Memorandum

To : From : RE : EB-5 Investor Program File Robert Weihe, Esq. Brief on USCIS EB 5 investor program - updated May 9, 2013

Immigrant Investor Program (EB-5) Summary

The EB-5 visa is an immigrant investor program created by the Immigration Act of 1990 and administrered by the United States Citizenship and Immigration Service (USCIS). The program is a vehicle for the United States of America (US) to stimulate the economy focusing on job creation and capital investment by foreign investors. This program allows foreign nationals to earn a permanent resident visa, for themselves and their immediate family, by investing USD 1,000,000 in a qualifying business enterprise, by virtue of a project, which will create 10 new U.S. jobs or save 10 existing jobs. The amount of investment may be lessened if the geographical investment area is categorized as a Target Employment Area. Investors approved by USCIS will be required to make a subsequent filing within 21 24 months of landing in the U.S. The filing must prove that the Investor sustained the investment, and that the investment created the 10 jobs required. Foreign Nationals may invest directly in new or distressed enterprises or through an approved Regional Center project. The general experience for EB 5 has shown more success and opportunity in investments through a Regional Center (RC).

Brief on Regional Center

The Regional Center is an investment promotion entity (public, private or non-profit) approved by USCIS to offer qualifying investment opportunities in a defined geographic area, in specific industrial/commercial categories, that comply with the EB-5 program. There are now over 125 approved regional centers in the U.S. In FY 2009-10, 1274 EB-5 petitions were approved by USCIS generating $700 million in project investment. It is projected that as much as $1 billion in investment dollars will flow into the U.S. through this program in FY 2010-11. According to the USCIS archives, the agencys target date to decide on applications is 4 month, where its actual target date is 9 to 10 months. However, we have done additional research through market sounding and average/actual time is more in the vicinity of 12 months. There have been few cases reported to have taken closer to two years for Regional Center approval. The following is a timetable for internal planning purposes.

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Preparation of application: Processing by USCIS: Regional Center Approval:

2 3 months 6 8 months 8 12 months

Types of EB-5 Projects

EB-5 projects assume many different business models and operate within many different industries. Types of EB-5 Projects include, but are not limited to: Mixed use retails Hotel Sports stadiums Restaurants Agricultural developments including wineries and almond farms Electric vehicles Manufacturing Bio-technology and medical technologies Casinos Entertainment venues Convention centers Office buildings

Local EB 5 Regional Centers

As of the date of this memorandum, Puerto Rico has only one approved Regional Center, know as the Omega Puerto Rico Regional Center, LLC. Our fact-finding has revealed that there are at least two more applications that we will be filed shortly. We continue to discuss with our contacts since interest in this program is very high at this moment.

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