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This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer. Please contact me at Jim Butler at jbutler@jmbm.com or 310.201.3526.

Published on:

08 February 2016

Hotel Lawyer in Los Angeles at the latest EB-5 Summit

If you have been thinking about tapping into EB-5 financing for your development project, this is the time to make your decision and act quickly. If you need background on what the EB-5 program is about, how it has gone mainstream with institutional investors for several years, and is now providing a steady stream of reliable capital, please see the articles referenced at the bottom.

We think that JMBM’s Global Hospitality Group® EB-5 financing team has a pretty good perspective on the opportunity, the risks, and how to get clean execution. For the 18 months ended December 31, 2015, our team closed more than $1 billion of EB-5 financing loans, and we sourced more than $700 million of these loans for our clients.

If you have missed our reporting of key events affecting the availability of EB-5 financing here, you need to know that the EB-5 program was extended for another year through September 30, 2016 without any changes. But just as the maximum number of visas has been reached in each of the past two years, the experts expect that we will “cap out” at the maximum 10,000 visas even earlier in 2016 – possibly as early as May or June.

And the “reformers” are still out there, with proposals to revise the EB-5 program the next time it comes up for renewal. So this is a great time to move into action while EB-5 financing continues to be accessible for top developers with great projects and a strong track record.

We are confident that most people who delay will wish they had started earlier and gotten in on this great source of relatively inexpensive financing early in the game.

The NES Financial EB-5 Innovation Summit 2016 – Los Angeles, California

NES Financial is one of the top providers of administrative services for EB-5 financing. They focus on escrows and other technology-enabled services for the efficient administration of EB-5 financial transactions, 1031 exchanges and fund administration. See www.nesfinancial.com.

JMBM’s EB-5 financing team attended an NES-sponsored “Summit” in Los Angeles on February 4 at the Los Angeles City Club, and it was a great program. I particularly enjoyed the “State of the Industry” presentation by Reid Thomas, Executive Vice President of NES Financial.

Here are a few highlights and slides from Reid’s presentation, presented here with permission.

Some highlights on the state of EB-5 financings

Continued expansion of regional centers. There are now almost 800 regional centers in the United States offering to raise EB-5 capital for developers. We continue to believe that less than 10% of the regional centers have raised almost all of the EB-5 capital to date. This makes it critical that developer select the “right” regional center or the developer may spend a lot of time and money with very poor results.

Where the EB-5 projects are located. It is no surprise that most of the EB-5 activity is in California, New York, Texas and Florida. In California, Southern California dominates the picture. That said, one of our closings in December for $40 million EB-5 financing was in Nebraska. So the right developer with a great project and proper guidance can find success even outside Los Angeles or New York!

The following slide shows project activity by state in 2015.

5b

Who is raising the capital — concentration on the most active developers.  The 80-20 rule applies to EB-5 financings. 20% of the projects raise 80% of the capital and 80% of the projects raise only 20% of the capital. The 80-20 rule seems to apply to almost everything in life, and EB-5 financing is no exception.

The average EB-5 capital raise for 2015 is $50 million.

What sectors have the most EB-5 projects? (number of projects, not amount of capital)

The following slide shows the breakdown of EB-5 financing by number of projects in each industry sector. Notice that the top five sectors are:

  1. Resorts, casinos, hotels
  2. Multifamily
  3. Mixed-use/office
  4. Medical/health care
  5. Retail/restaurant

The fastest growing segment of projects in 2015 was multifamily. Multifamily went from the number 5 referred sector in 2014 to the number 2 preferred sector in 2015, in terms of projects by industry sector.

6a

What sectors raise the most EB-5 capital?  (total dollars of capital)

In general, the amount of EB-5 capital raised roughly parallels the industry sector projects, but there are significant differences. The following slide shows the distribution of the EB-5 capital actually raised by industry sector.

Note that, in terms of capital raised, public works greatly exceeded retail/restaurant. Again, the growth in EB-5 financing for multifamily was explosive! In terms of capital raised, multifamily barely registered on the scale in 2014, but almost equaled the other top two leaders in 2015. This is an amazing growth.

6b

What is the size of projects and the amount of EB-5 capital raised?

We specialize in assisting clients raising at least $20 million of EB-5 capital. Although there are a few exceptions, most of our sources are not very interested in raising less than that, unless it is part of a series or a template that can be repeated. Even then, the “sweet spot” that we know for EB-5 capital is substantially above $20 million.

However, it is noteworthy that NES Financial’s data shows that in 2015 almost half of the projects (by number) involved an EB-5 capital raise of less than $20 million. However, in terms of dollars raised, more than 90% involved the capital raise of $20 million or more, and more than 50% of the projects involved $100 million or more. 22% of the projects involved $500 million or more.

In historical trends, note that the target raise for EB-5 financing in 2011 was approximately $23 million. In 2014 it was more than $52 million, and in 2015 it was $47 million. This is the data that produces the average EB-5 capital raise of $50 million at the current time.

7b

Other observations — where is/will EB-5 capital come from.

EB-5 debt continues to dominate. The sweet spot for EB-5 financing is mezzanine debt that will cost 6 or 7% per annum as an all-in cost to the developer/borrower on a 5 to 7 year term. Some experts expected that EB-5 would be used more in an equity position, but that has not developed.

China continues to be the dominant source of funds for EB-5 financings. The drop to 2nd place is so significant that it is difficult to imagine. However, Latin America is coming on as an EB-5 investment source as well as the Middle East and Gulf regions. It will be interesting to see if investors from other countries have different expectations on returns than those from the traditional Chinese investor.

However, there is a clear trend toward geographical diversification and there may be some changes. Although Columbia, Venezuela and Brazil have experienced explosions in EB-5 capital raise as high as 1400%, they still pale compared to China. However, these 3 countries have finally eclipsed Korea in terms of EB-5 capital, and Korea has historically been the number 2 source of funding for EB-5 financing.

Why you want to start raising your EB-5 capital NOW . . .

With the EB-5 program extended for another year (through September 30, 2016) without a single change in the rules, we are advising our developer clients to proceed with all due haste in pursuing their EB-5 financing. On this timing issue, our thinking is very simple:

There has been something of a hiatus or gap in EB-5 financings as developers and lenders waited to see if Congress would change the law on essential details that affect how (or even whether) a project can be structured for EB-5 — matters such as the minimum investment, how or whether one could qualify as a TEA, how the minimum new jobs requirement would be calculated, and other important business and legal details.

Now, as the program has been renewed without a single change, lenders and foreign investors are rushing to fill the pipeline again. And it is much more desirable to be at the front of the line, rather than at the back of the line.

As of December 31, 2015, JMBM’s team has closed more than $1 billion of EB-5 loans, and sourced more than $700 million of EB-5 funding for our developer clients. Please give us a call if you would like to see if we can help you.

Other articles on EB-5 Financing

To access our rich library of articles on EB-5 financing, go to www.HotelLawyer.com, scroll down the right-hand side under LEARN MORE ABOUT and click on “EB-5 Financing.” For your convenience, here are a few popular EB-5 articles that may be of interest:

EB-5 Immigrant Visa program extension signed into law — without any changes. EB-5 financing continues for new development projects.

JMBM has sourced more than $700 million of EB-5 financing for new development projects

Hotel Financing 2015: JMBM’s “preferred” EB-5 construction financing program for top developers and projects.

FAQs about EB-5 project financing for new hotel development

Hotel development & EB-5 financing: Why you don’t want to form your own regional center

Hotel development financing: How to win the race for EB-5 capital

Financing hotel development today: The 5 questions every hotel developer is asking about EB-5 financing

Hotel Lawyer to Developers: Looking for EB-5 Financing? The China “Retrogression” means you should act sooner than later!

Jim Butler is a founding partner of JMBM, and the founder and chairman of JMBM’s Global Hospitality Group® and Chinese Investment Group™. He is recognized as one of the top hotel lawyers in the world and has authored or co-authored The HMA & Franchise Agreement Handbook, How to Buy a Hotel Handbook, and The Lenders Handbook. Jim has led the Global Hospitality Group® in more than $71 billion of hotel transactional experience, involving more than 3,800 hotel properties located around the globe. 310.201-3526 or jbutler@jmbm.com

This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer, signing off. Why don’t you give us a call (or send an email) and let us know what you working on? We would like to see if our experience might help you create value or avoid unnecessary pitfalls. Who’s your hotel lawyer?

 

Published on:

27 January 2016

Hotel Lawyers with first signs of a sea change in investor sentiment about the hotel sector

As our team of hotel lawyers returns from the Americas Lodging Investment Summit (or ALIS) in Los Angeles, we all noticed a big change. This is the first industry conference since the beginning of the recovery from the Great Recession where we have seen a clear turnaround in hotel investor sentiment that seems to be gaining traction. Unfortunately it is a negative turnaround.

Until now, the discussions have always been about how long the recovery will last (what inning are we in)? And how high values and fundamentals will go before they peak and start down in the next cycle. Not so much this time.

The irony is that hotel industry fundamentals remain sound and continue to improve, although perhaps a bit more slowly. But the downturn in the price of hotel REIT and C-corp stocks (many are about half of their value a year ago) now seems to be shaping an important part of the industry psyche and investment mindset. In this scenario, Wall Street is driving Main Street, instead of the other way around. In other words, the jaundiced perspective of Wall Street is having a real world effect on the hotel industry.

What is happening on Wall Street?

Here is how it works according to one industry analyst:

  • Wall Street investors became infatuated with hotel REITs and stocks because of record growth rate in RevPAR and other indicators as the industry recovered from the Great Recession.
  • For decades, an annual RevPAR growth rate of 5% or 6% was remarkable, perhaps record-setting.
  • For several years in a row, hotel RevPAR growth in many markets has equaled or exceeded the 5% or 6% records, and Wall Street loved it.
  • Now, that we are back to peak levels (or near there in most markets), growth rates are slowing a bit. And the prospect of a “mere” 4% RevPAR growth rate is freaking out Wall Street investors . . . or at least making them think that they should direct their attention elsewhere where growth rates are more robust.

CONTINUE READING →

Published on:

11 January 2016

What part do hotel owners play in preventing a cyberattack and the resulting data breach? The hospitality industry relies on its reputation for confidence, and that confidence can be shattered when guests learn that their private information has been compromised. What can hotel owners do and how should they work with brands and management to prevent a cyberattack?

In the article below, my partner, Bob Braun reminds hotel owners that because they are generally required to indemnify brands and managers for costs the managers and brands incur – which could include a costly data breach – it is in the owners’ best interests to have a comprehensive plan in place.  This article first appeared in Hotel Business Review in December 2015, and is reprinted with permission from www.hotelexecutive.com.

Not Just Heads in Beds – Cybersecurity for Hotel Owners

by
Bob Braun, Hotel Lawyer and Data Security Advisor

The basics of the hotel business have traditionally been simple: good location, fair prices, appropriate amenities and good service were the keys to success. While those factors are important today, hotels are no longer simply a “heads in beds” business; hotels are increasingly brand-oriented. Brands focus not only on the services and products they sell, but on developing the perception and recognition of the brand associated with those goods and services. That means that hotels, like all brands, need to focus more and more on understanding their customers and how to reach them, whether through loyalty programs, advertising, social media or otherwise.

The upshot of the focus on branding in the hospitality business is that hotels gather lots of information about their guests, ranging from credit card data to addresses, phone numbers, travel plans and preferences, birthdays, and more – all of which are valuable not just to the hotel brands and operators, but to cyberthieves. While hotel companies have understood this for years, they are, along with other customer-intensive industries, learning that collecting that information comes with responsibilities and, possibly, liability.

Cybercrime is big business. In 2014, there were 42.8 million detected security incidents (and, most likely, many more that were never discovered). Estimates of annual cost of cybercrime to the global economy ranges from $375 billion to as much as $575 billion as companies face increased vulnerability, ranging from greater technology available to cybercriminals and new types of cybercrime, like crypto-ransom. Cybercriminals began targeting hotels years ago. In a 2010, a Forbes magazine article quoted Nicholas Percoco, who said that “The hospitality industry was the flavor of the year for cybercrime. These companies have a lot of data, there are easy ways in and the intrusions can take a very long time to detect.” The lesson for hotel owners is that they cannot stand idly by – hotel owners must be proactive by instituting best practices in their own operations, requiring the same from managers, and obtaining insurance coverage to fund the inevitable costs of a breach.

The Wyndham Case

The threat to the hospitality industry became particularly evident in the recent federal court case brought by the Federal Trade Commission (the FTC) against Wyndham Hotels. On August 24, 2015, the Third Circuit United States Court of Appeals issued its ruling in the case FTC v. Wyndham Worldwide Corporation. The case was highly anticipated by the data security community generally for its expected ruling on the authority of the Federal Trade Commission to regulate data security standards, but nowhere was the anticipation more keen than in the hospitality industry. After all, this decision didn’t deal with retailers, banks or dating sites – it addressed a major hotel player and, by implication, all operators, brands and owners in the industry. The decision should be a wake-up call to hotel owners because, as described below, hotel owners may ultimately bear the cost of data breaches involving their hotels. Owners should look at the Wyndham decision as an opportunity to consider whether their brands and managers have taken the steps necessary to protect guests and, ultimately, the hotel owner.

CONTINUE READING →

Published on:

18 December 2015

Hotel lawyer with great news for developers: the EB-5 immigrant visa financing program has been renewed — approved by Congress and signed by the President. It is being continued without change through September 30, 2016.

As of December 31, 2015, JMBM’s team has closed more than $1 billion of EB-5 loans, and sourced more than $700 million of EB-5 funding for our developer clients.

A funny thing happened on the way to the 2016 Federal budget approval last week. One of the “riders” to the omnibus appropriations bill was the EB-5 legislation sponsored by Senators Leahy and Grassley. For months preceding the scheduled Congressional action, many stakeholders in the EB-5 industry spent untold hours in negotiating complex provisions to deal with certain concerns regarding the program. These negotiations resulted in multiple drafts of the proposed legislation being exchanged between Congressional staff and industry leaders, with the “final” draft receiving the unanimous approval of the trade organization for regional centers, the Invest in the USA or IIUSA. It was a good compromise on many knotty issues.

Then at the proverbial 11th hour . . . on Wednesday, December 16, the elaborate “final” compromise proposal was jettisoned in favor of a simple extension of the expiration date for the Regional Center program to September 30, 2016, without any other changes to the program.

The EB-5 regional center program is extended without any other changes.

Yes. That is right. After all the discussions and proposals, THE ONLY CHANGE IN THE LAW IS AN EXTENSION OF THE EFFECTIVE DATE FOR THE PROGRAM THROUGH NEXT YEAR.

Now, as the program has been renewed without a single change, lenders and foreign investors are now rushing to fill the pipeline again. And it is much more desirable to be at the front of the line, rather than at the back of the line.

Nothing was done about any other issues, including the following: CONTINUE READING →

Published on:

08 December 2015

Editor’s note: The EB-5 program has been renewed! The article below describes the changes to the EB-5 Immigrant Investor Visa program that were ALMOST enacted in December 2015. At the eleventh hour, Congress completely shelved all the proposals discussed below, and instead decided to continue the program, without any change, through September 15, 2016. 

For the current status of the EB-5 financing program, see “EB-5 Immigrant Visa program extension signed into law — without any changes. EB-5 financing continues for new development projects.

Hotel Lawyer preview of the new EB-5 financing rules.

Although minor tweaks and adjustments continue to be made to legislation in the final hours before Congress votes, it looks like we have a pretty good idea of what the new rules will be for EB-5 financing. Top takeaways for developers are:

  • The EB-5 regional center program will be extended for 5 years
  • Developers will be able to raise 60% more EB-5 capital on the same number of jobs
  • Minimum investment will be raised to $800,000 (not expected to deter investors)
  • TEAs will be forced into a “modified California model” of not more than 12 contiguous tracts
  • NOW is a good time to get started on EB-5 financing before the New Year rush
  • There will be much greater scrutiny and compliance required of those in the capital raising process, and there may be a trickle-down effect on developers (unless they want to form and use their own regional center)

Read on for more details. CONTINUE READING →

Published on:

23 November 2015

As the biggest merger in the history of the hospitality industry,  the Marriott-Starwood merger, is grabbing headlines worldwide. Most of the recent press has focused on the sheer size of the potential transaction. But in his article below, my partner and hotel lawyer Bob Braun, considers the practical impact of the merger on hotel owners, franchisees and developers. With the loss of the Starwood family of brands as an independent and significant competitive force in the industry, the merger will bring mixed blessings to stakeholders.

 

The Marriott-Starwood merger – Is bigger really better?

Impact of the merger on hotel owners, franchisees and developers

by
Robert E. Braun | Hotel Lawyer

The proposed merger between Marriott and Starwood will, by all accounts, create a behemoth in the hotel industry. If the merger goes through as planned, the combined company will be the world’s largest hotel company, with more than 5,500 hotels under management or franchise, 1.1 million hotel rooms around the world, 30 hotel brands and up to 75 million hotel loyalty members.

While commentators have speculated as to whether the combined entity will benefit consumers, stockholders or frequent guests, little has been said about how it could impact hotel owners, franchisees and developers currently in either of the brand families or looking to them in the future. No one will really know until after the merger (if it is, in fact consummated, and there are a variety of hurdles to closing such a complex transaction), but the JMBM Global Hospitality Group has negotiated many hundreds of franchise agreements, including agreements with virtually every major hotel brand, and we believe hotel owners should consider a few important factors:

Will Owners Have Fewer Choices? The first, and most obvious, impact on any potential owner is that the field has been reduced by a significant player. Thirty brands (31, if we include the new Grand Sheraton brand) may remain, but in fact they will be operated by a single entity, and that entity will decide on what brands will be available in a given market. Moreover, the differences between particular brands in a given price or quality segment are likely to be reduced. How long, for example, will Sheraton or Le Meridien hotels be markedly different from Marriott or Renaissance properties? Where will they be positioned relative to other brands in the new combined family?

Any hotel owner, franchisee or investor should also recognize that the Marriott-Starwood merger might only be the first of its kind. Many analysts predict that other brands will merge to create the size and influence that will allow them better to compete with the largest hotel branding company in the world. If that happens – and transactions like this seem to occur in bunches – owners will have even fewer choices.

Will Owners Have Reduced Leverage? The immediate corollary to fewer choices is reduced leverage. A hotel owner will no longer be able to create a competition between two of the largest players in the business; Marriott/Starwood is unlikely to bid against itself for management or franchise opportunities.

This challenge is likely to extend beyond just the merger of Marriott and Starwood. Other major brands – Intercontinental Hotel Group, Hilton Hotels, Hyatt Hotels to name a few – will have greater bargaining power when negotiating with owners because there will simply be fewer competing companies.

Will Hotel Companies be Less Flexible? A common concern among hotel owners is the desire for their brands to acknowledge the unique qualities of each property. While some franchised or branded businesses can achieve a high degree of uniformity, hotels are special, and hotel owners need brands to recognize that. As much as brands strive to create a consistent experience at all properties operating under the same name, local differences – whether it be location, common amenities, zoning, legal restrictions, competition or otherwise – have to be addressed. But larger companies have greater reasons to increase efficiency and reduce variations between different properties, and hotel owners may have difficulty ensuring that local needs are met.

Will New Players Step Into the Breach? At the same time, it may be possible for new, smaller and more nimble brands to make inroads in this market. If there is less differentiation between different flags, if the larger players are less flexible, the smaller players may find inroads and opportunities that are closed to them now. It’s even possible that Marriott-Starwood may choose to shed some brands, for antitrust or business reasons, giving rise to new competition.

The JMBM Global Hospitality Group® believes that hotel owners should be mindful of these concerns when considering their branding opportunities, and when negotiating with brands. Our practice focuses on leveling the playing field between brands and owners, and creating a lasting, functional relationship between them. While this merger may lead to a new set of rules for the road, we are ready to help our clients understand the new realities navigate the new landscape.

CONTINUE READING →

Published on:

03 November 2015

FCC takes two enforcement actions on Wi-Fi

On November 2, 2015, the FCC issued two separate news releases on Wi-Fi blocking. In one action, the FCC announced a $718,000 fine against M.C. Dean, one of the nation’s largest electrical contracting companies, for blocking personal mobile “hotspots” of convention visitors and exhibitors who tried to use their own data plans at the Baltimore Convention Center to connect to the Internet rather than paying M.C. Dean substantial fees to use the company’s Wi-Fi service.

FCC fines Wi-Fi hotspot provider M.C. Dean

According to the FCC, as the exclusive provider of Wi-Fi access at the Baltimore Convention Center, M.C. Dean charges exhibitors and visitors as much as $1,095 per event for Wi-Fi access. Last year, the Commission received a complaint from a company that provides equipment that enables users to establish hotspots at conventions and trade shows. The complainant alleged that M.C. Dean blocked hotspots its customers had tried to establish at the Baltimore Convention Center. After receiving the complaint, FCC Enforcement Bureau field agents visited the venue on multiple occasions and confirmed that Wi-Fi blocking activity was taking place.

The Enforcement Bureau’s investigation found that M.C. Dean engaged in Wi-Fi blocking at the Baltimore Convention Center on dozens of occasions in the last year. During the investigation, M.C. Dean revealed that it used the “Auto Block Mode” on its Wi-Fi system to block consumer-created Wi-Fi hotspots at the venue. The Wi-Fi system’s manual describes this mode as “shoot first, and ask questions later.” M.C. Dean’s Wi-Fi blocking activity also appears to have blocked Wi-Fi hotspots located outside of the venue, including passing vehicles. The Commission charged M.C. Dean with violating Section 333 of the Communications Act by maliciously interfering with or causing interference to lawful Wi-Fi hotspots.

FCC fines and warns Hilton

In a separate announcement, unrelated except as to the subject matter, the FCC proposed a $25,000 fine against Hilton Worldwide Holdings, Inc. for “apparent obstruction of an investigation into whether Hilton engaged in the blocking of consumers’ Wi-Fi devices”. A consumer complaint alleged that Hilton was blocking visitor’s Wi-Fi in Anaheim, California in order to force them to pay a $500 fee to access Hilton’s Wi-Fi. Other complaints alleged similar Wi-Fi blocking at other Hilton-brand properties. CONTINUE READING →

Published on:

 

02 October 2015

We are pleased that the Continuing Resolution passed by Congress yesterday includes a temporary extension of the EB-5 Regional Center Program. This extension allows the program to continue generating foreign direct investment and creating U.S. jobs through December 11, 2015.

In addition to extending the current program to December 11, this will also provide additional time for Congress to consider a long-term reauthorization bill that would include reform measures to strengthen federal oversight and the integrity of the program. Members of Congress from both parties and both the House and Senate are negotiating in good faith.

This week, two Senate bills were introduced that propose revisions to the EB-5 program.

Last week, our team closed $350 million in EB-5 financing for our developer clients. We have sourced more than $700 million in EB-5 financing for developer clients and believe the EB-5 program will continue to be an important source of funding for qualified projects.

We will continue to report on EB-5 developments as they unfold. CONTINUE READING →

Published on:

21 September 2015

The Global Hospitality Group® is best known for its expertise in connection with hotels and resorts. We also have an active restaurant practice, and like a hotel, a restaurant is an operating business integrally intertwined with special purpose real estate. We frequently advise restaurant owners and operators on labor and employment, ADA, management, and finance and licensing issues, and we have a particular expertise relating to celebrity chef deals.

Senior Global Hospitality Group® member David Sudeck recently participated in a roundtable discussion about the food and beverage industry in Los Angeles, published in the Los Angeles Business Journal. The following discussion about licensing issues, EB-5 and crowdfunding investment in restaurant projects, gift card and loyalty programs and tax planning strategies is based on the roundtable and includes some clarifications and updates.

 

The Food & Beverage Industry in Los Angeles: A Roundtable Discussion
Supplement to the Los Angeles Business Journal

The food and beverage industry is unique in many ways. And here in Los Angeles, where we have some of the best dining and food-for-purchase options in the nation, there may be an even more finely tuned set of rules for success. Stir in an unpredictable economy and you’ve got a sector of Southern California business that continues to evolve faster than most. To make some sense of this exciting and unpredictable realm, the Los Angeles Business Journal turned to some of the leading experts in the region – from the financial, legal and business perspectives – to get their diverse insights and assessments regarding the current state of the industry that Angelenos most certainly couldn’t live without!

CONTINUE READING →

Published on:

09 September 2015

 

Editor’s note: The EB-5 program has been renewed! Congress completely shelved all the proposals discussed below, and instead decided to continue the program, without any change, through September 15, 2016. 

For the current status of the EB-5 financing program, see “EB-5 Immigrant Visa program extension signed into law — without any changes. EB-5 financing continues for new development projects.

EB-5 is at a critical renewal point

The next 3 weeks are going to be crucial for the EB-5 industry as the current legislation sunsets on September 30, 2015. While the consensus is that this important program will be renewed, and perhaps made permanent, there are lots of currents circulating about possible changes in the program.

We want to share with you some keen insights we recently received.

EB-5 update and insights from an industry insider

Below is the full text of a letter recently sent to industry colleagues by Pat Hogan, President, CMB. Pat is one of the leading proponents of EB-5, and is also a founder and board member of the IIUSA (Invest In the USA) which is the national industry trade association for the EB-5 Regional Center Program.

Greetings,

I wanted to share my thoughts with you after having recently visited no less than 60 Congressional and Senatorial offices within the last 40 days. I also just attended the American Immigration Lawyers Association (AILA) EB-5 Investors Summit this past weekend in Las Vegas.

CONTINUE READING →