Boynton Beach Multifamily has received Form I-956F approvals from USCIS for its equity and loan offerings. This approval means that USCIS has reviewed the project documents of this compelling urban project and found both the EB-5 equity offering and the EB-5 loan offering to comply with the EB-5 program. Boynton Beach Multifamily is one of many EB5AN projects that have received Form I-956F approvals in record time.
Download Form I-956F Exemplar Approval Notice for Boynton Beach Multifamily (Equity)
Download Form I-956F Exemplar Approval Notice for Boynton Beach Multifamily (Loan)
This article explains what Form I-956F approval is, why project approval matters, and how it impacts investors in Boynton Beach Multifamily.
Form I-956F Basics
Why Form I-956F Approval Matters
How Form I-956F Approval Impacts EB-5 Investors in Boynton Beach Multifamily
- USCIS Accepted the Urban TEA Status of the Boynton Beach Multifamily Project
- USCIS Accepted the Project’s Job Creation Calculation
- USCIS Accepted the Loan Offering’s Security
Boynton Beach Multifamily Investment Offerings Are Open to EB-5 Investors
Form I-956F Basics
Form I-956F, Application for Approval of an Investment in a Commercial Enterprise, was introduced under the EB-5 Reform and Integrity Act of 2022 (RIA). United States Citizenship and Immigration Services (USCIS) uses this form to gather key details about EB-5 projects.
The Form I-956F filing must include a wide range of information about the EB-5 project, the people and entities involved, and the impacts the project will have. Following is a list of items that must be addressed in the Form I-956F filing:
- location of project
- targeted employment area (TEA) qualification
- expected amount of EB-5 capital to be invested
- entities involved in the project
- the project’s developer
- the company that will operate the project, if applicable
- the project’s regional center sponsor
- the fund administrator
- marketing representatives, if any
- details about people who have authority to make decisions about EB-5 funds
- impact of the project on the economy by industry
- number of EB-5 jobs expected to be created
Every EB-5 project must file Form I-956F. Typically, the project’s regional center sponsor files this form. The form must be submitted before any EB-5 investors can file their Form I-526E immigrant petitions.
The project application does not have to be approved for EB-5 investors to file their Form I-526E petitions. Once the Form I-956F is received by USCIS, investors can file their immigrant applications.
Why Form I-956F Approval Matters
While Form I-956F approval is not needed for EB-5 investors to invest in a project and file their immigrant petitions, approval is important. First, Form I-956F approval is needed for the project and its EB-5 investors to succeed. Second, Form I-956F approval gives EB-5 investors confidence in the project.
Form I-956F Approval Is Needed for Success
Under the RIA, Form I-956F approval is simply required for a project to succeed. Until the Form I-956F is approved, no EB-5 investor’s Form I-526E will be approved. And if a project’s Form I-956F is denied by USCIS, the project’s EB-5 investors’ immigrant petitions will likewise be denied.
Form I-956F Approval Gives Investors Confidence
EB-5 investors want to invest with confidence. Since their main goal is to get a Green Card, they want to know that the project complies with the EB-5 program. A regional center’s track record is a great indicator of how likely USCIS is to approve a project. But the best indicator of a compliant project is a Form I-956F approval notice. A formal approval notice from USCIS removes all doubt.
Form I-956F approval shows EB-5 investors that USCIS has reviewed and accepted the key elements of the EB-5 project. These key elements include the following:
- EB-5 investment structure
- EB-5 investment security
- The business plan, capital stack, and any bridge financing
- The job creation calculation methodology and estimate
- The project location’s TEA status
EB-5 investor petitions are judged on two basic components: project qualifications, and personal qualifications. By approving a project’s Form I-956F, USCIS is saying that the project qualifies for the EB-5 program. After this, USCIS just has to review the personal qualifications of the project’s EB-5 investors. If an EB-5 investor is admissible into the United States and his or her source of funds is legal, USCIS should approve his or her Form I-526E.
How Form I-956F Approval Impacts EB-5 Investors in Boynton Beach Multifamily
USCIS has approved Form I-956F for both the equity and loan offerings of Boynton Beach Multifamily. This approval means that USCIS has reviewed each feature of these offerings and found them to be compliant with the EB-5 program.
USCIS Accepted the Urban TEA Status of the Boynton Beach Multifamily Project
The project’s Form I-956F filing included a TEA qualification report. By approving Form I-956F, USCIS accepted the conclusions of this report—that the project is in an urban TEA.
With urban TEA status confirmed, EB-5 investors can have confidence that the investment amount of $800,000 will qualify them for EB-5 visas. Investing in an urban TEA project also grants investors access to the high-unemployment visa category. Each year, 10% of all EB-5 visas are set aside for investors who invest in urban TEA projects.
USCIS Accepted the Project’s Job Creation Calculation
Boynton Beach Multifamily is a major development project that is expected to create 859 jobs—far more than are needed to meet the requirement of 10 jobs per EB-5 investor. With vertical construction underway, these jobs are already being created.
Job creation is calculated from spending through a model called RIMS II. By approving Form I-956F, USCIS has accepted the project’s job creation calculations. This means less immigration risk for EB-5 investors.
EB-5 investors can invest with confidence knowing that USCIS has already reviewed and approved the job creation numbers. As long as spending happens according to plan, each EB-5 investor will be credited enough jobs to obtain a permanent Green Card.
USCIS Accepted the Loan Offering’s Security
The Boynton Beach Multifamily EB-5 loan is secured by a repayment guaranty. By approving Form I-956F, USCIS has reviewed and approved this secured loan structure.
Most EB-5 loan projects do not offer any kind of loan security. Even fewer offer loan repayment guaranties. In the past, some in the industry have even claimed that loan repayment guaranties are not allowed. But EB5AN has a long list of USCIS approvals for secured EB-5 loan projects. The Boynton Beach Multifamily loan offering is one more example of how, when structured properly, loan repayment guaranties are allowed.
With a loan repayment guaranty from a diversified parent company of the developer, EB-5 investors face significantly less financial risk. The guaranty is backed by the guarantor’s substantial assets and net equity. If the developer fails to repay the loan for any reason, the guarantor will be obligated to step in—and it has the means pay back the entire balance of the loan.
Boynton Beach Multifamily Investment Offerings Are Open to EB-5 Investors
Boynton Beach Multifamily is a 210-unit apartment complex for active adults age 55+ in Boynton Beach, Florida. The project meets the growing demand for housing in the area among affluent retirees. No active adult properties are found within five miles of the project site, and none are planned. As a result, the project has little competition.
The project is being developed by Kolter Multifamily, a division of the Kolter Group. Kolter is an experienced developer with an excellent track record. Since its founding in 1997, Kolter has never failed to complete a project.
Kolter has worked with EB5AN on over 15 EB-5 projects. All EB-5 investments in Kolter projects have either been repaid or are in good standing.
Once complete, the project is expected to be operated by Greystar, a leading property manager.
The Boynton Beach Multifamily urban TEA project offers EB-5 investors two great options. Investors can choose between an equity investment with higher returns and a loan offering with a repayment guaranty and clear loan term.
The EB-5 investment offerings for Boynton Beach Multifamily share many best-in-class features:
- urban TEA status
- Form I-526E approval refund guaranty
- job creation guaranty
- independent EB-5 oversight
- third-party fund administration
The equity offering has a preferred return structure with a 5.0% annual return. The target investment deadline is 3.75 years.
The loan offering has a loan repayment guaranty and a short three-year loan term.
A limited number of investment slots remain available for both Boynton Beach Multifamily EB-5 offerings. All investment slots are expected to be sold soon.
Schedule a one-on-one call today for more information about and to learn how you can make an EB-5 equity or loan investment in the Boynton Beach Multifamily EB-5 project.
