1. Palisades China Group Palisades Consulting Group, Inc. Foreign Investment in American Enterprises: The “EB-5 Immigrant Investor Program” Presented by Eva Lerner-Lam, President Palisades Consulting Group, Inc. at The 2012 New Jersey Women’s Entrepreneurship Series The Westin at Forrestal Village, Princeton, NJ February 23, 2012

2. Palisades China Group Palisades Consulting Group, Inc. Overview Traditional sources of capital “New” source: United States Citizenship and Immigration Service (USCIS) Immigrant Investor Program (EB-5 Visa) Current Status of the Program Pros and Cons How to Get Started Recommendations

3. Palisades China Group Palisades Consulting Group, Inc. Traditional Sources of Capital Savings Family and Friends “Angels” Venture Capital Funds

4. Palisades China Group Palisades Consulting Group, Inc. USCIS Immigrant Investor Program “EB-5,” created by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors All EB-5 investors must invest in a new (since Nov. 29, 1990) or distressed commercial enterprise Must create or preserve for 5 years at least 10 full-time jobs for qualifying U.S. workers The minimum qualifying investment in the United States is $1 million (or $500,000 in a high- unemployment area (Targeted Employment Area (TEA)) or rural area)

5. Palisades China Group Palisades Consulting Group, Inc. Current Status Although not new, the EB-5 Program is growing exponentially due to increasing wealth and global sophistication of the middle class in China and awareness by American cities and towns Process is undergoing rapid change toward more flexibility—and accountability--for investors and enterprises Mostly “small” individual investors at $500,000 level

6. Palisades China Group Palisades Consulting Group, Inc. Scale From FY92 through June 2004, immigrant entrepreneurs who completed the EB-5 benefit requirements and attained permanent legal residency invested about $1 billion. --US Government Accountability Office, April 2005

7. Palisades China Group Palisades Consulting Group, Inc. Pros and Cons Pros: – Substantial cash is available from foreign investors – Small investor to small entrepreneur = same playing field Cons: – “Wild West” conditions for the foreseeable future – Rapid growth is spawning new, unproven “experts”

8. Palisades China Group Palisades Consulting Group, Inc. How To Get Started Prepare documentation that would qualify your enterprise as “new” or “distressed” Attend EB-5 Forums to meet agents, attorneys and individual investors

9. Palisades China Group Palisades Consulting Group, Inc. Recommendations Read up on EB-5 Immigrant Investor program at the official USCIS website: http://www.uscis.gov/eb-5-investor (Regulations: 8 CFR 204.6 and 8 CFR 216.6) http://www.uscis.gov/eb-5-investor Visit your state congressional representative for latest updates on what NJ is doing to facilitate the EB-5 Immigrant Investor Program Choose your attorney wisely

10. Palisades China Group Palisades Consulting Group, Inc. Thank you! This presentation available at: palisadesgroup.com Eva Lerner-Lam elernerlam@palisadesgroup.com