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EB5 Express Regional Center Approval Notices
EB5 Express Regional Center Approval Notices
EB5 Express Regional Center Approval Notices
EB5 Express Regional Center Approval Notices
EB5 Express Regional Center Approval Notices
EB5 Express Regional Center Approval Notices
EB5 Express Regional Center Approval Notices
EB5 Express Regional Center Approval Notices
EB5 Express Regional Center Approval Notices
EB5 Express Regional Center Approval Notices
EB5 Express Regional Center Approval Notices
EB5 Express Regional Center Approval Notices
EB5 Express Regional Center Approval Notices
EB5 Express Regional Center Approval Notices
EB5 Express Regional Center Approval Notices
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EB5 Express Regional Center Approval Notices

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Combined Approval Notices for ease of reference and study.

Combined Approval Notices for ease of reference and study.

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  • 1. Page 1 of 15 EB5 Express Regional Center Approval Notices: A Prior “Limited Decision” (7/18/2013) and the “Corrected” Approval Notice (4/23/2014) after a Victorious Motion to Reopen and Reconsider In original UCIS letterhead was used And the familiar seal etc., would be here. Date of Approval July 18, 2013 [Addressee Info was here.] ***** Re: Initial Regional Center Designation Limited Decision EB-5 Express Regional Center RCW1118250239/ RCW1118250239 This notice of a limited decision is in reference to the Form 1-924, Application for Regional Center Under the Immigrant Investor Pilot Program that was filed by the applicant with the US. Citizenship and Immigration Services (“USCIS”) on July 1, 2011. The Form I-924 application was filed to request approval of initial regional center designation under the Immigrant Investor Program. The Immigrant Investor Program was established under 610 of the Department of Commerce, Justice and State, the1ud1c1ary, and Related Agencies Appropriations Act of 1993 (Pub. L. 3102-395, Oct. 6, 1992, 106 Stat. 1874). In addition to the Form I-924, the applicant submitted a completed exemplar Form I-526, Immigrant Petition by Alien Entrepreneur, seeking USCIS review and approval of an actual project supported by a comprehensive business plan as contemplated in Matter of Ho, 22 I&N Dec. 206 (Assoc. Comm’r 1998). In addition, the applicant submitted several completed hypothetical projects seeking USCIS review and approval of these hypothetical projects.
  • 2. Page 2 of 15 EB5 Express Regional Center / RCW1118230239/1131118250239 2 of 11 I. Regional Center Designation Limited Decision1 The applicant submitted its Form 1-924 requesting specific industry categories, geographic regions, an actual project, and multiple hypothetical projects to be identified for the Regional Center's use. Upon review of the record, USCIS has determined that not all of the requested industry categories, and geographic regions provided in the Form I-924 represent an appropriate application of actual and hypothetical projects to support the industry categories, and geographic regions acceptable for use by the Regional Center. Further, the requested actual project does not contain a business plan that provides sufficient verifiable detail supported by economically or statistically sound forecasting tools to reasonably demonstrate that the requisite number of jobs will be created for qualifying employees within a reasonable period of time. As such, USCIS has concluded that a limited decision is necessary in this case. Therefore, requested and approved industry categories, geographic regions, and projects have been identified below followed by a decision to disallow any remaining industry categories, geographic regions, actual and hypothetical projects that do not meet requirements. A. Approved Industry Categories, Geographic Areas, and Hypothetical Projects The Regional Center is approved for the following industry categories, geographic areas, and hypothetical for use by the Regional Center. 1. Geographic Areas - Approved The applicant is requesting jurisdiction over a geographic area Within the State of California which includes the counties of Alameda, Santa Clara, San Francisco and San ]ose that make up the specific geographic region within the Scare. However, {he record is only sufficient to support the approval of a selected number of the geographic areas requested in the Form 1-924. The remaining disallowed geographic areas are listed and discussed Eater in this decision. The Following are those geographic areas that have been approved for use by the Regional Center: State Counties California San Francisco and San Mateo Counties 1 USCIS issued a Policy Memorandum (PM-602-0083) on the subject of "EB-5 Adjudication Policy," dated May 30, 2013, stating that formal amendments to the regional center designation are no longer required when a regional center changes its industries of focus or geographic boundaries. A regional center may still elect to pursue a formal amendment by filing Form I-924 if it seeks certainty in advance that changes in the industries or the geographic area will be permissible prior to fiéing Form I-526 petitions. [In the USCIS Notice this is the first and only footnote.]
  • 3. Page 3 of 15 EB5 Express Regional Center / RCW1118230239/1131118250239 3 of 11 2. Industry Categories – Approved The applicant is requesting fourteen (14) industrial categories. However, the record is only sufficient to support the approval of only a selected number of the requested industry categories provided in the Form L 924:. The remaining disallowed industry categories are listed and discussed later in this decision. The following are those industrial categories that have been approved for use by the Regional Center: Regional Center NAICS Codes NAICS Code Industry Title 721110 Hotels (except Casino Hotels) and Motels 334413 Semiconductor- and Related Device Manufacturing 33591 Manufacturing 3. Hypothetical Projects A hypothetical project does not have the factual details necessary to be in compliance with the requirements described in Matter of Ho, 22 Dec. 206 (Assoc. Comm'r 1998). As such, USCIS’s approval of any hypothetical creation estimates presented in a Form I-924 is not accorded deference and may not be relied upon by an individual investor when filing the Form I-526. The business plan and job creation estimates will receive a de novo review by USCIS when an individual investor files Form 1-526. Once an actual project is adjudicated upon the filing of the initial Form 1-326 related to the I-924 hypothetical project approval, USCIS will give deference to subsequent Forms I-526 when the critical assumptions remain materially unchanged from the initially-approved Form I-526. When filing Form I-526, it is the responsibility of the individual investor to submit a comprehensive, detailed and credible business plan, showing by a preponderance of the evidence that his or her investment in the new commercial enterprise will create not fewer than 10 full- time positions. If prior to filing a form I-829, the job creation estimates in the business plan submitted by the individual investor materially changes or will not be realized, then it will be the responsibility of the investor to notify USCIS of an agreed upon methodology to allocate job creation among eligible investors. 4. Hypothetical Projects – Approved Effective the date of this notice, USCIS approves the applicant’s request to include the following hypothetical capital investment project. Project #1 – Hotel The proposed project involves the acquisition, renovation, and operation of a vacant hotel. This 36,607 square-foot building on 0.15 acres of land has 89 rooms and four ground floor commercial retail tenants. The hotel offers 28 rooms and 61 European-style rooms with shared bathrooms. Of these available rooms,
  • 4. Page 4 of 15 EB5 Express Regional Center / RCW1118230239/1131118250239 4 of 11 66 are dedicated as residential rooms and 23 are designated as tourist hotel rooms. The project is estimated that the project will cost $24.5 million, of which $1 million will be from two immigrant investors and generate approximately 35.5 jobs. Project #2 - Battery Manufacturing The proposed project involves the funding of a high-tech start-up company. The project is specifically for the establishment of a manufacturing plant for the lithium ion battery division of the company. The company is currently in the research and development (R&D) phase of creating new lithium ion battery technology and seeks EB-5 funds to establish a lull production line once the first line of products have completed the R&D process. The applicant estimates that the project will cost $5 million, of which 551 million will be from 2 immigrant investors and generate approximately 101 .7 jobs. Project #3 - Solar Manufacturing The proposed project involves the funding of solar manufacturing to establish a full service' solar company once has been completed and the product line is ready to be marketed and manufactured. The solar company will be a vertically integrated solar products and services company that designs, manufactures, and delivers high-performance solar electric systems worldwide for residential, commercial, and utility scale customers. It is estimated that the project will cost $5 million, of which $2 million will be from two immigrant investors and generate approximately 99.7 jobs. B. Decision to Disallow Certain Requested Industry Categories, Geographic Areas and projects The purpose of this decision is so identify those requested industry categories, geographic areas and projects that have been disallowed and to discuss the reasons for being disallowed. 1. Geographic Areas – Disallowed State Counties/Cities California Alameda and Santa Clara 2. Industry Categories – Disallowed NAICS Industry Name 333295 Semiconductor Machinery Manufacturing 445 Clothing and Clothing Accessories Stores 448 Food and Beverage Stores 446 Health and Personal Care Stores
  • 5. Page 5 of 15 EB5 Express Regional Center / RCW1118230239/1131118250239 5 of 11 452 General Merchandise Stores 52110 Commercial Banking 722 Food Services and Drinking Places 8121 Personal Care Services 8123 Dry Cleaning and Laundry Services 531 Real Estate 561 Administrative and Support Services Industry codes 445, 448, 446, 452, 522150, 722, and 8121 have been disallowed because they apply to tenant business activities and no proposal has been made to operate businesses in these industries. Also, a preponderance of evidence has not been satisfied that demonstrates that these jobs would not have been created in the absence of the construction activity. This issue is discussed below. Industry codes 333295 and 531 above have been disallowed because they are related to the projects that have been disallowed. The projects that have been disallowed will be discussed below. Industry Code 561 has been disallowed because there is no indication that the Regional Center will be engaging in this activity. 3. Hypothetical Project – Disallowed Project - Shopping Center The applicant’s proposed project involves the acquisition of land and existing buildings to develop a mixed-use commercial shopping center and to establish and operate a series of businesses within the mixed-use commercial shopping center development in the County of Santa Clara, California. The applicant indicates that the landlord and tenant businesses will engage in what are called LOOOM agreements (methodology explained below). The development will be directly adjacent to the Gilroy Premium Outlets, which is one of the largest premium outlets in the United States. The applicant estimates that the project will cost $16 million, of which $11 million will be from 22 immigrant investors and generate approximately 226.4 jobs. Facilitation of Tenant Employment The project: will be engaging in an entirely different methodology known as the LOOOM approach. The LOOOM approach, which stands for Landlord Owner-Operator Occupancy Methodology, is where the landlord/owner teams up with various partners to engage in different businesses throughout all the leasable space in the mixed-use shopping center by investing in various businesses. The operator of the businesses and landlord shall co-own and co-operate in the running of these businesses. A sample LOOOM agreement has been submitted as evidence to support its change in methodology. However, no signed LOOOM agreements between the landlord and the prospective tenant businesses that will establish operations in the mixed-use shopping center have been submitted.
  • 6. Page 6 of 15 EB5 Express Regional Center / RCW1118230239/1131118250239 6 of 11 A listing of each market analysis of the different industries to which the applicant intends to lease space is as follows:  The retail market analysis indicates that there will be growth of 37.6 percent in retail sales between 2011 and 2016. The analysis does not, however, specify the source of this statistic.  According to Bizminer (a financial ratio and industry reporting source), the Food Services and Drinking Places industry is projected to grow by 0.7 percent through 2918, with output projected to grow by 0.6 percent over the same period. However, the unit of measurement to which the 0.7 percent growth pertains is not specified.  Regarding market for retail space, the analysis cites the Santa Clara Shopping Center Report indicating that the vacancy rate for shopping centers within Santa Clara County was 6.1 percent in mid-2011, which was a 0.6 percent decrease from mid-2010.  According to Bizminer, the personal care services market has seen increases in volume and sales by 12.5 percent and 7 percent, respectively, between 2010 and 2011. The market also saw an increase in the number of businesses in this industry during the same time period.  According to Bizminer, there has been almost no growth in volume in laundry services demand between 2010 and 2.01 I but an increase in revenue indicating that the prices have gone up for these services mainly due to increases in chemical, water, and utility costs. Bizminer also indicates that the number of businesses in dry cleaning and laundry services declined between 2810 and 2011.  Regarding the market for services to buildings and dwellings, the market analysis provides data on the market size, employment, and level of output but does not provide any data indicating the existence of excess demand or limited supply for services within this market. .  According to Bizminer, output in the finance and insurance; is forecasted to increase 0.6 percent per year through 2018. Overall, the analysis indicates that there is demand for services within this industry that would be met by the shopping center. Overall, the facilitation of tenant employment it is not sufficiently demonstrated because the following has not been shown: (1) unmet demand and/or limited supply for the leasable retail space, and (2) unmet demand and/or limited supply for the services to be offered by the specific tenant businesses. Specifically:  The market analysis does not show evidence of unmet demand or lack of supply for retail/commercial space in and around Santa Clara County, California.  It has not been demonstrated the prospective tenant businesses will be new and not relocated from elsewhere. The preponderance of evidence showing that tenant occupancy issues have been resolved has not been satisfied. 4. Actual (Matter of Ho Compliant) Exemplar 1-526 project – Disallowed a) Economic Impact Analysis - Insufficient to show job creation The applicant requests to include Frontier Semiconductor, Inc. as a new actual Capital investment project(s). The actual project is described as follows:
  • 7. Page 7 of 15 EB5 Express Regional Center / RCW1118230239/1131118250239 7 of 11 The applicant's proposed project involves Frontier Semiconductor Inc., a troubled business that plans on injecting EB-5 investment capital into business operations to increase personnel, marketing and sales activity, and research and development (R&D) to bring in additional income. The applicant estimates that the project will cost $5 million, of which $1 million will be from 2 immigrant investors and generate approximately 51.8 jobs. b) Business Plan - Matter of Ho Non-Compliant The issue to be discussed here is whether the business p1an(s) submitted with the applicant’s Form I-924 are sufficiently detailed to permit the Service to reasonably conclude that the enterprise has the potential to meet the job-creation requirements. Pursuant to 8 C.F.R. 204.6(j)(4)(i)(B), if the employment-creation requirement has not been satisfied prior to filing a Form I-526 petition, the petitioner must submit a “comprehensive business plan” which demonstrates that “due to the nature and projected size of the new commercial enterprise, the need for not fewer than ten (10) qualifying employees will result, including approximate dates, within the next two years, and when such employees will be hired.“ To be considered "comprehensive," a business plan must be sufficiently detailed to permit the Service to reasonably conclude that the enterprise has the potential to meet the job-creation requirements. In Matter of Ho, the Administrative Appeals Office held that a “comprehensive business plan as contemplated by the regulations should contain, at a minimum, a description of the business, its products and/or services, and its objectives." Elaborating on the contents of an acceptable business plan, the ' decision states the following: "The plan should contain a market analysis, including the names of competing businesses and their relative strengths and weaknesses, a comparison of the competition's products and pricing structures, and a description of the target market/prospective customers of the new commercial enterprise. The plan should list the required permits and licenses obtained. If applicable, it should describe the manufacturing or production process, the materials required, and the supply sources. The plan should detail any contracts executed for the supply of materials and/or the distribution of products. It should discuss the marketing strategy of the business, including pricing, advertising, and servicing. The plan, should set forth the business‘s organizational structure and its personnel's experience. It should explain the business’s staffing requirements and contain a timetable for hiring, as well as job descriptions for all positions. It should contain sales, cost, and income projections and detail the bases therefor. Most importantly, the business plan must be credible." See Matter of Ho at page 9. The first issue concerns the project timeline. The project timeline commencement was adjusted forward to July, 2015 so that the forecasted revenues will occur in the final year of USCIS' required two year and six month timeframe. However, for an exemplar project, a transparent timeline that details the cost and duration of each phase of the project should be provided. It was stated that Frontier Semiconductor is
  • 8. Page 8 of 15 EB5 Express Regional Center / RCW1118230239/1131118250239 8 of 11 already engaged in operations, but the documentary evidence to verify this statement was not provided. Instead, a general overview without specific details of the production, costs, and inventory required to continue operations was submitted. Also provided was a three-year sales forecast for the operations of Frontier Semiconductor. However, what was not provided was a project timeline that would illustrate in detail the anticipated sequence and quantity of EB-5 capital infusion into the project and would show that the forecasted revenues will have occurred within two years and six months of the respective I-526 approvals. The second issue concerns the EB-5 capital. Evidence is not provided to demonstrate how a $5 million EB- 5 capital infusion will generate an increase of $12 million in revenue within two years and six months. The applicant states that with the $5 million investment: “ . . .the company will be able to penetrate other similar markets that it is currently in and take advantage of the core competency of the company by expanding horizontally into differentiated product lines. These product lines are profitable and each unit will sell for $3 .3 to $1.4 million.” It has been indicated that the funds will be used to: (1) accelerate product development, (2) expand the sales and the marketing effort, and (3) expand service support infrastructure and purchase of materials for the new products. It has been stated that the market demand for the company’s products already exists and that it has a good relationship with its existing customers. This response is not, however, supported by a business plan or market analysis. Thus, USCIS is not able to evaluate in greater detail the validity of these assumptions. The applicant did not provide sourced and verifiable analyses that, through the preponderance of evidence, would indicate the reasonableness of the assumptions. 5. Conclusion — Decision to Disallow Some aspects of the submitted proposal, as presently constituted, do not meet the regulatory requirements at 8 C.F.R. 204.6. Therefore the request to grant the specific geographic areas, industry categories and projects listed above cannot be approved. The decision to disallow the industry categories, geographic areas, and projects identified above does not preclude the filing of Form I-526 petitions related to a subsequent project using the disallowed industry categories, geographic areas, and/or actual project(s). Any future petitions will be adjudicated on their own merit. There is no appeal to this decision to disallow the specified industry categories and/or geographic scope explained above. However, pursuant 8 CFR 103.5, a motion can be filed on Form I-290B. Such motion must be accompanied by tbe proper fee and filed within 30 days of this notice.
  • 9. Page 9 of 15 EB5 Express Regional Center / RCW1118230239/1131118250239 9 of 11 Please note that if the I-924 applicant elects to timely file a motion with USCIS and if said motion is granted the application will be reopened and/ or reconsidered and a new decision rendered. If the applicant’s proposal submitted in support of its motion meets the regulatory requirements at 8 C.F.R. § 204.6 the geographic areas, industry categories and projects that meet EB-5 requirements will be included in a corrected approval notice. However, those geographic areas, industry categories and projects that do not meet EB-5 requirements will, again, be disallowed. If no motion is filed within the time allowed this decision is final. II. Job Creation USCIS approves the geographic area and industry categories noted below based on the economic impact analysis presented and reviewed in conjunction with the adjudication of this regional center proposal. The approval of this Form I-924 application is based upon the economically and statistically valid assumptions and estimates provided in the business plan for job creation. The hypothetical project does not have the factual details necessary to be in compliance with the requirements described in Matter of Ho, 22 Dec. 206 (Assoc. Comm’r 1998), and therefore, USCIS's approval of hypothetical job creation estimates presented in the Form I-924 will not be accorded deference and may not be relied upon by an individual investor when filing the Form I-526. The business plan and job creation estimates will receive a de novo review by USCIS when an individual investor files Form I-526. Once an actual project is adjudicated upon the filing of the initial Form I-526 related to the I- 924 hypothetical project approval, USCIS will give deference to subsequent Forms I-526 when the critical assumptions remain materially unchanged from the initially approved Form I-526. When filing Form I-526, it will be the responsibility of the individual investor to submit a comprehensive, detailed and credible business plan, showing by a preponderance of the evidence that his or her investment in the new commercial enterprise will create not fewer than 20 full—time positions. If prior to a form I-829, the job creation estimated in the business plan submitted by the individual investor materially changes or will not be realized, then it will be the responsibility of the investor to notify USCIS of an agreed upon methodology to allocate job creation among eligible investors. III. Guidelines for Filing Form I-526 Petitions Each individual petition, in order to demonstrate that it is affiliated with the EB5 Express Regional Center, in conjunction with addressing all the requirements for an individual immigrant investor petition, shall also contain the following: 1. A copy of this regional center approval notice and designation letter including all subsequent amendment approval letters (if applicable).
  • 10. Page 10 of 15 EB5 Express Regional Center / RCW1118230239/1131118250239 10 of 11 2. An economic impact analysis which a job creation methodology required at 8 CFR 294.6 (j) (4) (iii) and shows how capital investment by an individual immigrant investor will create A not fewer than (19) indirect jobs for each immigrant investor. 3. A comprehensive, detailed and credible business plan for an actual project that contains the factual details necessary to be in compliance with the requirements described in Matter of Ho, 22 Dec. 206 (Assoc. Comm’r 1998). 4. Legally executed organizational documents of the commercial enterprise. Note: The project reviewed with this Form I-924 application is a hypothetical project. Organizational and transactional documents associated with the new commercial enterprise (NCE) submitted with this Form I-924 have not been reviewed to determine compliance with program requirements since these documents will receive de novo review in subsequent filings (e.g., an amended Form I-924 application with a Form I- 526 exemplar or the first Form I-526 petition filed by an investor under the regional center project). IV. Designee’s Responsibilities in the Operations of the Regional Center As provided in 8 CFR § 204.6 (m)(6), to ensure that the regional center continues to meet the requirements of section 610(a) of the Appropriations Act, a regional center must provide USCIS with updated information to demonstrate the regional center is continuing to promote economic growth, improved regional productivity, job creation, and increased domestic capital investment in the approved geographic area. Such information must be submitted to USCIS on an annual basis or as otherwise requested by USCIS. The applicant must monitor all investment activities under the sponsorship of the regional center and to maintain records in order to provide the information required on the Form I-924-A Supplement to Form I-924. Form I-924A, Supplement to Form I-924 Application is available in the “Forms” section on the USCIS Website at www.uscis.gov . Regional centers that remain designated for participation in the immigrant investor program as of September 30th of a calendar year are required to file Form I-924A Supplement in that year. The Form I- 924A Supplement with the required supporting documentation must be filed on or before December 29th of the same calendar year. The failure to timely file a Form E-924-A Supplement for each fiscal year in which the regional center has been designated for participation in the Immigrant Investor Program will result in the issuance of an intent to terminate the participation of the regional center in the immigrant Investor Program, which may ultimately result in the termination of the designation of the regional center. EB5 Express Regional Center / RCW1118230239/1131118250239 11 of 11 The regional center designation is non-transferable, as any changes in management of the regional center will require the approval of an amendment to the approved regional center designation. [The last page also has a signature stamp for Dan M. Renaud as Acting Chief, Immigrant Investor Program.]
  • 11. Page 11 of 15 The first decision was limited. That was a novelty that we are not likely to see again. A Motion to Reopen and Reconsider was filed and USCIS lightened up. The “Corrected Approval” is much shorter and partially incorporates the “Limited Decision” into the more recent April 23, 2014 “Corrected Approval”. A discussion of some major points in, and differences between, older and more recent Decision Notices, in this case, Approvals, in light of recent AAO commentary about factfinding, analysis, and conclusions as seen in some I-526 Remands from late 2013, and early 2014, shed some light on the revised approach to adjudication I am noticing in the EB-5 context. In original UCIS letterhead was used And the familiar seal etc., would be here. Date of Approval July 18, 2013 [Addressee Info was here.] ***** Re: Initial Regional Center Designation EB-5 Express Regional Center RCW1118250239/ RCW1118250239 This notice is in reference to the Form 1-924, Application for Regional Center Under the Immigrant Investor Pilot Program that was filed by the applicant with the U.S. Citizenship and Immigration Services (“USCIS”) on July 1, 2011. The Form 1-924 application was filed to request approval of initial regional center designation under the Immigrant Investor Program. The Immigrant Investor Program was established under 610 of the Department of Commerce, Justice and State, the Judiciary, and Related Agencies Appropriations Act of 1993 (Pub. L. 102- 895, Oct. 6, 1992, 106 Stat. 1874). I. Executive Summary of Adjudication Effective the date of this notice, USCIS corrects the I-924 approval record based on the I290B Motion to Reopen and Reconsider the Form I-924 Approval Notice Based on the Limited Decision EB5 Express Regional Center RCW1118250239 filed on August 13, 2013. This corrected approval notice confirms the USCIS decision: to include Santa Clara County, California in the Regional Center’s approved geographical area; to approve the hypothetical Shopping Center project and its associated industry codes: 445, 448, 446, 452, 522110, 722 and 8121 based on a tenant occupancy job creation model; and
  • 12. Page 12 of 15 EB5 Express Regional Center RCW1118250239 / ID1118250239 Page 2 to approve the Battery Project as an actual project. II. Regional Center Designation USCIS approves the applicant’s request to focus, promote economic growth, and offer capital investment opportunities in the following geographic area and industry categories: A. Geographic Area State Counties/Cities California San Francisco County San Mateo County Santa Clara County B. Industry Categories 2[FN1] NAICS Industry Name 334413 Semiconductor and Related Device Manufacturing 033591 Battery Manufacturing g 000445 Food and Beverage Stores 000446 Health and Personal Care Stores 000448 Clothing and clothing accessories stores 000452 General Merchandise Stores 5221 10 Commercial Banking 721110 Hotels (except Casino Hotels) and Motels 000722 Food Services and Drinking Places 008121 Personal Care Services III. The Project Effective the date of this notice, USCIS approves the applicant’s request to include the following actual capital investment project. Project Type of Project Organization Documents Date of Document Aeotech Battery Project Geographic Actual Business Plan Submitted 07/01/2011 Revised 8/16/2013 Economic Analysis Submitted 07/01/2011 2 [FN1] USCIS issued a Policy Memorandum (PM-6020083) on the subject of “EB-5 Adjudication Policy,” dated May 30, 2013, stating that formal amendments to the regional center designation are no longer required when a regional center changes its industries of focus or geographic boundaries. A regional center may still elect to pursue a formal amendment by filing Form I-924 if it seeks certainty in advance that changes in the industries or the geographic area will be permissible prior to filing Form 1-526 petitions.
  • 13. Page 13 of 15 EB5 Express Regional Center RCW1118250239 / ID1118250239 Page 3 Location: San Jose, CA Focus of Investment: Loan Note: If changes to this project end its supporting documents are found in subsequent-Form I-526 or Form I-829 petitions, USCIS will review the supporting documents once more to ensure compliance with EB-5 program requirements. A. Job Creation USCIS approves the geographic area and industry categories noted above based on the economic impact analysis presented and reviewed in conjunction with the adjudication of this capital investment project. The job creation methodology presented in the economic impact analysis and underlying business plan is found to be reasonable based on the following inputs, when applying the IMPLAN economic model: NAICS Industry Name Input Multiplier ($Millions) Jobs 33591 Battery Manufacturing $20.0 5.09 101.7 101.7 Total Jobs: 101.7 The approval of this Form I-924 application is based upon the assumptions and estimates used as inputs in the business plan for job creation. Please refer to the input and multiplier analysis table above. When an actual project is specifically named in this notice and the critical inputs remain materially unchanged, USCIS will give deference to the job creation methodology when adjudicating Forms I-526 associated with the named project. The same business plan and the same reasonable job creation methodology and projected inputs must be submitted when the individual investor’s Form I-526 is filed in order to receive deference. It will be the responsibility of the individual investor to demonstrate that the assumptions and estimates presented as inputs to the job creation methodology remain materially unchanged when he or she files a Form I-526. When filing Form I-829 for removal of conditional status, the individual investor has the burden of demonstrating that the assumptions and estimates presented as inputs to the job creation methodology have not materially changed and have been realized (or can be expected to be realized within a reasonable time). If the job creation estimated in the business plan materially changes 01' will not be realized, then it will be the responsibility of the EB-5 investor to notify USCIS of an agreed upon methodology to allocate job creation among eligible investors. IV. Guidelines for Filing Form 1-526 Petitions
  • 14. Page 14 of 15 EB5 Express Regional Center RCW1118250239 / ID1118250239 Page 4 Each individual petition, in order to demonstrate that it is affiliated with the E135 Express Regional Center, in conjunction with addressing all the requirements for an individual immigrant investor petition, shall also contain the following: 1. A copy of this regional center approval notice and designation letter including all subsequent amendment approval letters (if applicable). 2. An economic impact analysis which reflects a job creation methodology required at 8 CFR § 204.6 (j)(4)(iii) and shows how the capital investment by an individual immigrant investor will create not fewer than ten (10) indirect jobs for each immigrant investor. 3. A comprehensive, detailed and credible business plan for an actual project that contains the factual details necessary to be in compliance with the requirements described in Matter of Ho, 22 1&N Dec. 206 (Assoc. Comm'r 1998). 4. Legally executed organizational documents of the commercial enterprise. Note: If the project timeline has changed significantly from the original business plan, a narrative that explains the changes in the project timeline, along with a timeline that realistically reflects the status of the project should be submitted. V. Designee’s Responsibilities in the Operations of the Regional Center As provided in 8 CFR 204.6 (m)(6), to ensure that the regional center continues to meet the requirements of section 610(a) of the Appropriations Act, a regional center must provide USCIS with updated information to demonstrate the regional center is continuing to promote economic growth, improved regional productivity, job creation, and increased domestic capital investment in the approved geographic area. Such information must be submitted to USCIS on an annual basis or as otherwise requested by USCIS. The applicant must monitor all investment activities under the sponsorship of the regional center and to maintain records in order to provide the information required on the Form I-924A Supplement to Form I-924. Form I-924A, Supplement to Form I-924 Application is available in the “Forms” section on the USCIS website at www.uscis.gov Regional centers that remain designated for participation in the Immigrant Investor Program as of September 30th of a calendar year are required to file Form I-924A Supplement in that year. The Form I- 924A Supplement with the required supporting documentation must be filed on or before December 29th of the same calendar year. The failure to timely file a Form I-924A Supplement for each fiscal year in which the regional center has been designated for participation in the Immigrant Investor Program will result in the issuance of an intent to terminate the participation of the regional center in the Immigrant Investor Program, which may ultimately result in the termination of the designation of the regional center. The regional center designation is non—transferable.
  • 15. Page 15 of 15 EB5 Express Regional Center RCW1118250239 / ID1118250239 Page 4 VI. Legal Notice This approval and designation of a Regional Center under the Immigrant Investor Program does not constitute or imply an endorsement or recommendation by USCIS, the United States Government or any instrumentality thereof, of the investment opportunities, projects or other business activities related to or undertaken by such Regional Center. Except as expressly set forth in this approval and designation, USCIS has not reviewed any information provided in connection with or otherwise related to the Regional Center for compliance with relevant securities laws or any other laws unrelated to eligibility for designation as a Regional Center. Accordingly USCIS makes no determination or representation whatsoever regarding the compliance of either the Regional Center or associated New Commercial Enterprises with such laws. Each Regional Center designated by USCIS must monitor and oversee all investment offerings and activities associated with, through or under the sponsorship of the Regional Center. The failure of an associated New Commercial Enterprise to comply with all laws and regulations related to such investment offerings and activities may result in the issuance by USCIS of a notice of intent to terminate the Regional Center designation. If the applicant has any questions concerning the regional center designation under the Immigrant Investor Program, please contact the USCIS by email at USCIS.ImmigrantInvestor@uscis.dhsgov . [Signature Stamp] Sincerely, Nicholas Colucci Chief, Immigrant Investor Program The major difference between the earlier and more recent Approval Notices is the absence of the foreboding almost threatening language about an impending de novo review and the inclusion of a discussion of what is needed to receive deference to the project(s) already reviewed. I welcome the change.

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