EB-5 Placement Agent and SEC Compliance Services
Experienced EB-5 Broker Dealer and Trusted Partner with Strong Track Record
New York, Florida, Shanghai
New Age Ventures offers EB-5 Investors, Regional Centers, Agents, Real Estate Developers and US businesses a broad range of comprehensive customized solutions including project due diligence, project selection, compliance services, and fund raising.
The roadmap to a successful EB-5 Financing is a complicated multistage process that requires superior judgment and coordination of multiple participants across various continents. Our experienced multilingual (Mandarin, Russian and Spanish) banking team will guide you through every stage of the process with dedicated attention from senior management.
New Age Ventures has extensive experience and track record in successfully preparing and executing EB-5 financings.
- Placement Agent Services with creation and maintenance of SEC compliance file and interaction with Regulation D Investors
- EB-5 Advisory & Diligence: full service, one stop shop for EB-5 Financing (organization & execution)
- US, China and global multilingual marketing
- General Partner (GP) Services and project monitoring for Migrant Agents
For EB-5 Regional Centers and China Migration Agents we offer broker dealer SEC Compliance Services and assistance with US offices or US representatives for China Migration Agents. We partner with China Migration Agents and offer General Partner (GP) services for EB-5 Fund administration and project monitoring. For Real Estate Developers or various other US businesses in addition to EB-5 solutions we offer help with customized debt and equity financings utilizing our global network of institutional investors.
New Age Ventures is a full service investment firm registered with the Securities and Exchange Commission (SEC), and a member of both the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), and we are strongly committed to helping our investors to execute their long term plans.
New Rulemaking Brings Significant Changes to EB-5 Program
WASHINGTON—U.S. Citizenship and Immigration Services (USCIS) will publish a final rule on July 24 that makes a number of significant changes to its EB-5 Immigrant Investor Program, marking the first significant revision of the program’s regulations since 1993. The final rule will become effective on Nov. 21, 2019.
New developments under the final rule include:
- Raising the minimum investment amounts;
- Revising the standards for certain targeted employment area (TEA) designations;
- Giving the agency responsibility for directly managing TEA designations;
- Clarifying USCIS procedures for the removal of conditions on permanent residence; and
- Allowing EB-5 petitioners to retain their priority date under certain circumstances.
Under the EB-5 program, individuals are eligible to apply for conditional lawful permanent residence in the United States if they make the necessary investment in a commercial enterprise in the United States and create or, in certain circumstances, preserve 10 permanent full-time jobs for qualified U.S. workers.
“Nearly 30 years ago, Congress created the EB-5 program to benefit U.S. workers, boost the economy, and aid distressed communities by providing an incentive for foreign capital investment in the United States,” said USCIS Acting Director Ken Cuccinelli. “Since its inception, the EB-5 program has drifted away from Congress’s intent. Our reforms increase the investment level to account for inflation over the past three decades and substantially restrict the possibility of gerrymandering to ensure that the reduced investment amount is reserved for rural and high-unemployment areas most in need. This final rule strengthens the EB-5 program by returning it to its Congressional intent.”
Major changes to EB-5 in the final rule include:
- Raising minimum investment amounts: As of the effective date of the final rule, the standard minimum investment level will increase from $1 million to $1.8 million, the first increase since 1990, to account for inflation. The rule also keeps the 50% minimum investment differential between a TEA and a non-TEA, thereby increasing the minimum investment amount in a TEA from $500,000 to $900,000. The final rule also provides that the minimum investment amounts will automatically adjust for inflation every five years.
- TEA designation reforms: The final rule outlines changes to the EB-5 program to address gerrymandering of high-unemployment areas (which means deliberately manipulating the boundaries of an electoral constituency). Gerrymandering of such areas was typically accomplished by combining a series of census tracts to link a prosperous project location to a distressed community to obtain the qualifying average unemployment rate. As of the effective date of the final rule, DHS will eliminate a state’s ability to designate certain geographic and political subdivisions as high-unemployment areas; instead, DHS would make such designations directly based on revised requirements in the regulation limiting the composition of census tract-based TEAs. These revisions will help ensure TEA designations are done fairly and consistently, and more closely adhere to congressional intent to direct investment to areas most in need.
- Clarifying USCIS procedures for removing conditions on permanent residence:The rule revises regulations to make clear that certain derivative family members who are lawful permanent residents must independently file to remove conditions on their permanent residence. The requirement would not apply to those family members who were included in a principal investor’s petition to remove conditions. The rule improves the adjudication process for removing conditions by providing flexibility in interview locations and to adopt the current USCIS process for issuing Green Cards.
- Allowing EB-5 petitioners to keep their priority date:The final rule also offers greater flexibility to immigrant investors who have a previously approved EB-5 immigrant petition. When they need to file a new EB-5 petition, they generally now will be able to retain the priority date of the previously approved petition, subject to certain exceptions.
EB-5 Program Highlights
The Immigrant Investor Pilot Program was created on October 6, 1992 by Congressional mandate aimed at stimulating economic activity and job growth, while allowing eligible aliens to become permanent residents. This program enables a foreign national to obtain permanent residence status more expeditiously than would most other options and it provides much needed investment capital to business and real estate development projects that otherwise lack capital sufficient for completion.
Required minimum investments are:
- General Employment Area – $1,000,000
- Targeted Employment Area (TEA) – $500,000
Targeted Employment Area is an area that, at the time of investment, is a rural area or an area experiencing unemployment of at least 150% of the national average rate. A rural area is any area outside a metropolitan statistical area (as designated by the Office of Management and Budget) or outside the boundary of any city or town having a population of 20,000 or more according to the decennial census.
Source of Investment Funds
The Regional Center
Summary of EB-5 Program Success
Broker-Dealer Participation in EB-5 Financing
New Age Ventures as Placement Agent on EB-5 Transactions
New Age Ventures performs an initial evaluation of the Offering and the management of the Regional Center and Developer prior to accepting the Placement Agent engagement.
We perform a comprehensive analysis of the business viability, financial viability and I-829 viability (job creation and TEA designation) of the offering. We review all documents and material information related to a project. We review the ownership structure, current capitalization, capital and debt requirements, competitive profile, sales and marketing strategy, strategic relationships, management capabilities including background checks, staffing timetables and construction timetables, required licenses and permits, plans for implementing management systems, important vendor relationships and credit terms. We also review the historical financial statements (if they exist), the projected balance sheet and income statement, sources and uses of capital, major agreements and contracts, structure of common or preferred stock if applicable, terms of debt obligations and a review of projected cash flow statements. We review the PPM and all ancillary project offering documents and marketing materials to enhance disclosure of both the highlights and risks associated with the project.
Once preparation is complete we disseminate the project marketing materials and offering documents to our referral resources in the United States and overseas. Once these sources refer potential investors, we evaluate the financial suitability of the investment for the potential investor and help evaluate eligibility for participation in the EB-5 program. New Age Ventures is responsible to ensure the integrity of the investment process, including providing accurate answers to investor questions, ensuring the transfer of funds into escrow and making payments of referral fees, and maintaining records of all investor documentation. This is all done in a manner that is fully compliant with all applicable securities laws.
- I-526, Immigrant Petition by Alien Entrepreneur
- I-485, Application to Register Permanent Residence or Adjust Status
- I-829, Petition by Entrepreneur to Remove Conditions
- I-924, Application For Regional Center Under the Immigrant Investor Pilot Program
- I-924A, Supplement to Form I-924
- Questions and Answers: Form I-924A
General EB-5 Private Placement Risk Factors
Private placements are subject to U.S. securities laws and regulations. EB-5 investments structured as private placements are subject to the regulations because they are private placements. Given the extensive risks and speculative nature of private placements and EB-5 investments specifically, it is important that a person who is considering participating in a private placement that has an EB-5 immigration component understand certain of the common risk factors that may be experienced.
Specific risk factors for a private placement will be stated in its private placement memorandum.
General Financial Risk Factors
- An investor may lose their entire investment including other costs and fees paid
- Investment capital not guaranteed nor does it have rights of redemption
- Investment returns are not guaranteed
- Investment is not transferrable or has limited transferability
- Investment is in an illiquid security
- Investment is generally in a new business enterprise with limited or no operating history
- Investment may be subordinate to other financing arrangements
- Investment might not be secured against an asset or has only limited security
- Investments might not be repaid on time or at all
- An issuer of securities may fail to subscribe a required number of investors
- Fraud or misuse of funds may occur
General Immigration Risk Factors
- An investor may be denied a visa if they provide false or misleading information to USCIS or USDOS
- An investor may be denied a visa if they have certain political affiliations
- An investor may be denied a visa if they have certain medical conditions
- An investor may be denied a visa if they have committed a crime of moral turpitude or other crimes
- An investor may not receive a permanent visa if insufficient jobs are created
- An investor may not receive a permanent visa if their investment is not sustained
- An investor may not receive a permanent visa if a material change to the business plan has occurred
- An investor’s derivative child family member may “age out” and become ineligible for a visa under their investor parent application
For additional information email: EB5@newagecapital.com
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