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The EB-5 visa offers foreign nationals a chance to obtain permanent residency by investing in U.S. businesses. They can invest directly in a specific business that will create jobs or through approved regional centers. However, applying for an EB5 visa is super complex and a high-stakes path, especially since you are investing $800K–$1.05 M and seeking a green card. Alina Kats can make your EB5 visa process smooth and quick. With her experience as an immigration attorney, she provides strategic guidance and helps you choose the best investment route to avoid pitfalls and increase your chances of success.
The EB5 is an immigrant classification visa that grants permanent residence status to qualified foreign investors, their spouses, and unmarried children under the age of 21. It allows foreign investors to obtain a US green card or permanent residency by investing in a US business that creates jobs for American workers. It is an employment-based visa, and investors who satisfy certain investment criteria get the freedom to live, work, and retire anywhere in the US.
This program was established by Congress in 1990 to support economic growth, stimulate job creation, and attract capital investment by offering investors and their families a chance to live, work, and study in the US without company sponsorship or a complex renewal process. It is a great immigration option for foreign investors if they can satisfy the EB5 requirements.
Read on to learn more about the EB5 visa program, its requirements, and what important points you need to keep in mind if you are considering this option.
As an EB5 investor, you must invest in a new commercial business or enterprise that yields profits as a result of lawful activities. For-profit enterprise means that the purpose of said business should be to generate a profit. Non-profit businesses do not qualify for this type of visa.
As an investor, you have two options:
Each of these options comes with its pros and cons. The type of investment you make will depend on your specific situation and business goals.
EB5 investors are required to invest a minimum of $1,050,000 in the new commercial enterprise. However, this amount can be reduced to $800,000 if you invest in a targeted employment area that has an unemployment rate of at least 150% of the national average or rural areas.
Rural areas are defined by the Immigration and Nationality Act as areas that are not located within any metropolitan statistical area (MSA) and not located within any city or town with a population of 20,000 or more. Due to their restrictive nature, most TEAs have high unemployment rates.
In the current economic situation, the number of TEA areas is higher. Your attorney can help you learn more about TEA areas, determine the area of your intended business and invest in a rural area.
You must create 10 full-time jobs for qualified workers in the US. They could be US citizens, lawful permanent residents, or other immigrants who have the documentation and authorization to work for your business. People with non-immigration status are not considered US workers.
Full-time means that employees must work at least 35 hours per week. Two part-time jobs do not count as one full-time job.
Two types of jobs may qualify for an EB5 visa
An important part of the job creation requirement is to know what kinds of jobs count. One big difference between regional centers and direct investments is that regional centers can count direct jobs, indirect jobs, and inducted jobs. Direct investments can only count the direct jobs created.
The funds that you plan to invest in a commercial project must come from a lawful source. You will need to prove that this money has been earned legitimately.
The investment capital can come from different sources, including:
You need to show USCIS exactly how you earned the money to invest. Showing the path of funds is an equally important requirement that must be fulfilled. You must also provide complete documentation or receipts to show how you acquired this money. An immigration lawyer can help you do this and complete the relevant paperwork.
You must place your funds at risk to generate a profit. To satisfy this requirement, your investment funds must be subject to total loss or gain. Remember, you cannot just show an intent to invest with no present commitment. An actual commitment to investing the required amount of capital is mandatory.
To meet the actual commitment standard, you can place your funds in an escrow account and set a condition for disbursement of funds on approval of your Form I-526 and visa issuance or successful adjustment of status. There are no guaranteed returns on your investment, as it would contradict the at-risk requirement. You also cannot demand a return on any portion of your investment or redeem any part.
As an EB5 investor, you need to take an active part in managing your business instead of being a passive investor.
You can do this in two ways:
You can satisfy this requirement by proving you can handle the management and provide a statement of your title within the new commercial enterprise along with details of your duties. If the new commercial enterprise is structured as a corporation, you can provide sufficient management by providing evidence of your capabilities.
In case the new commercial enterprise is a limited partnership, you can demonstrate sufficient management as a limited partner by showing the rights, powers, and duties normally granted to limited partners.
If you think an EB5 visa is the right option for you, take some time to learn about its requirements to ensure you get the opportunity to get a green card for you and your family by investing in a business.
The process of applying for an EB5 visa starts with the submission of Form I-528.
Along with the form, the applicant should collect the following evidence which shows:
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Once the Form I-526 is approved, the applicant can start the process for green card application. This process can vary depending on the specific situation of the investor. If the investor lives abroad, they will need to go through consular processing, which involves filing Form DS-260, also known as the Application for Immigrant Visa and Alien Registration, and undergo a medical exam.
They will also have to appear for an interview at the US embassy or consulate along with the required documents. If the applicants are already in the United States, they will go through the Adjustment of Status process, for which they will have to file Form I-485 and attend an interview.
If everything goes well, the applicant and their family members will receive a conditional green card, which will be valid for 2 years.
After the two-year period is over, the applicant will have to apply for removal of conditions from their green card. For this, they will need to file Form I-829, also known as the Petition by Investor to Remove Conditions on Permanent Resident Status, at least 90 days before the green card expires. They also need to submit the necessary paperwork related to their commercial enterprise, including information about the number of people employed, the location of the business, and the capital invested in the business.
After the conditions are removed, the applicant is granted lawful permanent residence. This means their green card is valid for the next 10 years.
The EB5 visa program offers eligible investors a chance to become permanent residents in the United States, having the right to travel freely between countries, and accessing some of the best educational and healthcare systems in the world.
Kats Immigration Law is a full-service immigration law firm in Brooklyn, providing great legal expertise, support, and a client-focused approach, including complete handling of EB5 visa petitions. Alina Kats guides you every step of the way and helps you think about the opportunity to build a bright future in the United States with confidence. She specializes in aiding investors like you navigate the complex requirements of the EB5 visa program with clarity, ensures your funds are thoroughly documented, and your petition meets all US immigration standards.