Saltaire St. Petersburg EB-5 Project Receives Multiple Form I-956F Exemplar Approvals from USCIS

In the past few months, EB5AN has received five Form I-956F project exemplar approvals for three separate projects. We are one of the few companies with this many projects approved under the new EB-5 rules.

One of these projects is Saltaire St. Petersburg, a highly successful luxury condominium development in St. Petersburg, Florida. Saltaire St. Petersburg has received multiple Form I-956F approvals from USCIS. These approvals mean that USCIS has reviewed the offering documents for multiple phases of EB-5 investment and found the project to be compliant with all EB-5 program rules and requirements.

This article explains what I-956F approval is, why it is significant, and what it means for EB-5 investors in Saltaire St. Petersburg.

What Is Form I-956F Approval?

Under the EB-5 Reform and Integrity Act of 2022 (RIA) all EB-5 projects are required to file a Form I-956F application. EB-5 investors cannot submit their Form I-526E immigrant petitions until after a project has filed Form I-956F.

Form I-956F gives USCIS information about an EB-5 project. The application provides USCIS with project details, including the following:

• the project’s location
• evidence of being in a targeted employment area (TEA)
• the amount of EB-5 capital expected to be invested in the project
• information on entities involved in the project, such as the developer and/or operator, the regional center sponsor, the EB-5 fund administrator, marketing representatives, and more
• background information on everyone with substantive decision-making authority with regard to EB-5 funds
• the industries impacted by the project
• the estimated job creation of the project

Why Is I-956F Approval Significant?

Ultimately, an I-956F application must be approved for a project to succeed.

Once a project’s I-956F application has been filed with USCIS, it is allowed to take EB-5 investments. While an experienced regional center should be able to structure a compliant EB-5 offering, I-956F approval confirms the project and gives EB-5 investors greater confidence.

A regional center cannot guaranty that USCIS will approve Form I-956F. Only an approval notice can remove doubts about whether a project complies with current EB-5 rules.

Form I-956F approval is significant because it means USCIS has accepted the project’s key details.

• the EB-5 investment structure
• any proposed bridge financing
• investment security (e.g., repayment guaranty, equity cushion, etc.)
• the economic report’s job creation calculation
• rural or urban TEA designation

Once Form I-956F is approved by USCIS, all project documentation is effectively pre-approved for EB-5 investors. This means that EB-5 investors in approved projects should expect their Form I-526E applications to be approved, too, unless USCIS finds an issue in his or her source of funds or personal qualifications. In other words, if an EB-5 investor is not a criminal and can show that his or her investment money was earned legally, then he or she will receive Form I-526E approval and a Green Card.

As a result, once Form I-956F is approved for a project, the project’s EB-5 investors can expect their I-526E applications to be more quickly adjudicated.

What Does I-956F Approval Mean for Investors in Saltaire St. Petersburg?

Saltaire St. Petersburg was a highly successful EB-5 project. The EB-5 investment was structured as a secured loan, was located in an urban TEA, and featured a large surplus of EB-5 jobs. By approving multiple I-956F applications for Saltaire St. Petersburg, USCIS has reviewed and accepted the loan structure, urban TEA designation, and job creation method.

USCIS Accepted Saltaire St. Petersburg’s Secured Loan Structure

Some in the EB-5 industry suggest to prospective EB-5 investors that a secured loan structure is not allowed by USCIS. But secured EB-5 loans are allowed. Saltaire St. Petersburg is proof that this is true. Two phases of this project, both structured as secured loans, have been approved by USCIS.

USCIS Accepted Saltaire St. Petersburg’s Urban TEA Status

By approving Saltaire St. Petersburg’s Form I-956F, USCIS has indicated that it agrees that the project is in an urban TEA. The project’s investors can have confidence that their $800,000 investment will qualify under the EB-5 visa program.

This approval also means that EB-5 investors in Saltaire St. Petersburg have access to the EB-5 visa category set aside for urban investments. The urban EB-5 visa set aside makes up 10% of all EB-5 visas and is current for all countries. Chinese and Indian EB-5 investors currently face no backlog for urban EB-5 investments.

USCIS Agreed with the Project’s Job Creation Numbers

Saltaire St. Petersburg is a major development project. Construction spending resulted in more than 2,300 jobs. The project created far more jobs than needed for all EB-5 investors to meet the job creation requirement of the EB-5 program.

Job creation was calculated using an econometric methodology called RIMS II. This means that the number of jobs created by the project was calculated from how much was spent on qualifying costs. With Form I-956F approved for Saltaire St. Petersburg, USCIS accepted the job creation as reported.

While Saltaire St. Petersburg has already created more jobs than are needed for all EB-5 investors, USCIS will not finally adjudicate actual job creation until EB-5 investors file their Form I-829 applications. This application is used to remove the conditions from EB-5 investors temporary Green Cards and is the last step in the EB-5 process. But EB-5 investors in Saltaire St. Petersburg can have confidence that they will be credited with enough jobs because far more jobs than necessary were already created at the time the I-956F applications were approved by USCIS.

The approved job calculation method and significant job creation means significantly less immigration risk for EB-5 investors in Saltaire St. Petersburg.

Saltaire St. Petersburg EB-5 Investors Will Enjoy Faster Petition Processing

With the I-956F petition approved, Saltaire St. Petersburg’s EB-5 investors will now enjoy a faster path to having their I-526E applications reviewed by USCIS. All details about the project have been reviewed and accepted by USCIS. When the USCIS adjudicator reviews an I-526E petition for an investor in this project, the adjudicator will defer to the project’s I-956F approval. The only part of the investor’s application that will need to be reviewed is his or her personal qualifications.

Saltaire St. Petersburg Is Closed, but EB5AN Has Other Similar Low-Risk Projects

Saltaire St. Petersburg has been successfully completed and is no longer accepting EB-5 investments. EB5AN has, however, partnered with the same developer, Kolter, on a number of other best-in-class EB-5 projects.

One such project is Boynton Beach Multifamily, which is currently offering both equity and debt investments. Boynton Beach Multifamily is a 210-unit apartment community for active adults age 55+. The project is located in an urban TEA. Boynton Beach Multifamily (Equity) offers EB-5 investors an above-market 5% preferred return and shorter target investment period. Boynton Beach Multifamily (Loan), on the other hand, offers a secured loan structure with a short three-year loan term.

Twin Lakes Georgia is another top-tier EB-5 investment offered by EB5AN and Kolter. Twin Lakes Georgia is a 1,300 single family home community located in a rural TEA near Atlanta, Georgia. This is an excellent project from an investment perspective. Sales to date are phenomenal with over 600 homes already sold, and the project is already profitable. Like Saltaire St. Petersburg, multiple phases of Twin Lakes Georgia have received Form I-956F approval.

The developer of these projects, Kolter, is one of the top 25 private home builders in the United States. Kolter has a perfect track record of completing projects and repaying loans over the last 25+ years.

If you are interested in investing in a lower-risk, high-quality EB-5 project, schedule a one-on-one call today.