Category Archives: News

Sep 11, 2017
A New Status Quo in the EB-5 Program By Matt Gordon

DHS has published a date of final action of April 2018 on its proposed amendments to existing EB-5 rules (see https://www.reginfo.gov/public/do/eA…&RIN=1615-AC07 ). The most notable change is increasing minimum investment amounts to $1.3 million for TEA based projects and $1.8 million for non-TEA based projects. The second significant change would be removing the power from the states to determine the contours of a TEA, which would presumably limit the gerrymandering that has plagued the program to date.

This may be just another line in the sand, but it may be one that sticks. The Regional Center program authorization is due to expire on September 30 th. President Trump seems to have crafted a cross-party deal to extend the budget (which includes the Regional Center Program) until December 8th. From November 1st until December 7 th there is a real window of opportunity to get EB-5 reform done. Most of the industry seems in agreement that minimum investment amounts will go up to around $800,000 for TEA based investments and $950,000 to $1 million for non-TEA investments. There is also agreement on having allocations of visas for certain types of investments, such as infrastructure, rural and distressed urban (true TEA). The last sticking point may be how much wiggle room to allow in the number of census tracts allowed to create a TEA.

What’s different this time about the pending negotiations is the shifted status quo. For the last few years, the predominant industry players have had no incentive to compromise as the never ending short-term extensions were simply a perpetuation of the status quo of existing rules that favored them greatly. With the new rules coming, and nothing they can do to stop it, the entire negotiating posture must change. If not, most large Regional Center based project will find that new investors are all but priced out of the market, with more than a 300% increase in cost. That, plus the retrogression issues in China, will surely take away the life’s blood of investor volumes feeding these projects. So maybe, this time, common sense will replace the brinksmanship and the long needed reform measures will pass.

Until then, it may be a very good time for investors sitting on the sidelines to pick their projects and get their source of funds documents ready for filing by the first week of December as this time, change may finally be coming.

Originally posted at ILW.COM

Jul 31, 2013
E3 Investment Group Secures First Scalable-Direct™ EB-5 Investor

(New York, NY) July 31, 2013 – E3 Investment Group, headquartered in New York, announced today that it signed its first investor in its Scalable-Direct™ EB-5 investment business model.  The Scalable-Direct™ model may be the first of its kind to allow foreign nationals who invest their capital as part of the United States government’s EB-5 immigrant investor visa program to receive the benefits of an enterprise class organization, while each remaining independent from all other investors by being the only investor in its entity. This is designed to allow the investor to receive permanent residency in the United States, while using their capital to create jobs in high unemployment areas for US citizens and permanent residents.

According to Matt Gordon, Managing Director of E3 Investment Group, “The Scalable-Direct™ business model is simple. Each investor invests the required $500,000 in its own entity. The money buys the operating assets and hires ten or more employees.  That satisfies the U.S. Government EB-5 program requirements.  We manage all the entities together to provide economies of scale and high quality management to reduce the risk.  Unlike other models, different investors’ assets and employment creation are never mixed.”

“Now that we have completed this critical milestone, we look forward to continuing to build out our program and help many of the world’s best, brightest and most entrepreneurial citizens accomplish their goal of helping build America and living the American dream.”