TOP CORPORATE AT TORNEYS
ROGELIO J. CARRASQUILLO
CARRASQUILLO LAW GROUP P.C.
Rogelio “Roy” Carrasquillo is
the managing shareholder of
Carrasquillo Law Group P.C.
and chair of its EB-5 immigrant
investor program services and
compliance and securities
practices. Carrasquillo represents public and private clients
using EB-5 as a source of capital, filing for EB-5 regional
center designation, investors evaluating their redeployment
options, and developers seeking to raise EB-5 capital.
He is experienced in public-private partnership projects
using EB-5 funds and other economic and tax incentives.
Carrasquillo is a frequent speaker and writer on EB-5 and
securities law matters. He is a graduate of Georgetown
University and University of Pennsylvania Law School and
is admitted to practice in New York and Puerto Rico.
WHAT TRENDS ARE YOU SEEING
IN THE EB-5 INDUSTRY?
We saw a decrease in the number of projects trying to
incorporate EB-5 financing at the end of 2019. We are now
working with our clients to adapt to the new rules. We are
seeing successful raises using non-traditional structures
with higher investment amounts and higher returns. Projects
are incorporating various sources of funds to their capital
stack, including tax credits, grants and bonds. Investors and
developers are also seeing EB-5 financing as an additional
benefit and not as the sole purpose or financing source of
the projects. We continue to see a focus on alternative
markets such as Latin America, where investors want to be
more involved in the projects and look for a higher return of
investment.
HOW ARE YOU HANDLING
THE ISSUE OF REDEPLOYMENT?
We continue to work with our clients to ensure that their
EB-5 offering documents cover redeployment both from a
securities and an immigration points of view. We try to
reach a balance between protecting the investors, providing
the right disclosures, and providing the developer the
highest level of flexibility in the process of redeployment.
We are also assisting investors who are being faced with the
issue of redeployment as their projects reach maturity to
ensure that their rights are protected during the process and
to avoid unnecessary delays to the return of their investment.
CATHERINE D. HOLMES
JEFFER MANGELS BUTLER & MITCHELL LLP
Catherine D. Holmes is the
chair of JMBM's Investment
Capital Law Group. She
has practiced law at JMBM
for over 35 years, focusing
o n inves tm e n t c api tal and
business transactions. Holmes helps clients worldwide
to raise, invest and manage capital from U.S. and non-U.
S. investors. She has represented more than 100 real
estate developers in obtaining financing through the EB-5
immigrant investor visa program for the development
of hotels, multifamily and mixed - use developments
through the U.S. Holmes has extensive experience in
the hospitalit y industr y. She also handles business
formations, private investment fund offering, business
and regulatory matters.
WHAT TRENDS ARE YOU SEEING IN
THE EB-5 INDUSTRY?
The long waiting periods for EB-5 investors from China and
the increase in the minimum investment amount have
substantially reduced the overall demand for EB-5
investments. The regulatory changes in the requirements
for a targeted employment area have radically reduced the
number of projects that are able to qualify for the lower
minimum investment amount. This does not appear to have
increased the number of projects in rural areas, though
additional time will be required to determine the effect. It
will take at least another 12 months to evaluate the long-
term effect of the new regulations on the EB-5 market.
HOW ARE YOU HANDLING
THE ISSUE OF REDEPLOYMENT?
The safest form of redeployment from the standpoint of
USCIS policy and the expectations of EB-5 investors may
be a redeployment in a project that is substantially similar
to the original EB-5 investment with the same developer as
the original EB-5 investment. Because of the extended
waiting periods for EB-5 investors from mainland China,
some EB-5 investors are electing to withdraw their visa
petitions and absolve their investment of the “at risk”
requirement. Even though an NCE may not be required to
repay those withdrawing EB-5 investors, the NCE should
use proceeds of repayment of their initial investment to
repay the withdrawing EB-5 investors.
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