Friday, September 16, 2016

Congressman Goodlatte's new EB-5 bill: impacts for Chinese migration agents

Congressman Bob Goodlatte's new EB-5 regional center reform bill requires overseas finder and agents to fully disclose their fees when they represent and promote regional center projects. The new reform bill also require agents to register with USCIS and disclose all fee arrangements with investor clients.  Investors are also required to sign a disclosure that they understand such fee arrangements between finders and projects.

Currently most of fee arrangements are not disclosed by Chinese migration agents, and many investors are not aware of compensations paid to agents from project developers and/or regional centers.  Because investors have to sign a disclosure and acknowledge such payments to their "immigration consultants" from US projects, investors might be quite upset if such fees are high or exceed their expectations.  As a result, we expect that Chinese agents will try to utilize third party offshore company to keep fees invisible to the end (investors) clients. In the mean time, big agents may no longer feel comfortable to ask for big fees from US regional centers and developers.  The new bill may be helpful to lower marketing costs for regional centers.

To learn more about EB-5 market conditions, join us in NYC on Oct. 26.

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