About AII Funds
The EB-5 program was created by Congress in 1990 as part of the United States’ Congress’ most recent comprehensive immigration policy update, called The Immigration Act of 1990 or IMMACT-90. Robert Lubin saw an opportunity, but realized the importance of assembling a skilled team to handle this new and complex area of law. EB-5 is cooperative effort that requires many experienced professionals in a wide range of fields. As an attorney with experience in immigration and business law, Mr. Lubin was – and still is – at the center of this team, which includes immigration attorneys, real estate developers, financial institutions, corporate attorneys, securities attorneys, economists, and overseas consultants, among others. Over the years, this team developed many projects and has an exceptional track record of I-526 approvals, I-829 approvals due to successful job creation, and the complete redemption of investor funds. Based on this strong track record, Mr. Lubin’s group coined the term “AII Funds” in 2014.
“this team developed many projects and has an exceptional track record…”
Mr. Lubin was one of the first attorneys to file an I-526 petition and organized six EB-5-funded projects in the 1990’s. At that time – and unrelated to Mr. Lubin – the EB-5 program was not really serving its intended purpose. America’s Immigration & Naturalization Service – which today is known at the U.S. Citizenship & Immigration Service (“USCIS”) – had regularly failed to enforce its own rules and both investors and developers were able to avoid meeting the requirements, while still getting green cards or access to capital. However, proper investments were not being made and jobs were not being created. Eventually, the USCIS realized this and the program was suspended temporarily. In the early 2000’s, the EB-5 program reemerged with new guidelines and regulations. However, at that time, EB-5 investment was not needed by project developers – the U.S. economy was booming and banks were willing to write huge loans based upon scant evidence.
Things changed in 2008, when America began experiencing what later became known as the “Great Recession.” In response to the collapse of the residential real estate market across the country, American banks have significantly tightened their lending requirements and alternative sources of financing quickly became necessary in order to move forward with projects. Banks were no longer prepared to issue developers loans for the overwhelming majority of a project’s value, preferring to return to the historic benchmarks in the 50-70% range. The shortfall between the needed amount and the amount available for a development is called a “funding gap.” EB-5 investment is one of several ways to fill this funding gap and reach the amount needed to complete a project. Creative developers like AII Funds can combine EB-5 investment with traditional senior debt complimented by additional developer equity and often funds from government incentives to assemble to the total amount necessary to acquire land and develop a successful project. This formula works – developers gain access to needed capital, EB-5 investors get green cards and eventually redeem their investments, and jobs are created, satisfying the USCIS and helping the American economy in still-turbulent times.