A deep-dive investigative report published by Phoenix New Media reporter Chen Xun on December 23, titled "Four Major Deceptions in U.S. Investment Immigration," caused a sensation and had a huge impact on the immigration industry. This report struck a nerve by highlighting the four major deceptions, which are precisely the concentrated manifestations of many current criticisms within the immigration industry.
It is particularly noteworthy that the report mentions how many U.S. investment immigration projects deceive investors by claiming to be government projects. Why is this? Because government projects possess powerful advantages that many other private projects cannot match:
First, High Credibility and Low Default Risk
In U.S. investment immigration, government projects have the U.S. federal government or state government acting as the 100% borrower for the EB-5 investment project. Generally speaking, the credit ratings of U.S. government borrowing agencies are well-documented. The three major international rating agencies typically provide credit assessments for government institutions.
The three major international rating agencies (Standard & Poor's, Moody's, and Fitch) are internationally recognized risk investment rating agencies. They use professional personnel, specialized databases, and professional assessment methods to conduct comprehensive evaluations of the subject's asset status, liabilities, repayment ability, and performance credit. Investors only need to look at the credit rating of the government agency to clearly understand its debt and repayment capacity.
Therefore, government projects naturally possess the inherent advantages of high credibility and low default risk, thanks to the powerful strength and credit of the U.S. government itself.
Second, High Transparency and Comprehensive Supervision
In U.S. investment immigration, government projects are characterized by the government acting as the primary borrower and operator. At the same time, as the borrower, the government agency assumes the legal responsibility for the repayment of principal and interest on EB-5 funds; therefore, the government's borrowing activities are open and transparent.
Government projects are not only subject to supervision by the government's own audit and regulatory bodies but also face political, partisan, legal, ethical, and public opinion oversight from legislatures, opposition parties, and the media. Consequently, the regulatory system for government projects is extremely comprehensive and thorough. Under the comprehensive supervision and control of so many regulatory entities, the risks of default and repayment failure for government borrowing projects are relatively low.
How can one identify if a project is a government project? Generally, a government project should satisfy six conditions simultaneously: government ownership, government investment, government management, government operation, government borrowing, and government repayment. Its essence lies in the U.S. government or a government agency acting as the borrower and assuming the legal responsibility for the repayment of principal and interest on EB-5 funds.
Currently, the Pennsylvania Turnpike project, exclusively represented by Worldway, is a truly 100% government project. The Pennsylvania Turnpike project is an extremely rare EB-5 project jointly invested by the U.S. federal government and the Pennsylvania state government, with borrowing and repayment commitments made by the Pennsylvania Turnpike Commission. It is an EB-5 project that has received I-924 project pre-approval from the U.S. Citizenship and Immigration Services (USCIS) and features 100% government ownership, investment, management, operation, borrowing, and repayment.
Once the first phase of the U.S. investment immigration Pennsylvania Turnpike project was launched, it was snapped up by hundreds of investors in less than two months. Upon the launch of the second phase, it triggered an even more intense frenzy. The reason the Pennsylvania Turnpike project is so highly sought after by numerous investors is primarily because it is a 100% government project, possessing the many advantages inherent to such projects. Currently, true government EB-5 projects in the market are rare and hard to find. Worldway U.S. immigration experts remind you: Choosing a government project that has already been approved by the immigration authorities is the best choice to address the many uncertainties of 2015, such as visa backlogs and potential investment amount increases. Consultation Hotline: 400-138-2929
