An EB-5 Visa - The Fastest, Easiest Way to a Green Card?

Definition of the EB-5 Regional Center Investor Program

The EB-5 investor visa Pilot Program expires on September 30, 2008 so if this visa is of interest it is necessary to act sooner rather than later.

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The EB-5 Visa appears to provide one of the most flexible paths to a green card based on a US investment. The EB-5 visa does not require the applicant to manage the day-to-day affairs of a business. One may invest in an existing business, or a new business. More than one person may invest in the same business. The EB-5 investor may be a minority owner of the business.


Of the 10,000 investor visas (i.e., EB-5 visas) available annually, 5,000 are set aside for those who apply under a pilot program involving an INS-designated "Regional Center." To date, the quota has not been exceeded.


Q: Who should invest?

EB-5 investors include people from all walks of life; professionals, business people, persons wanting to facilitate a child's education, and retirees. The EB-5 visa permits employment in the USA. Simply put, the EB-5 visa gives you the flexibility to do what you want in the USA.

If you don't want to actively manage your business, you should consider EB-5. If your goal is to have a green card and not to actively manage a business, it is most often cheaper to utilize the EB-5 category rather than to start and maintain a business.


Q: What documents must be prepared to process my visa petition?

A complete biographical information for each applicant and the principal applicant must prove the source of the investment funds. To prove the source of investment funds, INS requires five years of tax returns, five years of bank records, proof of ownership in any businesses, financial statements for each business and business licenses. If your capital came from a specific transaction, such as sale of a house, inheritance or gift, you must prove the transaction occurred, by providing an official document, such as a closing statement or contract or other official documents. This is not an exhaustive list. Other documents may be required and vary on a case-by-case basis.


Q: How long does INS take to process my visa petition?

You should plan for the entire process to take between nine to fifteen months.


Q: What are the processing procedures?

A general outline of the application process follows.

Step 1) File form I-526 Petition for Alien Entrepreneur with an INS Service Center. This petition requests INS to certify the applicant and the investment as eligible for EB-5 visa status.

Step 2) Upon approval of the I-526 petition, (a) if you are in the United States you may apply for Adjustment of Status to Permanent Residence by sending form I-485 and supporting documents to the INS regional processing center nearest your US residence. (b) If you are abroad you must wait for notification from the Embassy in your home country to prepare documents for the visa interview.

The purpose of the Adjustment of Status or consular visa interview is to make sure you are not subject to a grounds of exclusion, e.g. a criminal past, infectious diseases, etc.

Step 3) Upon approval you receive a form evidencing the approval and as well as a travel document. You will also receive the temporary green card in the mail. If you are abroad you must enter the US within six months of the date of the Embassy approval.

Step 4) After two years, you may file for removal of conditions or your permanent green card using Form I-829. This procedure permits INS to verify that you have maintained your approved investment for the required two-year period.


Important Tax considerations

The United States charges income tax on all US citizens and permanent residents based on worldwide income. Treaties and various exemptions eliminate some but not all of the risk of double taxation. Each state of the United States has its own tax system. All but four states raise revenue through state income tax. Investors should consider the tax effects of becoming a US resident before investing. As a general rule, if you are moving all of your assets to the US you will not have a problem with double taxation. If you will continue working or investing in your home country after moving to the US, a trip to your tax advisor is in order.
 

• A direct route to a green card
• Permanent residency via the green card for the family including children under 21
• Freedom to live and work where you want in the USA, or retire.

Different Programs

There are a small number of structured immigrant investor programs formed specifically for EB-5 (pilot program) investor visa applicants. The programs are a mixed bag with different track records and include amongst others those offering commercial properties, resort development, managed farm investments and a business loan service etc.

There are a number of companies advertising on the web as offering an EB-5 investor visa (pilot program) option, not all these companies as yet have all the required registrations, a track record of visa investment using this program or make clear some important LIMITATIONS AND DANGERS so be wary.

If you would like a briefing or would just like details of the programs which are approved as Regional Centers please contact us.

It is up to each visa applicant to select a program and professional investment and legal advice should be sought.

Options should have a proven, measurable track record, there seems to be a preference for freehold commercial properties or property secured options and programs which can be financed in a number of ways including applicant's pension funds, however there are implications that they often fail to realize when making this judgment.

EB-5 “Regional Centre” Investor

The EB-5 Immigrant Investor Green Card Program is an ideal option to obtain permanent residency in the United States for foreign investors who invest $500,000 in one of several immigration-approved "regional development centres" in different U.S. States.

The various economic development centres are managed by different General Partnerships, which are authorized to sell Limited Partnerships in the program to foreign investors who wish to pursue permanent residency, the "Green Card", in the United States.

The investment with the regional centre program must be made before the EB-5 application can be submitted. It is crucial for obtaining approval of the initial I-526 petition that the invested funds were legally earned. This evidence may be compiled from at least 5 years of tax returns, proof of the employment from which it was earned, documentation from any recent transactions from which the money was derived, such as the sale of land or from an equity line on a property, or proof of inheritance. The initial petition is generally adjudicated with 6 months.

Once the I-526 petition is approved, an investor who is already living in the U.S. in non-immigrant visa status, may apply for adjustment of status. Investors, who are not currently living in the U.S. in non-immigrant visa status, would complete the immigrant visa process through the U.S. consulate. Adjustment of status typically takes 1 year or more, while immigrant visa processing through the consulate typically takes about 6 months.

Upon completion of these two processes, the investor will be granted two years of conditional permanent residence. During the final 90 days of that two-year period, a petition to remove the condition from your permanent residence must be filed with immigration. As part of that process, we must show that the investor has maintained his/her investment, and that the regional centre has continued to pursue the business plan that was presented to Immigration with the I-526 petition, in which it showed, with the help of a report from an economist, that it will create at least 10 new jobs per foreign investor out of a combination of direct, indirect, and induced employment creation. This process currently takes about 9-12 months.