USA IMMIGRATION RESIDENCE

RESIDENCE BY INVESTMENT PROGRAMME EB-5

USA INTRODUCES INVESTMENT ROUTE

The United States EB-5 visa, employment-based fifth preference category[1] or EB-5 Immigrant Investor Visa Program, created in 1990 by the Immigration Act of 1990, provides a method for eligible Immigrant Investors to become lawful permanent residents — informally known as "green card" holders — by investing at least $1,000,000 to finance a business in the United States that will employ at least 10 American workers." Most immigrant investors who use the EB-5 program invest in a targeted employment area (TEA) — a rural area or area with high unemployment — which lowers the investment threshold to $500,000. The EB-5 program is intended to encourage both "foreign investments and economic growth". The EB-5 Immigrant Investor Visa Program is one of five employment-based (EB) preference programs in the United States.

Applicants have the choice of investing individually or they can choose to work through a "larger investor pool via regional centers (RC)", which are federally approved third-party intermediaries that "connect foreign investors with developers in need of funding, and take a commission". Regional centers are usually private, for-profit businesses that are approved by the U. S. Citizenship and Immigration Services (USCIS) hich is part of the Department of Homeland Security. By May 1, 2017, there were 883 USCIS-approved regional centers and by 2014 the "vast majority" of EB-5 visas were "granted through regional center(s)". By 2015 the EB-5 program had become an "important source of capital for developers" and for the regional centers. If an EB-5 investment is made in a regional center, the jobs may be created indirectly through economic activity, as opposed to a direct investment, where the investment vehicle must directly employ the 10 U.S. workers.

Most investors — about 80 percent — come from four countries: China, South Korea, Taiwan and the United Kingdom. Others have come from Canada, India, Mexico, Iran, and Japan In 2014 85% of the 10,692 EB-5 visas issued were for Chinese nationals according to a study, a "real estate services firm". On May 5, 2017, President Trump approved a renewal of the EB-5 Visa program as part of the first major piece of legislation of his administration, Bill H.R.244, which extended the spending bill—and Immigrant Investor Visa Program—through September 30, 2017.

Required EB-5 Investment Amount

EB-5 visa applicants must invest either $500,000 or $1 million in cash, equipment, property, or additional cash equivalent based on the U.S. dollar market value. The minimum investment can be reduced to $500,000 if your business is in a low cost or rural area or if the area has high unemployment.

EB-5 Visa Requirements Summary

$1 million capital investment, $500,000 in a TEA
The investment must be made in a for-profit U.S. commercial entity
The investment must create 10 full-time U.S. jobs for two years

EB-5 Investor Visa Application Process Overview

EB-5 visa applicants must follow three general steps to obtain U.S. permanent residency:

EB-5 visa applicants must follow three general steps to obtain U.S. permanent residency:
- Individual business that will create 10 direct fulltime U.S. jobs per investor (direct investment) OR
- In a USCIS-designated regional center where the investor may create 10 direct, indirect and/ or induced jobs per investor.
Upon I-526 approval, the investor submits their conditional permanent resident application either through the filing of an I-485, Application for Adjustment of Status, or DS-260, Application for Immigrant Visa. This is the petition that will confer the green card to the investor and his eligible dependents.
Lastly, the investors must prove that all EB-5 requirements have been met at the end of the two year conditional residency by filing the I-829 application to remove conditions of residency. The investor, their spouse, and their unmarried children under the age of 21 then become lawful permanent residents and receive their ten year green cards.

Step 1:

Determine the eligibility of the investor according to Regulation D of the U.S. Securities Act of 1933. This requires completing a personal questionnaire pertaining to investor finances.

Step 2:

Select the most ideal business opportunities from a list of available investments.

Step 3:

Select an immigration attorney that typically charges from $12,000 to $25,000, dependent on the complexity of the case.

Step 4:

Collect all of your supporting documents for the visa application. Your attorney will provide you with a list.

Step 5:

Submit the visa application via your immigration attorney. This will be an additional cost over the required minimum investment. You are paying for attorney’s fees, filing fees, and other expenses.

Step 6:

Start the investment management, in which you will get a status report on the project. At this time, start creating the required 10 full time jobs.

Step 8:

Attend an appointment with the U. S. embassy for an interview. This will occur after your application is approved. The consulate provides the documents you will need to submit to immigration once you arrive in the United States. You will then become the holder of a green card.

Step 7:

Sit tight as the application is in line at the USCIS. This can take eight to 18 months. The average timeframe is 15 months.

Step 9:

File a Form I-829, Petition by Entrepreneur to Remove Conditions on Permanent Resident Status. After you are approved, your conditional visa will be exchanged with a permanent green card. This only has to be renewed every 10 years.

Step 10:

Continue the investment and repay based on the terms

EB 5 Requirements: Everything You Need to Know

There are a number of EB 5 requirements that you need to know about if you want to enter the United States for investment purposes. 8 min read

EB 5 Requirements

There are a number of EB 5 requirements that you need to know about if you want to enter the United States for investment purposes. There are many stipulations that will allow you to get a green card for starting a business that benefits the American economy.

Required EB-5 Investment Amount

EB-5 Job Creation Requirements

EB-5 investors must create 10 full time employment opportunities for U.S. based workers within 24 months. For a business made with a regional centre, the investor has to show that the 10 full time jobs were made available

EB-5 Business Entities

A new commercial enterprise is a business that is established after Nov. 29,1990. The investor can consider investing in an enterprise already in existence by increasing the current net worth and number of employees. The increase must be at least 40 percent. After the reorganization, you can then turn it into a commercial enterprise.

The investor may also invest into the regional center that will help in the administration of the business.

Legitimate Source and Path of Funds

The USCIS is extremely strict in investigating where the funds or capital comes from for an investment. Any funds that are obtained in an illegal matter cannot be acknowledged. The USCIS also requires documentation of how the money was acquired.

Acceptable Types of Investment

An acceptable type of investment includes inventory, equipment, tangible property, cash, or any cash equivalent based on the United States dollar. Any money received from a loan to the business or debt of the business cannot be considered an investment.

An investment received from the rent of property, limited partnership, or other enterprises where the investor is not actively part of the management cannot be considered an investment.

The investor has to commit the whole amount of money before the expiration of the two-year conditional period.

Acceptable Types of Investment

Investment obtained from a rent of property, limited partnership or other enterprise in which the investor is not an active part of the management is not qualified as an investment.

Evidence Required For Investment Funds from an Applicant’s Own Income

Two or more years of banking records
Five years of personal income tax returns
Compensation statements
Certificate of employment
Five years of business income tax records
Proof of business ownership, such as a business license and registration
Legal proof of share ownership or certificate of incorporation

Evidence Required For Investment Funds From a Gift

Proof of fund transfer from the donor to the investor
Documentation of how and under what pretense the gift was given
Record of gift tax returns
Documentation showing the financial ability of the donor to give the gift
Documentation that shows the connection of the investor and donor
A death certificate showing the issuance of an inheritance
Proof that the investor paid tax on an inheritance
Statement showing the relationship of the descendent and investor that includes the amount of money left if there is little documentation showing a familial relationship

Evidence Required For Sale of a Business

Closing statement
Deeds
Bank accounts and statements
Documentation of the process from the closing transaction to the investor
Registration and proof of business ownership before and after a sale
Any correspondence discussing the sale, such as the price and information from the buyer’s accounting firm
Financial statements of the pre-sale worth of a business by a certified financial professional
Documentation showing the relationship of the buyer and seller of the business and their understanding of all terms and conditions
Proof of all fees and charges that are incurred while settling

Evidence Required For Sale of Real Estate

A document proving that the investor has access to the funds from the buyer
Proof that the investor has paid all real estate taxes
Proof that the investor has transferred the title of the business to the buyer
Income tax returns for five years showing the funds from the sale of the real estate

Evidence required for Sale of Stock

A certificate of incorporation and all legal business registration proof
Documentation of the agreement on the sale of the shares
Proof that earnings on the purchase of the stock is transferred to the investor’s account from the brokerage firm
Proof that all taxes has been paid pertaining to the stock sale
Documents showing that the shares have been bought and sold

Investment Funds From a Loan

Items needed for investment funds from a loan include the following:

Documents showing the agreement by both parties
Documents showing the transfer of the loan from a lender to an investor
The lender’s income tax return, either business or personal
Business license and registration

In addition, only the loan retained by the investor’s assets are considered eligible investment funds.

New Enterprise

A new enterprise is any business that is established after Nov. 29, 1990, or any business that is established after the reorganization of a company. Additionally, the company must have increased its net worth or number of employees by 40 percent.

Commercial Enterprise

A commercial enterprise is one that is made up from any profitable, lawful act that includes the following:

Sole proprietorship
Limited Partnership
General Partnership
Holding company
Joint venture
Corporation
Business trust
Or any publicly or privately owned entity

Eligibility of a Commercial Enterprise

Owning a personal residence is not for profit; therefore, it will not be considered a commercial enterprise. A subsidiary of a holding company that was designed to perform a business for profit is eligible.

Eligibility of an Investor

A corporation or other business is not eligible to be an investor in an EB-5 petition. The USCIS lets investors set up an NCE through a EB-5 as long as all investors in the group invests the required minimum investment. All involved have to invest the required minimum investment. All investors must also create 10 full time jobs for United States workers for a certain amount of time.

Troubled Business

A troubled business is one that has been operational for at least two years and having a 20 percent loss within the two years of acquisition.

The Importance of Choosing an Enterprise Wisely

Picking an appropriate business model is best for ideal management and tax purposes. EB-5 applicants must participate in the operation of the business either in a daily capacity or in the planning or policymaking aspect.

Types of Commercial Enterprises

A corporation is the most popular method of developing an enterprise. It is a separate legal entity from the owner or shareholder yet has the same legal rights. It exists as a legal entity and can hold, buy, and sell property in the name of the corporation. It will be unaffected in the event of a death of an officer or shareholder.

Some corporations will be subjected to double taxation where profit is taxed at a corporate and personal level.

A limited liability company combines the benefits of a corporation and a partnership with the option on the method of taxation via corporation or partnership. Limited partnership provides the partners are liable to the invested money.

Job Creation

Jobs created by the NCE institutes connected between the employer and the hired workers. Direct jobs are defined as those that established an employer an employee relationship between the NCE and those that are employed.

Indirect jobs are designed as opportunities that stem from the need of the business or the employees. They are ancillary to the business yet are created because the enterprise needed additional human resources.

Job conservation is still considered job creation for even a business in trouble. The investor needs to keep the same amount of employees for a minimum of 24 months.

Additional Considerations

Restriction of age has not been defined according to the USCIS. Rather, it is determined by each state in which the business is located.