OVERVIEW / ADVANTAGES OF THE UNITED STATES EB-5 PROGRAM / EB-5 PROGRAM HISTORY
Many countries around the world have immigrant investor programs. The most successful countries attracting immigrant investment are Canada, Australia, the United Kingdom and the United States. When traveling to South Korea you find a queue line for returning residents, foreigners and investor visas! The idea of investor’s visas is not new and the United States program is really just getting started.
The U.S. immigrant investor program is called an EB-5 visa. An EB-5 visa is a permanent U.S. visa based upon an immigrant investment that creates American employment, thus the name Employment Based 5th Preference Visa. If a foreign national invests $1 million (or in some cases $500,000 in a targeted employment area) in a business that creates ten American jobs they would be eligible to obtain a green card (permanent visa) for themselves and their entire family. There are other provisions such as the investment must be maintained, that the investment creates regional productivity, and others. However the main requirement is the creation of ten American jobs. The program is divided into two distinct phases. In the first phase the immigrant investor is granted a conditional visa. If after two years the investor has created the requisite jobs and maintained the investment the visa is made unconditional and permanent.
Types of EB-5 Investments
EB-5 Investments are broken into two categories: a direct investment into a business, or an investment into a federally approved Regional Center. The direct investment is just that – an investment within a company. A Regional Center is a designation granted to a entity that has completed an application process with the USCIS. This rigorous application process explains the entire business plan of the Regional Center and the jobs creation methodology. Once approved, the Regional Center has much greater power in creating jobs through pooling investor funds and has greater leeway for job creation proof. Regional Centers are allowed to utilize both direct and indirect job creation to support the investor’s requirement of a minimum of ten American jobs created. Simply stated, a Regional Center is a more powerful tool for an EB-5 applicant to prove job creation. Investing through our Federally-designated Regional Center offers the immigrant investor the most expeditious means for obtaining a permanent visa. This is a simplified overview and a more in depth review can be found here:
