General Information on EB-5 Program
The U.S. Immigrant Investor Program (EB-5) was founded
in 1990 to encourage the investment of foreign capital into the American
economy. This program makes it possible for an investor and his/her
family to obtain permanent residence (Green Card) in the United States
by either investing in the creation of a business or in the development
of an existing enterprise in the United States. If the investment
is made in an existing enterprise, it is required that the existing
enterprise was founded no earlier than November 29, 1990.
Each year, 10,000 EB-5 visas are available through the
program, 5,000 of which are reserved for investors who participate
in the Regional Center projects approved by the United States
Citizenship and Immigration Services (USCIS).
Eligibility Requirements for an EB-5 Visa
- An investor must have sufficient capital to do one
of the following:
- create an original business;
- purchase an existing business and simultaneously
or subsequently restructure or reorganize the business such that a
new commercial enterprise results;
- expand an existing business by 140 percent of the
pre-investment number of jobs or net worth;
- or retain all existing jobs in a troubled
business that has lost 20 percent of its net worth over the past
12 to 24 months;
- Invest at least $1 million in a new commercial
enterprise ($500,000 for Regional Center projects);
- Create full-time employment for no fewer than 10
qualified individuals;
- Maintain the number of existing employees at no
less than the pre-investment level for a period of at least two
years.
Note: Members of the investor?s family may work
for the new enterprise, but they cannot be considered as one of the 10
qualified individuals required for eligibility for the EB-5. Full-time
employment requires a minimum of 35 work-hours per week.
In addition, we encourage our clients to consider the
possibility of investing through one of the structured Regional Center
projects. However, we will be happy to help our clients with any project
that may interest them.
Investment through the structured Regional Center
projects allows investors to obtain an EB-5 visa without having to
directly participate in the creation and management of a new commercial
enterprise. This so-called "passive investment" can be a much cheaper
and convenient alternative.
Process Overview of the EB-5 Visa
- A qualified investor, spouse, and minor children
(under 21) will be granted conditional U.S. Lawful Permanent
Residency (Green Card);
- After two years, the immigrant investor applies to
have the conditional status removed;
- An immigrant investor is not required to manage
the investment on a daily basis.
Requirements for the EB-5 Visa Programs
The investor must be able to do the following:
- Present a large amount of investment capital;
- Present a detailed business plan for the
development of a company;
- Prove that the investment comes from a lawful
source of funds;
- Create the requisite number of jobs;
- Demonstrate active participation in the management
of the enterprise;
- If the investment is not profitable, the investor
cannot reduce the number of employees to less than the required
amount;
- Satisfy general eligibility requirements for a
visa (e.g., medical).
After two years, the USCIS will conduct an
investigation to see if the investor has fulfilled all his obligations.
In the event that the investor failed to fulfill the conditions of the
program, the investor and any family members may be refused permanent
residence.
Benefits of Investing in the Regional Center Projects
- Projects are already USCIS-approved and therefore
the investor does not have to worry about presenting a business
plan and meeting certain requirements;
- The minimal required investment is $500,000, as
opposed to $1 million for independent projects;
- The investor can play a passive role in his
investment and does not have to directly participate in the daily
management of the enterprise;
- Projects possess the potential for development and
long-term profit and returns on investment;
- The capital for the investment is usually
maintained in an escrow account during the visa application
process. In the event that the investor is denied an immigration
visa, the full amount of his/her investment is returned minus
administrative expenses.
How to Obtain an EB-5 Visa
In order to seek status as an immigrant investor, you
must file CIS Form I-526 Immigrant Petition by Alien Entrepreneur. Form
I-526 must be submitted with supporting documentation which clearly
demonstrates that the individual?s investment meets all USCIS
requirements. The petition should be filed with the USCIS Service
Center that has jurisdiction over the area in which the new commercial
enterprise will be primarily doing business. Upon approval of the
petition, if the investor is in the United States, he/she may apply for
Adjustment of Status to Conditional Resident status. If the investor
is abroad, he/she must wait for notification from the National Visa
Center to prepare for the immigrant visa interview at the U.S. Embassy
or Consulate in the investor?s country of residence.
How Our Partnership Law Offices Can Help
The qualified and experienced lawyers we partner with can provide full legal support to
clients interested in obtaining an EB-5 visa. With more than 20 years of
experience with the EB-5 program, they can help our clients meet all the
legal requirements of the program. Services include:
- Providing comparative information and analysis on
various Regional Center projects;
- Assessing preliminarily whether an investor will
qualify under the EB-5 program;
- Counseling the client to ensure that he/she
understands all aspects of the EB-5 program;
- Interacting with the client to best prepare the
case: gathering needed documentation, completing all application
forms, translating all required documentation into English;
- Representing the client at both the USCIS and
consulate stages of the process to ensure the most prompt and
beneficial review of the application;
- Representing the client at the condition removal
stage of the process.