Welcome to EB5 Investment Voice with Mona Shah and Mark Deal

EB5 Investment Voice, hosted by Mona Shaw and co-hosted by Mark Deal, delves into the intricacies of the EB5 program, focusing on immigration investments. The podcast aims to clarify misconceptions and provide insights into areas often overlooked. Featuring attorneys Rebecca Singh and Omar Hakim, the show discusses the evolution of the EB5 program, legislative changes, and challenges such as source of funds, SEC compliance, and retrogression issues. The hosts emphasize the program's role in economic development and aim to educate investors, developers, and policymakers on navigating the EB5 landscape effectively.

• The podcast is hosted by Mark Deal and Mona Shaw, featuring attorneys from Mona Shaw and Associates and immigration leaders globally.
• The aim is to provide insights into the EB5 program for foreign investors, domestic fund managers, and entrepreneurs.
• The podcast will address common questions and misconceptions about the EB5 program.

"Welcome to EB5 Investment Voice, where Attorney Insights intersects with immigration investments."

• The podcast is designed to intersect legal insights with investment opportunities in the EB5 program.

• The podcast aims to set the record straight on existing EB5 material and explore new areas not previously discussed.
• It will address questions from clients and discuss various projects, providing a unique perspective from practicing immigration and corporate attorneys.
• The podcast intends to rectify misconceptions and inaccuracies in the EB5 field.

"We really want to go and set the record straight on some areas and really talk about new areas where people haven't gone before."

• The podcast seeks to clarify and expand on areas of the EB5 program that are often misunderstood or unexplored.

• Mona Shaw has been involved with EB5 since its inception, with experience dating back to the late 90s and early 2000s.
• EB5 in its current form took off around 2005, and Shaw has witnessed its evolution over the years.
• The podcast is based on her extensive experience and the collective experience of her firm.

"I've been actually involved with EB5 from the very reception of the way you see it now."

• Mona Shaw's long-standing involvement with EB5 provides a foundation of expertise for the podcast.

• The podcast is grounded in practical experience, addressing real questions and scenarios encountered by the hosts and their firm.
• It targets investors, developers, and legislative bodies, offering insights relevant to each group.
• The podcast aims to deliver practical, no-nonsense advice and discussions.

"We pride ourselves in being practical. We are very much in your face attorneys in the sense that we will tell a client or an investor that you don't have a case or we don't mince words."

• The podcast's practical approach ensures that listeners receive honest and direct insights.

• Omar Hakim handles corporate security matters related to EB5, ensuring investments are structured to meet immigration requirements.
• His role involves preparing documentation like operating agreements and business plans, crucial for securing green cards through EB5 investments.
• The podcast will feature his expertise to address corporate and securities issues within EB5 projects.

"I handle all the corporate security matters and the way size in the EB5 is that in order to get the green car they must make an investment."

• Omar Hakim's expertise in corporate securities is essential for navigating the investment aspects of EB5.

• The firm engages in co-counseling and troubleshooting for attorneys and regional centers, addressing corporate-related issues in EB5 cases.
• They have encountered numerous problematic cases, emphasizing the importance of correctly drafted operating agreements.
• The podcast will discuss these practical challenges and solutions.

"We've seen a lot of problematic cases and we have seen a huge amount of cases come up over the last couple of years which are corporate related."

• The podcast will explore real-world challenges and solutions in EB5 investments, particularly in corporate structuring.

• The podcast series will consist of over a dozen episodes, each based on the hosts' extensive experience and real-world scenarios.
• It aims to provide valuable insights and information to anyone interested in the EB5 program, from investors to legal practitioners.
• Future episodes will continue to draw on the expertise of the hosts and their firm, offering a comprehensive look at EB5.

"I'm looking at an episode list of over a dozen episodes that we plan to deliver to the person listening right now."

• The podcast promises a series of episodes rich in content and expertise, designed to educate and inform listeners about EB5.

• Investors seeking green cards through EB5 investments must navigate complex documentation and ensure proper structuring to secure both their green card and investment return.
• The role of immigration attorneys is crucial in guiding investors and project developers through the intricate EB5 process.

"Just because the investor is investing for their green card doesn't mean they don't have to navigate all the issues."

• This quote highlights the necessity for investors to engage with the complexities of the EB5 process beyond just the financial investment.

"I deal a lot with the investors, as Mona had mentioned, and that not only the investors, but we work with the project developers as well."

• The dual role of immigration attorneys in assisting both investors and developers is emphasized here, showcasing their pivotal role in the EB5 process.

• Immigration attorneys like Rebecca Singh are instrumental in handling immigration petitions and project documents, often serving as the main point of contact for clients.
• They face challenges in explaining complex EB5 requirements to developers and ensuring compliance with regulations.

"She is somebody also who the clients love to speak to. So she's often the person who will come and say, well, yes, I remember that client."

• This underscores Rebecca's role as a trusted advisor and her ability to personalize client interactions.

"It's very difficult to use it working with in house people when you're dealing with EB5."

• The difficulty of working with in-house teams unfamiliar with EB5 intricacies is highlighted, stressing the need for specialized legal expertise.

• The year 2015 was marked by significant legislative activities and reforms in the EB5 program, with deadlines and extensions impacting stakeholders.
• Key areas of focus included source of funds, integrity measures, and compliance with USCIS guidelines.

"2015 was, everybody will say it, the most unique year ever. As in EB5 history was so active all the way through."

• This quote captures the unprecedented level of activity and change in the EB5 landscape during 2015.

"There's a number of reforms which are needed in EB5."

• The ongoing need for reforms and the complexities they introduce to the EB5 program are acknowledged here.

• USCIS introduced measures such as random site visits and stricter marketing regulations for regional centers.
• The integrity bill, although not passed, proposed funding for annual site visits and stricter oversight.

"USCIS does have the funding to do random site visits, which they are doing this year."

• This indicates USCIS's proactive steps in ensuring compliance and integrity within the EB5 program.

"They clamped down on our regional centers' use of names."

• USCIS's efforts to prevent misleading marketing practices by regional centers are highlighted here.

• The SEC prosecuted immigration lawyers for broker-dealer violations, highlighting the legal risks associated with improper financial incentives.
• Lawyers must ensure transparency and ethical practices when advising clients on EB5 projects.

"The prosecution of a bunch of immigration lawyers for broker dealer violations."

• This quote underscores the legal consequences faced by attorneys who fail to adhere to ethical standards in EB5 transactions.

"We often question attorneys like that as to whether they really understood the nature of the project."

• The importance of due diligence and understanding project specifics is emphasized for attorneys advising on EB5 investments.

• USCIS has become more stringent with the requirement for loans to have collateral; previously, loans without collateral were accepted.
• There is a shift towards requiring loans from third-party institutions rather than from family members.
• The draft bills propose stricter regulations on gifts, limiting them to immediate family instead of friends.

"So they really want to see collateral against each loan."

• This quote highlights the new requirement for loans to have collateral, reflecting a change in USCIS policy.

"They're thinking of even becoming stricter on that and where they're going to hope to have loans coming from third party institutions."

• This indicates a move towards requiring loans to originate from banks or similar institutions, not from personal relations.

"For gifts, a lot of our investors have, they received their funds from gifts as well. But they're going to make that a lot stricter as well in the fact that they're going to limit that to immediate families instead of just friends."

• This quote underscores the tightening of rules regarding the source of gifted funds, focusing on immediate family.

• There is increased oversight on EB5 processes, including regional center names, fund sources, and attorney compensation.
• Retrogression issues primarily affect investors from mainland China, not including Taiwan, Macau, or Hong Kong.
• The Department of State introduced a second chart in the visa bulletin to help mainland China applicants with children aging out.

"There's more EB5 oversight than perhaps in previous years."

• This reflects the heightened scrutiny and regulation of EB5 processes compared to past years.

"It's important to note that this is just affecting mainland China at this time."

• This clarifies that retrogression issues are specific to mainland China, not affecting other regions.

"The Department of State did last year in October with the visa bulletin is that they edited a second chart."

• This describes the introduction of a new mechanism to assist certain applicants from mainland China.

• There is no required timeline for maintaining a job position once it is created for EB5 purposes.
• Confusion exists around job creation requirements, which are addressed in a draft policy memo by USCIS.
• The memo clarifies that a permanent position does not need to be kept open indefinitely while waiting for a visa number.

"A job, once it's been created, once a permanent position has been created, then that's fine."

• This indicates that once a job is created, it fulfills the requirement without needing to be maintained for a specific duration.

"There is no timeline. There isn't. You don't have to keep that job open for as long as you are waiting for your visa number to come through."

• This quote emphasizes the lack of a required timeline for job maintenance after creation.

• The podcast aims to educate investors, project developers, immigration attorneys, and policymakers about EB5.
• EB5 is increasingly recognized as alternative financing, particularly in real estate projects in cities like New York.
• The podcast format allows for more open discussions that might not be possible in writing.

"We want to speak directly to investors, things that they should be aware of or perhaps look out for."

• This highlights the podcast's goal to inform investors about important considerations in the EB5 process.

"EB5 is being cited everywhere now as alternative financing."

• This underscores the growing popularity and recognition of EB5 as a financing option.

"Podcasts bring a different dimension to everything because some of the people that we have coming on to the show, they may not want to say what they're saying to us in a podcast and they may not want us to put that down in writing."

• This quote illustrates the unique advantage of podcasts in facilitating candid discussions.

• EB5 is a program that facilitates foreign investment in U.S. projects, offering residency status and potential citizenship.
• It has attracted close to $9 billion in investments, creating numerous jobs across various industries.
• The program is crucial for individuals who might not otherwise have an opportunity to immigrate to the U.S.

"Close to $9 billion has been invested in EB5, creating thousands and thousands of jobs."

• Highlights the significant economic impact and job creation facilitated by the EB5 program.

"EB5 is a wonderful program and very necessary for a lot of people who would not be able to come to this country but for something like EB5."

• Emphasizes the program's importance for providing immigration opportunities to foreign investors.

• Marketing is essential in attracting investors to EB5 projects.
• Developers must understand marketing strategies to effectively utilize the EB5 program.

"Really the essential element of EB5 is getting the investor to come into your project, and that is marketing."

• Stresses the critical role of marketing in the success of EB5 projects.

• EB5 gained popularity during the recession when traditional lending sources froze.
• It provided an alternative funding source, keeping economic activities alive.

"Savvy developers...were able to keep a lot of economic activity going when the banks weren't willing to step in and help them."

• Illustrates how EB5 served as a financial lifeline during economic downturns.

• The program faces potential legislative changes and deadlines, with a focus on integrity and transparency.
• There is a push for reform to address issues such as visa number limits and control by foreign agents.

"We foresee that there will be a mass filing again sometime this year, which isn't great for retrogression."

• Predicts challenges related to visa backlogs and the need for timely reform.

"There is an Integrity Bill out there now...focusing on making the program more transparent."

• Indicates legislative efforts to enhance the program's integrity and investor awareness.

• Discussion on increasing visa numbers through various methods, such as reshuffling unused visas.
• Expansion is contingent on implementing integrity measures.

"There are measures out there...to try and increase the existing numbers by reshuffling them."

• Describes potential strategies for increasing visa availability.

• Aims to provide comprehensive education on EB5 through expert insights.
• Targets a broad audience including investors, attorneys, developers, and policymakers.

"We are really aiming for a broader understanding of EB5, an education in a way that we can give by choosing the right people to cover for the right topics."

• Outlines the podcast's educational mission to enhance understanding of the EB5 program.

"We just really want to make sure that our listeners are educated on the EB5 topic."

• Reinforces the goal of educating listeners to foster informed participation in the EB5 process.