In 2014, the Pennsylvania Turnpike project, which attracted countless attention in the U.S. investment immigration industry and was eagerly sought after by investors, undoubtedly became the "king" among EB-5 projects. The news events related to Chinese investors involved in the Pennsylvania Turnpike project, including the first visit of U.S. congressmen to China to promote the project, were rated as one of the top ten news events in the immigration industry in 2014. Additionally, the Pennsylvania Turnpike project itself was also rated as a "Quality Immigration Project of 2014."
As we enter 2015, the wave of government projects for U.S. investment immigration sparked by the Pennsylvania Turnpike project is bound to continue to heat up. On March 21 and 22, Worldway Immigration Group, as the exclusive agent for the Pennsylvania Turnpike project, will hold grand official briefings for the project in Shenzhen, Qingdao, and other locations in collaboration with the DVRC Regional Center and the Pennsylvania Turnpike Commission. At that time, Mr. Timothy J. Carson, former Vice Chairman of the Pennsylvania Turnpike Commission, Mr. Richard C. Dreher, Deputy Chief Financial Officer of the Pennsylvania Turnpike Commission, Mr. Joseph P. Manheim, President of the DVRC Regional Center, and Mr. Young Min Ban, Director of the DVRC Regional Center, will be present to provide authoritative introductions to the advantages of the Pennsylvania Turnpike project for investors.
The Government EB-5 Project is Bound to Become Extremely Popular
In the past EB-5 market, the launch of investment immigration projects was primarily driven by small and medium-sized developers in the U.S. facing a lack of funds. However, in recent years, certain U.S. state governments with high credit ratings have begun to use EB-5 financing to raise funds for public infrastructure projects such as roads and bridges. The Pennsylvania Turnpike project is a rare 100% government EB-5 project.
The first phase of the Pennsylvania Turnpike project sold out in just two months, and the second phase saw an even more intense rush for purchases upon its launch. Why are government projects so popular among investors?
The U.S. investment immigration government project is a borrowing entity for EB-5 investment immigration projects, fully backed by the U.S. federal and state governments. Generally speaking, the credit ratings of U.S. government borrowing institutions are well-documented. The Pennsylvania Turnpike project borrows and repays funds from EB-5 investors through the Pennsylvania Turnpike Commission (PTC), which is affiliated with the Pennsylvania government. The Pennsylvania Turnpike Commission has a very high credit rating, with its issued revenue bonds rated highly by the three major international credit rating agencies: Standard & Poor's, Moody's, and Fitch, rated "A+", "A1", and "A+" respectively.
Because the government is both the borrower and the operator in U.S. investment immigration government projects, the government agency, as the borrower, assumes the legal responsibility for repaying the EB-5 funds. Therefore, the government's borrowing behavior is also open and transparent. Government projects are subject not only to audits and regulatory oversight from the government itself but also to political supervision from various sources, including Congress, opposition parties, and the media, as well as legal, ethical, and public opinion oversight. Under the comprehensive supervision of so many regulatory bodies, the risk of default and repayment risk for government borrowing and repayment projects is relatively low.
Proactively Addressing the "Most Difficult Year"
There is a consensus in the industry that 2015 will be the "most difficult year" for U.S. EB-5 investment immigration due to the potential emergence of three major crisis events.
Chinese mainland applicants for EB-5 visas may face a backlog. In 2014, the first instance of the 10,000 EB-5 visa quota being exhausted occurred. Although the new fiscal year's quota has restarted, the U.S. Citizenship and Immigration Services (USCIS) has a backlog of approximately 12,000 applications, which means that without policy changes, the likelihood of an EB-5 backlog in 2015 is very high. A backlog will not only extend the waiting time for green cards but, more importantly, will have a greater impact on investors' overage children.
The investment amount for U.S. EB-5 investment immigration is expected to increase. The U.S. green card is the most valuable in the world, and a minimum investment of $500,000 is incredible. In 2013, the U.S. Senate passed a bill to increase the existing investment amount based on inflation. If this bill is implemented in 2015, even if the investment amount does not increase, it will rise to around $900,000 when accounting for inflation. This will not only increase the capital occupation for investors but also increase investment risks and make it more difficult to organize funding sources.
The extension of the U.S. investment immigration regional center pilot program until September 30, 2015, is also a concern. There have already been three extensions, and this will be the fourth extension by the U.S. President for the pilot program. Before each extension, investors often experience a sense of panic, hastily choosing projects, rushing to make payments, and quickly submitting applications. This not only increases the investment risks for investors but also raises the risk of rejection.
In the uncertain environment of U.S. investment immigration in 2015, investors must prepare early and respond proactively. To ensure a successful application and reduce approval time, currently selecting projects that have already been approved by USCIS or proactively addressing the situation is the best choice. The Pennsylvania Turnpike project has already received pre-approval from USCIS, which means that USCIS has pre-approved the project's reasonableness and legality. When USCIS approves the I-526 conditional green card, as long as the project's legal documents remain unchanged, it is only necessary to focus on the legality of the investor's source of funds, without needing to reassess the project's issues, significantly reducing approval time.
As a high-quality project not to be missed in U.S. investment immigration in 2015, the official launch event for the Pennsylvania Turnpike project will become the most anticipated immigration event this spring. Currently, registration for attendance is in high demand, and the reservation hotline is 400-138-2929.
Shenzhen
Date: March 22, 2015, Sunday, 14:30-17:00
Location: 29th Floor, Lianhua Hall, Four Seasons Hotel Shenzhen (138 Fuhua 3rd Road, Futian District, Shenzhen)
Special Guests: Mr. Richard C. Dreher, Deputy Chief Financial Officer of the Pennsylvania Turnpike Commission, and Mr. Young Min Ban, Director of the DVRC Regional Center.
Beijing
Date: 2015 year3 month21 day, Saturday ,14:30
Location: Four Seasons Hotel Beijing, 3rd Floor, Beijing Hall (Chaoyang District, Beijing, Liangmaqiao Road)
Qingdao
Date: March 22, 2015, Sunday, 14:00
Location: Conference Room 2, 5th Floor, The Westin Qingdao (8 Hong Kong Middle Road, Shinan District, Qingdao)
Special Guests: Mr. Timothy J. Carson, former Vice Chairman of the Pennsylvania Turnpike Commission, and Mr. Joseph P. Manheim, President of the DVRC Regional Center.
