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March 2, 2012
A blow to the EB-5 immigration investment industry: heavily promoted project in Vermont sees partnership ended, with questions looming
Atlantic Yards Report
To attract immigrant investors under the federal government's EB-5 program, promoters must design projects that:
- provide sufficient job creation (10 jobs, however indirect, per $500,000 investment) to generate green cards for themselves and their families
- be secure enough investments so that the investors, after granting a low- or no-interest loan for five years, get their money back from project promoters.
(With the Atlantic Yards EB-5 investment, promoters have gotten the United States Citizenship and Immigration Services to sign off on job-creation figures that I think bear little relation to reality, while it's way to soon to see if the investors will get their money back.)
A setback for Jay Peak
One project that has proven its bona fides, at least with the job-creation challenge, is the Jay Peak Resort in Vermont, which has garnered much good press as an EB-5 exemplar. Its president, Bill Stenger, has testified at least twice before Congress about EB-5, including before a Senate Committee led by his friend, Sen. Pat Leahy (D-VT).
So it is a serious blow to the EB-5 industry that, as reported by EB5Info.com, the firm that brokered investments in Jay Peak to potential investors has ended "what may have been the longest and most successful agent/broker relationship in EB-5 visa history," with letters to more than 100 immigration attorneys.
...So, what happened? [EB5Info.com's Michael] Gibson can only quote speculation that either Jay Peak is in shaky financial condition or the job creation numbers will not be met.
Posted by eric at March 2, 2012 10:55 AM