A while back Lynda Bell wrote a letter urging the Beacon Council to support Miami's proposal to become a sponsor. Beacon, under former director Nero, was reluctant to become a sponsor for fear of liability to the organization...like this lawsuit.
From EB5 Website:
USCIS approval of an EB-5 Regional Center application does not in any way:
- Constitute USCIS endorsement of the activities of that Regional Center;
- Guarantee compliance with U.S. securities laws; or
- Minimize or eliminate risk to the investor.
Cymbal is in court against the EB5 partner.
The EB5 Program according to the Beacon USCIS:
The Immigrant Investor Program, also known as “EB-5,” was created by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by immigrant investors by creating a new commercial enterprise or investing in a troubled business. There are 10,000 EB-5 immigrant visas available annually. In 1992 and regularly reauthorized since then, 3,000 EB-5 visas are also set aside for investors in Regional Centers designated by USCIS based on proposals for promoting economic growth.More from the Beacon USCIS:
There are two distinct EB-5 pathways for an immigrant investor to gain lawful permanent residence for themselves and their immediate family—the Basic Program and the Regional Center Pilot Program. Both programs require that the immigrant make a capital investment of either $500,000 or $1,000,000 (depending on whether the investment is in a Targeted Employment Area [TEA] or not) in a new commercial enterprise located within the United States. TEA is defined by law as “a rural area or an area that has experienced high unemployment of at least 150 percent of the national average.”
A Regional Center is defined as any economic unit, public or private, which is involved with the promotion of economic growth, improved regional productivity, job creation, and increased domestic capital investment. The organizers of a regional center seeking the regional center designation from USCIS must submit a proposal showing:
- How the regional center plans to focus on a geographical region within the United States, and must explain how the regional center will achieve economic growth within this regional area;
- That the regional center’s business plan can be relied upon as a viable business model stating market conditions, project costs, and activity timelines;
- How in verifiable detail (using economic models in some instances) jobs will be created directly or indirectly through capital investments made in accordance with the regional center’s business plan;
- The amount and source of capital committed to the project and the promotional efforts made and planned for the business project.