EVOLUTION OF THE EB5 VISA IMMIGRATION ACT

The Immigration Act of 1990

creates Employment-Based
visa program EB-5
Allocates 10,000 visas
annually
Requires foreign nationals to
invest $1 million ($500k in
Targeted Employment areas)
and form a new enterprise that
creates 10 full time jobs
Grants two year conditional
green cards that convert to
permanent status when
investment and Job creation
criteria are met

PBRC (2008): 1st in Florida

USA RCs (2008): 24
USA RCs (2015): 900+

Congress modified EB-5 in 1993

to include a pilot program for
Designated Regional Centers
Allocates 3,000 visas annually
(of 10,000 total)
Same investment
requirements
Permits employment creation
either through jobs generated
directly by the enterprise or
indirectly through the
multiplier effect of DRC
Same Green Card benefits

REGIONAL CENTER REQUIREMENTS

Capital funds must be

derived by lawful means
New enterprise must benefit
the U.S. economy
New enterprise must create
full time employment - 35
hours/week minimum for
each worker
Investor must have a policymaking role in the new
enterprise

Focus on a geographic area

Growth via Export Sales, if
applicable
Promote improved regional
productivity
Create 10 direct or indirect
jobs
Increase Domestic Capital
Investment
Positive impact on
household earnings
Promote, market, publicize
to investors
Generate greater demand
for business services,
maintenance, construction

A Regional Center must:

Administer, oversee and manage the regional center such that
it monitors all investment activities under the centers sponsorship
Maintain records, data and information on a quarterly basis in
order to report it to USCIS upon request year to date for each federal
fiscal year.

Intersection Of Securities Laws And The EB 5 Program

Capital Raising Entity (CRE)

Investor Active in CRE
CRE contracts with Project
Company

The SEC definition of a security is broad and EB-5 investments may include
or may be exempt from the registration requirements under the Securities
Act. Nonetheless, all anti-fraud provisions still remain applicable to even
those exempt offerings.

Minimum Investment $1,000,000

Minimum Investment in a Targeted
Employment Area (TEA) $500,000

TEA: Geographic area with unemployment

rate 150% of the national unemployment
rate.

RC Role: Sponsorship only

Annual filing I-924A

REGIONAL CENTER
Pays rent and
Provides info

sponsors

Does not sponsor

a separate PC

Third party CRE

(may also be PC)

OVERSEAS
INVESTORS

offering

Markets own offering

offering

Marketing Company

Third party PC

May / not be related

(if separated from CRE)

- or -

Markets offering

RC does not itself serve as CRE or PC it only sponsors CRE offering.

RC is not affiliated with CRE or PC trey are 3rd parties to it.
Because of RC sponsorship, the CRE (or CRE/PC) may count indirect job creation.
In return for sponsorship, the CRE pays rent and provides quarterly information to the RC.
Marketing of the EB-5 Offering overseas is conducted by the CRE or by an an independent third-party marketing consultant NOT by the RC.
** Minimal risk to RC. No control by RC **

RC Role: Both Sponsorship and Marketing

REGIONAL CENTER
related
OVERSEAS
INVESTORS

offering

sponsors

Pays rent and

Provides info

CRE is RC affiliated
and controlled

Annual filing I-924A

Including this project

Marketing
fee

Third party PC

NOT RELATED

Receives offering proceeds

uses to execute project

RC is affiliated with and controls the CRE and sponsors the CRE offering.
CRE provides info, pays RC rent (even though affiliated): may count indirect job creation.
PC is a third party to RC and CRE. May pay development fees to RC.
Marketing of the EB-5 Offering overseas is conducted directly/in- by the RC.
In return for marketing the RC is paid a marketing fee by the CRE.

THE EB-5 INVESTOR PROFILE

OPTIMAL TIMELINE FOR

IMMIGRANT INVESTOR

CURRENT TIMELINE FOR

IMMIGRANT INVESTOR

ANTICIPATED OUTCOMES

Notes:
Investor Outcome

acquiring permanent resident status

Government Outcome

access to foreign capital

Project Outcome

access to capital

PBRC Application Approved September 2008

Amendments Approved April, June and July 2010
1. Transportation Facilities and Infrastructure;
2. Warehouse and Cargo Terminals;
3. Biotechnology and Related High Technology
Manufacturing;
4. Solar Panel Manufacturing;
5. Water Treatment Plants;
6. Office Buildings;
7. Hotels;
8. Film and Television Production;
9. Renewable Energy Technologies;
10. Health Care Facilities;

11. Financial Services;

12. Agricultural Activities; and
13. Restaurants.

Applications to allow contiguous counties of a

Regional Center are approved without amendment
pursuant to: USCIS May 30, 2013 Policy Memorandum
and PM-602-0083: EB-5 Adjudications Policy

100% I-526 SUCCESS RATE

CREATING JOBS FOR FLORIDIANS

HOSTED BY PALM BEACH REGIONAL CENTER

USCIS APPROVED

Operating unit in Miami ($10M)

13 operating units located in

Florida and Tennessee 10 new
units being built in South Florida
($10M)

Operating unit in Miami

Real Estate-backed Business
($10M)

Ongoing multi-phased project

Phase I Launched in Broward County
Initial Operating Unit in Construction
($4M)

Ongoing multi-phased project

2 Operating units in Broward County
Phase I Sold Out
Phase II Launched
Phase III Pre-launch
($6.5M to-date)

SERVICE AGREEMENTS SIGNED

SECURITIES SALE DATES TBA

SERVICE AGREEMENT
SIGNING DATES TBA

Mixed Use Commercial Development

and Free Trade Zone
Movie Studio
Community Redevelopment Agency

Safe Haven Regional Center = $100M

The Fountains Continuing Care Campus= $163M
Centreal Terra = $10M

Florida Trend July 1, 2009

PBRC Contracts With Its Service Providers

In the Areas of:
Securities Law
Securities Broker-Dealer
Economic Studies
Immigration Law
EB 5 Business Plans
GIS Mapping

palmbeachregionalcenter.com