的决定• 间接就业数量的计算• 投资金额• 项目重大变更对获得临时绿卡的影响• 区域中心批准程序• 对区域中心的监控措施

We expect USCIS to publish a Proposed Rule in December 2016. We expect the effective date to be around July 2017--by which time the Congress may have already acted.

移民局可能通过行政法规改变投资金额。我们预测移民局在 2016年 12 月给出提案。新的投资金额的生效日期预计在 2017 年 7 月左右，届时国会应该已经作出变法行动。

Administrative Process 行政程序• Advance notice of proposed

rulemaking

• Publish actual proposed regulatory language in the Federal Register

• Public comment period, which may last 30 to 180 days, or so

• If public comments precipitate drastic revisions, a second draft may be published in the Federal Register for further comments

• Proposed rule becomes a final rule, with minor modifications and full response to comments submitted by the public

• Final rule becomes effective (with most rules becoming effective some time after initial publication to give regulated parties time to come into compliance)

• 对行政法规变化的提前通知• 在《联邦纪事》发布行政法规变化建议• 允许公众在 30天到 180天中对行政法规变化建议提出意见• 如果按公众意见需要大幅修改行政法规变化建议，可以在《联邦纪事》发布第二稿• 当新的法规通过后，对公众意见给出回复• 新的法规生效（通常新法规的生效日应该在法规颁布以后，，以便相关人员有时间做出变更来遵守新的法规）

June 2016 - Notice of Proposed EB-5 Rulemaking2016 年 6 月 – EB-5 行政法规变更通知

EB-5 Processing Times 处理时间USCIS average processing times as of April 30, 2016

USCIS 2016 年 4 月 30 日平均审理时间

EB-5 Processing Times 处理时间USCIS estimated hours to handle a case

USCIS 预测平均处理案件的时长

Proposed New EB-5 Filing Fees 提议新的 EB-5 申请费

The public has three months to comment. The rule specifically invites feedback from regional centers 公众有三个月发表评论。此项提议特别期待来自区域中心的反馈。

Follow-up Options 后续跟进选择(1) Check case status of I-526 or I-829 online at https://egov.uscis.gov/casestatus/landing.do.在 https://egov.uscis.gov/casestatus/landing.do 查询 I-526 或 I-829 案件进程(2) Send inquiries on past due cases to USCIS.ImmigrantInvestorProgram@uscis.dhs.gov 审理时间过长的案件请发邮件给 USCIS IPO

• IPO will usually respond within 14 calendar days IPO 通常会在 14天内回复• IPO only responds to inquiries submitted by Petitioner or attorney at record IPO只会对申请人本人或者在案的律师的问询做出回答

(3) If no response from IPO or not satisfied with the response 如果没得到回复或者对回复不满意时• Add the word “ESCALATE” (in all caps) to the subject line and summarize why you

believe the matter needs further attention 在邮件标题加入 ESCALATE ，并陈述为什么该案件需要更多关注• Allow three weeks for review and response 有 3周的审核和回复时间

(4) Submit Ombudsman’s inquiry 向信访办公室问询(5) Contact U.S. federal government congressmen and senators to assist - should be used cautiously

Writ of Mandamus 履行职责令诉讼• Mandamus is a judicial remedy in the form of a court order to compel a government

body to take specific action which that body is obligated under law to do 履行职责令诉讼是法庭一种司法补救手段，以法院执行令的形式，在法律框架 下迫使政府机构采取相应措施。• It compels the USCIS to adjudicate. It does not compel the USCIS to approve a case履行职责令诉讼促使 USCIS审理案件。并不控制移民局的审核结果。• Plaintiff: EB-5 investor • Venue 诉讼地点• Exhaustion of remedies – Plaintiff must show that he/she has exhausted the

available administrative remedies (sent emails to IPO, submitted Ombudsman’s inquiries, etc.) 用尽补救办法 - 原告必须证明已用尽现有的行政补救办法（发送邮件给IPO ，向信访办公室问询等）

• The principal issue is whether USCIS has “unreasonably delayed” the adjudication

• CONSIDER BEFORE filing a writ of mandamus:

• A lack of progress by JCE• Problems in the investor’s

immigration history or SOF• SEC investigations into the

Regional Center sponsoring the EB-5 project

• Adverse findings during FBI security checks

• “Material change” has occurred

• DOJ attorney will often review the substance of the case and may prefer to resolve the case through negotiation/settlement, but investor should be prepared to respond to a motion to dismiss

• 在递交履行职责令诉讼前需要考虑的因素： • 项目是否进展缓慢• 投资资金来源是否有问题• 证监局是否正在对区域中心展开调查• FBI 的安全检查中是否有不利发现• 项目是否发生“重大变化”

• 司法部律师往往会审查诉讼请求的实质内容，并可能更愿意通过谈判和解 ，但是要做好回复不予受理的准备

Writ of Mandamus 履行职责令诉讼

• Congress has allocated approximately 10,000 visa numbers for EB-5 investors and family members each year. 国会每年分配 10,000 签证给 EB5 投资人及家庭成员

• This quota was established in 1990 and has never been changed. 这个配额自 1990 年起未曾改变

• Until recently, this 10,000 allocation has been sufficient to meet demand. 很久以来 10,000 张签证的配额都不会用完

• With the increased demand in recent years, 10,000 visas are no longer sufficient waiting line 但近年需求的激增致使签证配额不够，于是出现了排期

• The waiting line is now over 2 years and will get longer, so it’s very important to plan ahead 目前排期已超2 年，因此未雨绸缪是当务之急

WHAT IS THE EB-5 QUOTA?EB-5 签证配额是什么

IT HAS BECOME CRITICAL TO PLAN AHEAD • How long is the Waiting Line for Chinese EB-5

Investors?• How does Child Status Protection Act work, and are

EB-5 Investor’s children eligible derivative beneficiaries, or have they “aged out”?

• Can Chinese Minor Become Primary EB-5 Applicant?• What other immigration options are available to

current/prospective EB-5 investors?

The EB-5 Quota & Waiting Line for Chinese EB-5 Investors

Form I-526 Statistics from USCIS(Published 5/25/16)

Form I-829 Statistics from USCIS(Published 5/25/16)

5 Observations from Statistics from USCIS (Published 5/25/16)

• 86% decline in I-526 filings from 2016 Q1 to Q2• Yet, 20,235 Form I-526 petitions still pending• Increasing Form I-526 Denial Rates (25.5%)

• 2016 Q2: 845 Form I-829s filed v. 848 Form I-526s filed• Largest # of Form I-829 petitions pending: 4,712•Will EB-5 industry recover in 2016 Q3?

Fiscal Quarter/Year

I-526 Denials I-526 Adjudications

I-526 Denial Rate

Q3 of FY 2015 268 3209 8.4%Q4 of FY 2015 377 2562 14.7%Q1 of FY 2016 372 1629 22.8%Q2 of FY 2016 637 2501 25.5%

2008 2009 2010 2011 2012 2013 2014 2015 2016

15.75%14.12%

10.76%

19.15%20.65% 20.31%

19.18%

10.72%

24.43%

In 2015 Q4: 6,575 I-526 petitions filed, but 14.7% Denial Rate2015 年第四季度： I-526 递件数为 6575 ，拒绝率为 14.7%In 2016 Q1: 6,277 I-526 petitions filed, but 22.8% Denial Rate2016 年第一季度： I-526 递件数为 6277 ，拒绝率为 22.8%In 2016 Q2: 848 I-526 petitions filed, but 25.5% Denial Rate2016 年第二季度： I-526 递件数为 848 ，拒绝率为 25.5%

Fiscal Year 2016 1st & 2nd Quarters

*Based on statistics provided by USCIS on May 25, 2016

I-526 Denial Rates Increases to 25% I-526拒绝率上升到 25%

Annual Allocation of 10,000 EB-5 Visas Include Derivative Beneficiaries = Quota

Backlog 每年分配的 1 万个 EB-5 签证包括附属受益人 = 排期倒退

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

918

2203 2444

3137 2919

Number of EB-5 Visas Issued to Principal Beneficiaries*给主申请人发的 EB-5 签证数

EB-5 Visas to Principal Beneficiaries: 2,919 (33.3%) 主申请人使用的 EB-5 签证数EB-5 Visas to Derivative Beneficiaries: 5,854 (66.7%) 附属申请人使用的签证数

AVERAGE OF 3 EB-5 VISAS PER APPROVED I-526 PETITION平均每个 I-526 申请需要 3 个 EB-5 签证*Based solely on FY 2015 overseas immigrant visa issuance data; does not include AOS

* 仅依靠 2015 年海外颁发的移民签证数据；不包括通过调整身份申请发出的签证数

DOS Visa Bulletin – July 2016 美国移民签证公告版 – 2016 年 7 月

Employment- Based职业类移民All Chargeability Areas Except Those Listed其他国家和地区

CHINA - mainland born中国大陆

5thNon-RegionalCenter(C5 and T5)第五类：非区域中心项目

C有名额 15-FEB-142014 年 2 月 15 日

5thRegionalCenter(I5 and R5)第五类：区域中心项目

C有名额 15-FEB-142014 年 2 月 15 日

Chart A – Final Action Dates (FAD) 表 A – 最终裁定日 （ FAD ）

VISA BULLETIN CUT-OFF DATESVisa Bulletin

MonthEB-5 Chargeability Except

Those ListedEB-5 Chargeability for China - Mainland Born

Waiting Time for Chinese EB-5 Investors (Months)

Oct-14 C C 0Nov-14 C C 0Dec-14 C C 0Jan-15 C C 0Feb-15 C C 0Mar-15 C C 0Apr-15 C C 0May-15 C 1-May-13 24Jun-15 C 1-May-13 25Jul-15 C 1-Sep-13 20

Aug-15 C 1-Sep-13 23Sep-15 C 22-Sep-13 24Oct-15 C 8-Oct-13 24Nov-15 C 22-Nov-13 24Dec-15 C 15-Dec-13 24Jan-16 C 8-Jan-14 24Feb-16 C 15-Jan-14 24Mar-16 C 22-Jan-14 26Apr-16 C 1-Feb-14 26May-16 C 8-Feb-14 26.67June-16 C 15-Feb-14 27.67July-16 C 15-Feb-14 28.54Aug-16 C 22-Feb-14 PROJECTION 29.33

Sep-16 C 1-March-14 PROJECTION (BEST CASE) 30

EB-5 Chinese Backlog in Action EB-5中国排期示例 Example 1: I-526 Petition Priority Date is March 2014示例 1 ： I-526 优先日为 2014 年 3 月Priority Date May Be Current by November 2016 优先日可能在 2016 年 11 月会排期排到Total Estimated Wait: 32 months 预测等待时间： 32 个月 Example 2: I-526 Petition Priority Date is May 2014示例 2 ： I-526 优先日为 2014 年 5 月Priority Date May Be Current by About April 2017 优先日可能在 2017 年 4 月排期排到Total Estimated Wait: 35 months 预测等待时间： 35 个月 Example 3: I-526 Petition Priority Date is October 2014示例 3 ： I-526 优先日为 2014 年 10 月Priority Date May Not Be Current Until Well After August 2017 优先日可能在 2017 年 8 月以后才能排到Total Estimated Wait: Too Far in Future to Estimate With Certainty 预测等待时间：过于久远无法准确预测

• Why is it hard to estimate? Because demand for IVs affected by Form I-526 denials, abandonment, green cards obtained through other categories (e.g. marriage to U.S. citizen), or final visa denials.

• 20,235 Form I-526s pending at USCIS as of end of March 2016 (with average of 3 visas per I-526 application) = about 60,705 potential EB-5 immigrant visas – BUT:

Assume 25% I-526 Denial Rate 45,530 EB-5 IVs Assume 10% abandonment, withdrawals, ineligible, inadmissible Approximately 40,000

EB-5 IVs based solely on current caseload at USCIS• Plus, approximately 20,000 EB-5 IV applicants pending at NVC as of April 2016

Assume 15% IV Denial Rate Approximately 17,000 EB-5 IVs based solely on current caseload at NVC

TOTAL OF 57,000 POTENTIAL EB-5 IVs BASED ON CURRENT CASELOAD AT USCIS AND NVC

TOTAL GUESSTIMATED WAIT APPROXIMATELY 5 ½ YEARS

HOW LONG IS THE EB-5 WAITING LINE FOR CHINESE NATIONALS?

•CSPA protects some children who turn 21 after I-526 petition filed CSPA 儿童年龄保护法案对一些递交I526 申请之后超过 21 岁的儿童进行保护•Allows subtraction of number of days I-526 petition pending from child’s age to determine whether child “aged out” 该法案将 I526 申请等待批准的时间从儿童的年龄中减去• CSPA age calculated at time of visa availability 申请人签证排期到时计算 CSPA 年龄• CSPA requires child to “seek to acquire” green card within one year of visa becoming “available” CSPA 要求儿童在排期排到的一年之内“寻求获取”绿卡

Child Status Protection Act (CSPA) & EB-5

Can a Chinese Minor be EB-5 Principal Investor? POTENTIALLY, NEED TO CONSIDER THE FOLLOWING:

• Under Chinese law, minors able to sign subscription agreements with the consent and co-signature of their parents

• Under U.S. state contract laws, most contracts signed by minors (under the age of 18) are voidable by minor upon reaching age of majority Concern for Regional Centers

• Under EB-5 law/regulations, funds need to be “irrevocably committed” if voidable at child’s option, is it irrevocably committed

• Under EB-5 law/regulations, investors need to “engage in management” Can individual under 18 make policy decisions?

• Will escrow banks accept investment funds from minor investors?

Plan Ahead! 未雨绸缪• Best option is dual intent visa H/L to obtain long term status in U.S. and

file I-485 Adjustment of Status 最佳策略是申请 H 或 L 签证在美国进内等候排期• If child is 15 years old or less, most likely can include child as

derivative beneficiary 15 岁以下的儿童可以作为附属申请人随家长申请• If child is 17 years old, maybe wait until child is 18 to file with child as

primary applicant 17 岁以上的未成年人也许需要等到 18 岁，作为主申请人申请• Get a 10-year B-1 (Temporary Business Visitor), B-2 (Tourist Visa), or a

5-year F-1 (Academic Student) visa 提前获取 10 年旅游或商务访问签证或者 5 年学生签证o President Obama recommended investors be able to obtain visitor visas to

inspect investment 奥巴马提议让投资者获取访问类签证o “Preconceived Immigrant Intent” Issues 入境目的带来的问题

• Explore Nonimmigrant Visas Options First : E-1, E-2, F-1, H-1B, L-1, O-1 其它非移民类签证的可能性 E-1, E-2, F-1, H-1B, L-1, O-1

What Can Chinese EB-5 Investor Do?

How Can Help?

• I-526 and I-829 FILINGS• ASSIST WITH CSPA AGE CALCULATIONS• ASSIST IN PREPARING AND SUBMITTING “CSPA BRIEF” TO U.S. CONSULAR

OFFICE • ASSIST IN DETERMINING WHETHER EB-5 INVESTOR IN U.S. IS ELIGIBLE TO FILE

FORM I-485• TROUBLE WITH REGIONAL CENTER INVESTIGATIONS• FOLLOW-UP INQUIRIES & ESCALATION REQUESTS• WRITS OF MANDAMUS FOR UNREASONABLY LONG ADJUDICATIONS• I-526 DENIAL OPTIONS – MOTIONS TO RECONSIDER, FEDERAL APPEALS• I-551 STAMPS IN PASSPORTS DURING I-829 ADJUDICATION• I-829 DENIAL OPTIONS – IMMIGRATION COURT, FEDERAL APPEALS• ANALYSIS FOR ELIGIBILTY FOR NONIMMIGRANT VISA CATEGORIES: F-1

(STUDENT), H-1B (TEMPORARY WORKER), L-1 (INTRACOMPANY TRANSFEREE), O-1 (EXTRAORDINARY ABILITY), E-2 (TREATY INVESTOR)

Questions?

This presentation does not constitute direct legal advice and is for informational purposes only. The information provided should never replace informed counsel when specific immigration-related guidance is needed.

For follow-up questions:

Please email jbarnett@wolfsdorf.c

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