In 1990, under section 203(b)(5) of the Immigration and Nationality Act (INA), 8 U.S.C. § 1153(b)(5) the US Congress created the fifth employment-based preference (EB-5) immigrant visa category. Each year, the provision allots 10,000 immigrant visas to qualified individuals seeking permanent resident status on the basis that their investment in a new commercial enterprise will benefit the US economy.
To encourage immigration through the EB-5 program, Congress created a Pilot Program in 1993. Now after changes in the US Congress in Sept 2012 the name has been changed to Immigrant Investor Program together with a 3-year extension. The program provides investors with expanded opportunities to demonstrate Job creation.
The program specifically sets aside 10,000 visas annually for foreign investors who apply through a United States Citizen and Immigration Services (USCIS) designated Regional Centre Investment Program. An investor seeking an EB-5 immigrant visa through a designated Regional centre must generally make a qualifying investment of US $500,000 in target employment areas (TEA). Additionally, the foreign investor must demonstrate that at least 10 jobs were directly or indirectly created through the investment.
When looking purely at visas issued in the EB-5 category, as expected, China mainland born investors constituted the majority in every Fiscal Year.
In terms of visas issued plus adjustments of status in FY2014, China mainland born investors constituted 9,128 or 85.4% of the 10,692-grand total in the EB-5 category. This number also signifies a 32.4% relative increase from the amount of China mainland born EB-5 immigrants in FY2013, in which they constituted 80.5% of the EB-5 category total. In both years, investing $500,000 in a TEA through a Regional centre was the overwhelming investment choice for China mainland born applicants, with 95.5% having chosen that route in FY2013 and 98.2% in FY2014, whereas for India the figure is very low.
An EB-5 Regional Center is an organization designated by United States Citizenship and Immigration Services (USCIS) that sponsors capital investment projects for investment by EB-5 investors. The Regional center can take advantage of indirect job creation which is a major benefit, since Regional centers help EB-5 investors and project developers to lessen the difficulty of meeting job creation requirements under the EB-5 program rules. Any private or public economic entity that is involved with the promotion of job creation, increasing domestic capital as well as improving regional productivity and increasing economic growth can be a Regional center.
Regional centers are best for EB-5 applicants who are more concerned with obtaining residency status rather than directly managing an investment on their own.
The RC sets up an investment fund for the benefit of the EB-5 investors.
The Investors purchase equity stakes in the investment fund
Further, the fund either purchases equity in the job creating entity (the equity model) or loans the job creating entity money (the loan model).
The job creating entity then uses the investment from the fund in the project to create jobs indirectly.
There are 800+plus regional centres. We partner with the best RCs in the industry. Please get in touch with us for a free/no obligation one on one consultation.
EB-5 Regional Center foreign investors include people from all walks of life including: professionals, business people, persons wanting to facilitate a child’s education, and retirees. If your goal is to become a permanent resident without actively managing a business, it is often less expensive and more convenient to utilize the Regional Center EB-5 category projects where your investment funds are placed into active projects.
When you invest through a Regional Center, the minimum capital requirement is US$500,000 when you select a project in a rural area or targeted employment area (TEA); for all other projects, the capital requirement is US$1,000,000
The EB-5 regulations require your involvement in the EB-5 Regional Center Immigrant Investor Program. The regulations deem a limited partner in a limited partnership that conforms to the Uniform Limited Partnership Act as sufficient engagement in the EB-5 enterprise. However, the Uniform Limited Partnership Act, adopted by most states of the United States, prohibits the limited partner from actively participating in management.
No. The EB-5 visa program allows you to maintain your Permanent Residency by living anywhere in the U.S.
Legally yes. However, people from countries that do not have reliable tax and other financial documentation will need to be more actively involved in proving the authencity and source of investment of funds to process an EB-5 visa application.
USCIS is a division of the Department of Homeland Security. USCIS is a government agency responsible for the implementation, administration of immigration and naturalization laws, rules and regulations, functions and policies in the provision of services.
Please visit the United States Citizenship and Immigrations Services (USCIS) website. For a direct link to investment visa information, please visit the following website: https: www.uscis.gov/eb-5
It is advisable & desirable that every EB-5 Investor engages with an independent attorney, who shall prepare their I-526 Petition for you. Generally, the attorneys do not advise or suggest any Regional Centres. The attorneys advise only on the legal aspects of the immigration process.
The foreign investor must complete three phases of the application process.
Step 1: To obtain immigrant investor status, the foreign investor must submit a completed Immigrant Petition by Alien Entrepreneur Form (Form I-526) to US Citizenship and Immigration Services (USCIS) along with supporting documentation clearly demonstrating that the investment meets all EB-5 requirements. Upon approval of the I-526 Petition, this will be the foundation for Step 2.
Step 2: If the foreign investor is residing within the US on any other Visa and has received Form I-526 approval, he or she may obtain conditional resident status by submitting a completed Application to Register Permanent Residence or Adjust Status (Form I-485) to USCIS. If residing outside the US, the foreign investor must apply for an immigrant visa at a US Consulate within his or her country.
Step 3: During the 90-day period prior to the expiration of the conditional period, the investor should file a completed Petition by Entrepreneur to Remove Conditions (Form I-829) to USCIS. In this petition, the foreign investor must demonstrate that the investment was sustained over the two-year conditional period, and the requisite jobs were created. Upon approval of the I-829 petition, the conditional nature of the green card is lifted and full permanent residence is granted to the investor, his spouse and children below the age of 21 years.
Generally, the following documents should be good enough to take care of the information required. However, if any additional information is required, our Attorneys will guide accordingly.
Professional Background: You must prepare complete biographical information for each applicant and the principal applicant must prove the source of the investment funds. A résumé with copies of college diplomas and other educational certificates, if applicable, should be included. Any memberships in professional organizations should be documented. Unless the investor inherited the funds, the investor should be presented as a successful professional or businessperson with a business, financial or family history that explains the accumulation of financial net worth that is presented in the financial information. Provide as much documentation as possible that pertains to the career and achievements of the Investor.
Source of Funds: Funds for the investment must come from a lawful source. Lawful sources of funds include: profits from the sales of a property, stocks or bonds, profits from business, business transactions, gifts, and inheritances. To prove the source of investment funds, USCIS requires records of tax returns, bank records, proof of ownership in any businesses, financial statements for each business and business licenses. The idea is to present a track record of an honest course of dealing. If your capital came from a specific transaction, such as sale of a house, inheritance or gift, you must prove that 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 of documents. Other documents may be required and vary on a case-by-case basis.
All documents included in the application must be translated into English in a proper Affidavit format.
Under the regulations, an investor who is approved for the EB-5 immigrant visa receives a conditional green card, which must be reissued after two years, subject to removal of conditions. Otherwise, the two cards offer the same rights and privileges. A conditional Green Card is a temporary Green Card valid for two years. One year and nine months after it is issued, a three-month window opens up during which an individual must file another application with the USCIS to verify that all of the funds have been invested and the required employment has been created. When the conditional resident status has been lifted, full resident status is granted and a permanent Green Card is issued.
Upon approval of I-526 Petition:
(a) If you are residing outside the U.S. you must wait for notification from the U.S. Consulate in your home country to prepare documents for the visa interview. The purpose of this procedure is to ensure that the investor and his or her family undergo medical, police, security and immigration history checks before the conditional permanent resident visas are issued. At the interview, the consulate officer may address these issues and information printed on the I-526 application, including asking the investor to summarize the nature of his or her immigrant investment.
(b) If you are in the United States, then you may apply for adjustment of status by filing form I-485, and supporting documents. The application may be filed at the appropriate office.