As the worldwide economy has collapsed in the past few years, the political environment has deteriorated and the violence has substantially increased in some countries around the world, many wealthy people are trying to find countries that offer a safer environment for them and their families as well as a safer investing territory for their life savings. Although some European countries, Canada, and Australia offer a safer investing territory and environment, they have very limited investor visa programs and the investments are highly taxed. On the other hand, the United States has created one of the most beneficial immigration programs in U.S. Immigration Law history, known as “EB-5”. The EB-5 program allows foreign investors to invest in the Unites States and to obtain lawful permanent status (green card) for the investor and his/her immediate family (spouse and unmarried children under 21 years of age), which is the first step to become a U.S. citizen.
Congress created the EB-5 Immigrant Investor Program to attract foreign investors in order to stimulate the U.S. economy through job creation and foreign capital investment. The EB-5 green card route is a highly beneficial option for wealthy foreign nationals. Since there is no quota backlog or waiting list in this preference category, it enables an applicant to obtain permanent residence status much more quickly than with most other options and to keep the investor, his family and the investment in a safer country.
What are the requirements?
An investor may obtain a U.S. green card through the EB-5 category if the investor generally fulfills two major requirements:
- Invest at least $500,000 (in “targeted employment areas”) or $1 million in a new commercial enterprise in the United States: The invested funds must come from a lawful source. The investment must be “at risk”, meaning that the capital is going to be used for job creation and profit-generation activities.
- Create 10 full-time jobs for U.S. workers: The investor and the family members cannot be counted as U.S. workers and the 10 full-time workers must work for at least 35 hours a week.
Procedure
An investor must file a petition with U.S. Citizenship and Immigration Services (“USCIS”). Upon approval of the petition, the investor and immediate family (spouse and single children under 21 years of age) may apply for an Immigrant Visa at a U.S. consulate or apply for Adjustment of Status at a regional USCIS office if the investor is already in the United States.
The initial resident status is “conditional” for two years. Prior to the expiration of the two-year period, the conditional resident investor must file a petition with the USCIS to request removal of the condition on permanent residence. The petition should be granted if the investor demonstrates that he/she invested or was actively in the process of investing the requisite capital; the investor maintained the investment throughout the two-year period of conditional residence; and the investment created the requisite employment.
Passive Investor Option – Regional Designated Center Pilot Program
To encourage immigration through the immigrant investor category, the U.S. Congress created the Designated Regional Center Pilot Program in 1993. The Pilot Program sets aside 3,000 visas each year for individuals who invest the required amount of capital in a Designated Regional Center. A Regional Center is an entity, organization or agency that has been approved as such by USCIS, which focuses on a specific geographic zone within the U.S. and aims to promote economic growth. The regional center option is ideal for passive investors who do not want to manage the day-to-day business of the investment.
EB-5 Challenges
Some of the biggest challenges for EB-5 investors typically include:
- Showing that the invested funds came from legitimate sources and were not amassed or transferred in violation of laws.
- Showing that the jobs in a project that takes years to develop really will be created within 2 years of the approval of the petition.
- Balancing the need to create 10 jobs and have the capital “at risk” with the desire for investment stability, timely return, and profit.
EB-5 Green Card Benefits
The EB-5 green card option allows investors to:
- Live anywhere in the U.S. while enjoying a safer country, retirement, attending school, or running the enterprise in which they have invested.
- Become a permanent resident (green card holder) and, five years later, a naturalized U.S. citizen.
- Petition for their spouse and children under 21 years old to immigrate with them to the U.S.
- Have your life saving in a safer investing territory.
In sum, wealthy people have an option to immigrate to the United States with their immediate family to live in a safer country and enjoy a more stable economy and political system through the EB-5 program. Potential investors should consult with a seasoned immigration attorney to explore more in deep the EB-5 program requirements and benefits.
