Kutak Rock attorneys Robert Ahrenholz and Mariza McKee published a post, “New SEC Interpretations Regarding Accredited Investors Impact EB-5 Reg D Offerings,” for the Association to Invest in the USA (IIUSA) blog on August 11, 2014. IIUSA is the industry trade organization for the EB-5 Regional Centers.
Congress established the EB-5 program in 1990 to create jobs and to attract investment capital. Under the EB-5 program, which is administered by the U.S. Citizenship and Immigration Services (USCIS), immigrant investors who make the required minimum investment in a new commercial enterprise may receive conditional permanent residence in the U.S. for themselves, their spouses and their children under age 21. If the immigrant investor satisfies the statutory and regulatory requirements of the EB-5 program, which includes creating ten new jobs per investment, the conditions are removed and the immigrant investor and their family may become unconditional lawful permanent residents of the U.S.
In the article, Ahrenholz and McKee carefully explain the new interpretations, which detail how to analyze a potential foreign investor’s accredited status. These new interpretations are of particular importance to the EB-5 community because they apply to non-U.S. persons.
To read the entire post, please click here.
Ahrenholz focuses his practice on corporate finance, securities, structured finance and securitizations representing issuers, investment bankers and others in a variety of transactions. Ahrenholz serves as lead counsel to issuer and investment banking clients in public and private financing transactions, as well as to registered investment companies and other investment vehicles.
McKee focuses her practice on structuring, negotiating and documenting EB-5 financings. She counsels regional centers, private equity funds, developers, lenders, borrowers and community development agencies that manage or are otherwise involved with domestic and international equity offerings seeking EB-5 investment.