Allocation of Immigrant Visas (F) Business Plans for Regional Center Investments

(i) Application for Approval of Investment in a Commercial Enterprise

A regional center must submit an application to the Secretary of Homeland Security for each specific investment offering through an associated new commercial enterprise before any alien files a petition for classification under this paragraph based on investment in that offering. The application shall include: (I) a comprehensive business plan for a specific capital investment project; (II) a credible economic analysis regarding estimated job creation based on economically and statistically valid methodologies; (III) documents filed with the Securities and Exchange Commission under the Securities Act of 1933 (15 U.S.C. 77a et seq.) or with the securities regulator of any State, as required by law; (IV) investment and offering documents, including subscription, investment, partnership, and operating agreements, private placement memoranda, term sheets, biographies of management, officers, directors, and any person with similar responsibilities, the description of the business plan provided to potential alien investors, and marketing materials used or drafts prepared for use in connection with the offering, containing references to: (aa) all material investment risks associated with the new commercial enterprise and the job-creating entity; (bb) any conflicts of interest among the regional center, the new commercial enterprise, the job-creating entity, or the principals, attorneys, or individuals responsible for recruitment or promotion; (cc) any pending material litigation or bankruptcy, or material adverse judgments or bankruptcy orders issued during the most recent 10-year period in the United States or another country, affecting the regional center, the new commercial enterprise, any associated job-creating entity, or any other enterprise in which any principal of any of the aforementioned entities held majority ownership at the time; and (dd)(AA) any fees, ongoing interest, or other compensation paid or to be paid by the regional center, the new commercial enterprise, or any issuer of securities intended for alien investors to agents, finders, or broker-dealers involved in the offering of securities to alien investors; (BB) a description of the services performed or to be performed by such a person to entitle the person to such fees, interest, or compensation; and (CC) the name and contact information of any such person if known at the time of filing;

(V) policies and procedures, such as those related to internal and external due diligence, reasonably designed to ensure compliance with U.S. securities laws and the laws of applicable states in connection with the offer, purchase, or sale of securities; and (VI) a certification from the regional center and any issuer of securities intended for alien investors that their respective agents and employees, and any parties associated with the regional center and such issuer of securities affiliated with the regional center, are in compliance with U.S. securities laws and the laws of applicable states in connection with the offer, purchase, or sale of securities, to the best of the certifier's knowledge after a due diligence investigation.

(ii) Effect of Approval of Business Plan for an Investment in a Regional Center's Commercial Enterprise

The approval of an application under this subparagraph, including approval before the enactment of this subparagraph, shall be binding for adjudication of subsequent petitions seeking classification under this paragraph by immigrants investing in the same offering described in such application. It also applies to petitions by the same immigrants filed under section 1186b of this title, unless: (I) the applicant engaged in fraud, misrepresentation, or criminal misuse; (II) such approval would threaten public safety or national security; (III) there has been a material change affecting eligibility; (IV) the discovery of other evidence affecting program eligibility was not disclosed by the applicant during the adjudication process; or (V) the previous adjudication involved a material mistake of law or fact.

(iii) Amendments

(I) Approval The Secretary of Homeland Security may establish procedures by which a regional center may seek approval of an amendment to an approved application under this subparagraph, reflecting changes specified by the Secretary to any information, documents, or other aspects of the investment offering described in the approved application not later than 30 days after any such changes.

(II) Incorporation Upon approval of a timely filed amendment to an approved application, any changes reflected in such amendment may be incorporated into and considered in determining program eligibility through adjudication of: (aa) pending petitions from immigrants investing in the offering described in the approved application who are seeking classification under this paragraph; and (bb) petitions by immigrants described in item (aa) that are filed under section 1186b of this title.

(iv) Site Visits

The Secretary of Homeland Security shall: (I) perform site visits to regional centers not earlier than 24 hours after providing notice of such site visit; and (II) perform at least 1 site visit to each new commercial enterprise or job-creating entity, or the business locations where any claimed jobs are created, as applicable.

(v) Parameters for Capital Redeployment

(I) In General The Secretary of Homeland Security shall prescribe regulations, in accordance with the Administrative Procedure Act, allowing a new commercial enterprise to redeploy investment funds anywhere within the United States or its territories to maintain investors' capital at risk if: (aa) the new commercial enterprise has executed the business plan for a capital investment project in good faith without a material change; (bb) the new commercial enterprise has created a sufficient number of new full-time positions to satisfy the job creation requirements of the program for all investors, either directly or indirectly, as evidenced by the methodologies set forth in this chapter; (cc) the job-creating entity has repaid the initially deployed capital in conformity with the business plan; and (dd) the capital, after repayment by the job-creating entity, remains at risk and is not redeployed in passive investments, such as stocks or bonds.

(II) Termination The Secretary of Homeland Security shall terminate the designation of a regional center if the Secretary determines that a new commercial enterprise has violated any of the requirements under subclause (I) in the redeployment of funds invested in

Leave a comment!

Your email address will not be published. Required fields are marked *