Potential Cutoff Date in FY 2013 for China-born

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1 USI FUND Potential Cutoff Date in FY 2013 for China-born EB-5 Investors Since the creation of the EB-5 Immigrant Investor program in 1990, visa numbers for qualified foreign investors have always been current. Every chargeability country, including mainland China, has been able to receive an immigrant visa through the EB-5 program without having to worry about cut off dates or priority dates on visa bulletin. READ MORE U.S. Immigration Fund Hosted Pre-Christmas Dinner for Investors Children Investment Opportunities for Via Mizner Reaching Maximum Capacity The Charles of New York City Stands Strong Against Superstorm Sandy Monthly Update on Harbourside Jupiter Project USI FUND 美 国 I 1295 移 民 US 基 Highway 金 1295 One 美 I 国 North 一 号 Palm 高 速 Beach, 公 路 FL 北 棕 榈 滩 I EB5.USIF, 佛 罗 里 达 I 3340 usifund.com

2 Potential Cutoff Date in FY 2013 for China-born EB-5 Investors Potential Cutoff Date in FY 2013 for China-born EB-5 Investors Since the creation of the EB-5 Immigrant Investor program in 1990, visa numbers for qualified foreign investors have always been current. Every chargeability country, including mainland China, has been able to receive an immigrant visa through the EB-5 program without having to worry about cut off dates or priority dates on visa bulletin. Per country limits and cutoff dates are only triggered when the total demand for immigrant visa numbers in a category exceeds visa number limits as set by US immigration law. For previous years, total demand has been well below statutory limits. In 2011, for example, 3,463 EB-5 visas were used and in ,641 EB-5 visas were used. However, as the demand for EB-5 visas exceeds the statutory limit, a per-country limit will be triggered. If per-country limits are put in place cutoff dates and a visa backlog will be created for the EB-5 category. The Department of State, which publishes the monthly visa bulletin and makes decisions about visa cutoff dates, is aware of the increase in EB-5 popularity as well. The DOS has recently stated that a temporary cutoff date for mainland China investors may be expect in the first half of If I-526, I-485, and consular processing trends continue for immigrant investors, the DOS views it likely that nearly all 10,000 visas in the EB-5 category could be used by the end of the fiscal year. In the event that this happens, in order to assure that individual countries are not oversubscribed, there will be limits on who can apply for an immigrant visa in the second half of FY The only country that will potentially be affected by a temporary cutoff date will be China.

3 How Cutoff Dates Will Affect EB-5 Visa Allocation China-born investors currently make up nearly 80% of all EB-5 immigrant visas awarded in any given year. With the growth of the economy in China and wealth made from business and real estate ventures there, more and more wealthy individuals have the ability to invest one million dollars or a half million dollars in the United States for an EB-5 immigrant visa. Since China-born investors make up such a large part of total EB-5 visa applicants, it is likely that total demand for immigrant visas (based on I-526 approvals) will outstrip total visas availability in the near future. According to US federal law controlling immigration, the EB-5 category is allocated 7.1% of all employment-based visas in a given year. Currently this means, according to the law of the Immigration and Nationality Act, that there are roughly 10,000 EB-5 visas available to immigrants per year. Based on historic data and growth trends in the demand for EB-5 visas, the DOS is likely to temporarily restrict issuance of EB-5 visas to China-born applicants in the second half of fiscal year 2013 (around April 2013). If after a short period of time it becomes clear that demand for EB-5 visas from other nationalities will not push total demand over 10,000 for the year, Chinese investors will be able to apply again for EB-5 visas. By statute, only 7% of visas in any given family or employment-based preference can go to qualified applicants born in a particular country when all the visas in that category have been used. If the DOS perceives excessive worldwide demand (including from China) for EB-5 visas in a given year, it will reflect this information in the Visa Bulletin. For example, only 7% of the EB-2 visas given in a year may be given to individuals born in mainland China. If visas remain in a preference category no per country limit will be imposed in that preference category. For example, since the EB-5 category has never granted all of its visas (~10,000 per year), no per country limit has yet been put in place. However, since more and more foreign investors are immigrating to the United States based on the EB-5 category, it is likely that the statutory limit of visas will be triggered in the near future. When this happens, per country limits will be put in place and no more than ~700 visas a year will be given to applicants born in each country. However, since applicants from China are the majority of EB-5 investors, if other countries do not use up all of the rest of the visas, Chinese applicants will be able to receive much more than 700 visas in a year. Still, cut off dates based on the priority dates of approved I-526s will be what determines which Chinese investors are able to receive the remaining immigrant visas first. EB-5 Visas Also Go to Investors Families With each approved I-526, an alien may also bring his/her immediate family members (spouse and minor children) to the United States. These family members also use visa numbers from the EB-5 category, even though they

4 are not investors. The 10,000 total visas available in the EB-5 preference category include dependent visas as well. Assuming that an average family size is somewhere between 2 and 3 members, roughly 4, I-526 approvals would mean the EB-5 category would meet its fiscal year visa limit in the future. In Fiscal Year 2012, the USCIS approved 3,677 I-526 applications. Moreover, 7,641 EB-5 immigrant visas were issued through consular processing or adjustment of status. Please note that some of the fiscal year ,641 EB-5 immigrant visas issued were based on I-526 approvals from the previous year. By the same reasoning, some of the I-526 approvals from a previous year will lead to more EB-5 immigrant visas being issued in the next fiscal year. Conclusion As the popularity of the EB-5 visa grows and as Chinese investors share of total visa receipts grows as well, cutoff dates will start to be established for China-born investors. If there is the perception at the DOS of excessive demand, cutoff dates for China-born investors will be triggered. The cutoff date that has been mentioned by the Department of State for fiscal year 2013 will be relatively short and will not create a substantial backlog yet. Even though EB-5 visas may not become totally oversubscribed this year, there will still be a period of time where not everyone with an approved I-526 from China will be able to adjust status or consular process for an immigrant visa. Cutoff date waits will initially be short, but this precedent shows the trends in visa allocation which will increasingly make China-born investors wait for a green card. As with other preference categories with backlogs, there is no reason to not file an I-526 as early as possible. Cutoff dates will only affect when an alien can consular process or adjust status, not when he/she can file an I-526. In fact, as cutoff dates become a common sight in the EB-5 category, earlier filing dates will become an asset to investors. Theoretically, if the per country limit is triggered there will be only 700 visa numbers for Chinese investor. However, if as the fiscal year goes on investors from other countries do not have a high demand for the remaining visas, Chinese investors and their families will continue to receive much more than 700 visas every year. So, cutoff dates may be put in place in the near future, but Chinese investors and their families will still receive well over 700 visas per year if there continue to be visas available in the EB-5 preference category.

5 U.S. Immigration Fund Hosted Pre-Christmas Dinner for Investors Children Christmas is on its way! Families everywhere are busy with their holiday shopping and decorating their homes. Students are preparing for their final tests, and readying to go home and celebrate with their families and friends. The U.S. Immigration Fund (USIF) cordially invited the children of clients who are working with the Harbourside Place Project to attend a pre-christmas dinner. The event was fun, festive and a great way for the families to meet one another. Harbouside Place was USIF s first EB-5 project, and 70% of the investors are from China. Most of the families involved have already received I-526 approvals. As USIF is aware that many of the families involved have children attending Florida Atlantic University, Northwood University and University of Miami, Nicholas Mastroianni wanted to offer these hard-working students a great way to relax, enjoy other like-minded individuals and partake in an evening of holiday celebration. The group went to a famous Chinese restaurant downtown West Palm Beach, and enjoyed a wonderful meal. During the dinner, Nicholas asked the students to share their experience in the U.S. so far. They were all excited to talk about their wonderful lives in Florida. They gave positive reports on professors at their universities, describing many as patient and friendly. Because English is not their first language, professors are willing to answer their questions and help them with school works during their spare time. Local students are very friendly with them, and enjoy hanging out with them after class to share and learn about each other s different cultures. Students reportedly love the sunny Florida weather, beach breezes and clean air, describing it as a great environment to live and learn in. When Nicholas asking them if they missed the traditional Chinese food from back home, they all admitted that they in fact do, but they have all become great chefs in the absence of their parents. There are many Chinese grocery stores in South Florida, and the young adults enjoy shopping and purchasing the traditional foods for home cooking. They all said that they have learned to be independent in the U.S., and that their parents are very happy to see that.

6 The dinner lasted about three hours, and all involved had a great time. One young man said it feels like USIF is our family in the US! At the end of the evening, Nicholas wished all of them Merry Christmas and good luck on their final exams. The dinner ended with smiles. USIF would like to invite all clients and their families to join the family atmosphere at the organization. The company works hard to bring you and your families to the U.S. and to obtain green cards for everyone. So next time you re in town, don t hesitate to call us and join the big USIF family!

7 Investment Opportunities for Via Mizner Reaching Maximum CapacityInvestors Children Via Mizner is an EB-5 project, represented by the US Immigrations Funds Florida Regional Center. The mixed-use real estate development is scheduled to be constructed in three phases, and will rest on 6.8 acres of land in Boca Raton, Florida. The project will include a luxury hotel, residential space, Class A office space, retail space, restaurant space and parking. Offsite improvements are expected to include the purchase of and renovations to an existing 18-hole golf course and country club. USIF worked with the leading immigration agent in China to promote the project in the Chinese market through the course of several seminars. The necessary investment requirements for phase 1 and 2 of the project were obtained within two months. Jack Nicklaus, the super golf star, has been invited by the US Immigration Fund to attend the phase 3 opening ceremony in Bejing on October 11th. Nicklaus will work with the firm to design the Via Mizner golf course, which will resultantly make the project a coveted luxury destination. Currently, USIF has limited opportunities for investment in phase 3 remaining. As opportunities are lessening by the day, it is strongly recommended that interested investors apply as soon as possible. The project is on schedule for its targeted completion date and is being overseen by Penn-Florida, a real estate owner and developer with primary offices in Boca Raton, Florida. Penn-Florida has expertise in planning, zoning, acquisition, development, design, construction, brokerage, property management and capitalization of both commercial and residential real estate. With more than 30 years industry experience, Penn-Florida has built stable and strong relationships with local government, contractors and top banks, and never had a failed project.

8 The firm purchased the project land five years ago, and has already provided the capital to the project account. JP Morgan Bank also committed to make a loan to the project, which was fulfilled a couple weeks ago. Moss Construction will be the project contractor, and already received the completion guarantee from Travelers, a worldwide A+ insurance company, to ensure the construction will be completed on schedule within the planned budget. Construction will begin January, 2013 and will be completed in Once the project has been completed, it will hold a value of $479 million, 3.3 times the amount of the EB-5 loan. Combined with the developers and contractors well-known capability and the market feasibility, Via Mizner is an obviously sound project. Opportunities to invest are soon to be sold out, as many foreign investors realize its ability to help them reach their American Dream.

9 The Charles of New York City Stands Strong Against Superstorm Sandy USIF is humbled and pleased to announce its property, The Charles, a multi-use real estate development in New York City, was unharmed by Superstorm Sandy a weather phenomenon that left devastating effects upon offices, schools, hospitals, streets and homes elsewhere. As the City continues to recuperate from the storm and business rebounds from its wounds, construction of The Charles swings back into full speed. The well-known developer, Bluerock Real Estate, has already invested their capital into the project and is currently overseeing construction progress. Bluerock is a national real estate investment firm headquartered in Manhattan, NY, with regional offices in Phoenix, Arizona and Southfield, Michigan. The firm focuses on acquiring, managing, developing and syndicating stabilized, value-added and opportunistic multi-family and commercial properties throughout the United States. Bluerock and its principals have collectively sponsored or structured real estate transactions totaling approximately 25 million square feet and with approximately $3 billion in value. The professional group has more than 50 years combined experience in the finance and real estate fields including underwriting, development, construction, acquisition, disposition, and property management. The firm s strong history and successful track record has helped build strong relationships with numerous senior lenders, including international banking institutes. New York City attracts visitors and residents from allaround the world every year. People come to the City to buy houses to enjoy the lifestyle. The New York real estate market has experienced a strong rebound since the recession. Most top brokers continue to emphasize the strength and stability of the New York real estate market as it heads into A top reason for New York s rebound is its international market. For the past

10 few years, affluent buyers from all over the world have poured into the increasingly globalized Manhattan real estate market. Chinese nationals in particular are a powerful contingent of the international investors buying Manhattan real estate. Investors from Europe, Asia and South America all continue to seek out NYC real estate as economic and political turbulence across the world and the weak US dollar drive them to NYC as a long-term equity play. Overall, it appears that the Manhattan real estate market is looking strong, and investors should be confident about it that we can see the bright future of the Charles. The senior loan for The Charles, from Starwood Capital, has already been fulfilled and is ready to be utilized in completing the project. Every aspect of the project is on schedule and construction will be complete in EB-5 investment requirements for The Charles project were fulfilled within three days of its July presentation by U.S. Immigration Fund. During the last four months, the subscribed investors have completed their applications and filed their I-526 petitions with the United States Citizenship and Immigration Service (USCIS).

11 Monthly Update on Harbourside Jupiter Project Harbourside Place is a public-private real estate development in Jupiter, Florida, represented by US Immigration Funds Florida Regional Center. The State of Florida and the Town of Jupiter have invested millions of dollars into the Project and continue to provide their full support of its completion. To date, the project has received 100% approval of the I-526 applications & I-485 for petitioners. Currently, US Immigration Fund is receiving immigration approval letters from the United States Citizenship and Immigration Services (USCIS) for foreign investors who contributed to the project on a daily basis. The firm is also proactively managing the process to accelerate the approval of all outstanding I-526 Petitions. USCIS has retained expert immigration attorneys, lobbyists and others to ensure that all of the EB-5 visas filed by the firm are processed and approved as quickly as possible. In certain cases, USIF investors have received I-526 approvals in as little as 14 days, with an average approval period of two months, a timeframe much quicker than the industry average approval period of six to eight months. Thanks to the year-round temperate weather of Southern Florida, the project remains on schedule and will be completed and open to the public at the end of The most recent construction activity involved the demolition of the existing buildings that occupied a portion of the project site to make way for the new building that will house government offices, retail shops, professional office suites and a 1,000-car parking garage. The following aerial photography was taken November, Construction crews are working in the southeast corner of the property, where the First Union bank was previously located.

12 Looking Southwest at Harbourside Place Looking Southwest at Harbourside Place Looking Northeast at Harbourside Place

13 This newsletter has been presented by the U.S. Immigration Fund. USIF is established as a representative for the 1990 United States Congress approved EB-5 Regional Center Program. It provides worthwhile opportunities for foreign investors and their families to obtain green cards and permanent United States residency through the EB-5 Visa Program. For more information about EB-5 Visa s, EB-5 Visa Projects and related news, please visit our website at visit our blog or us at info@usifund.com. You are always welcome to call us at EB5.USIF as our representatives are available to assist you. DISCLAIMER: This book is intended for general information purposes only. This does not represent an offer or solicitation to buy or sell any security. Investments are available only to qualified investors via a confidential offering memorandum.