EB-5 Immigrant Investor Program
The USCIS administers what is called the Immigrant Investor Program, which is otherwise called the EB-5. It was created by Congress in 1990 to stimulate the U.S. economy by creating jobs and capital investment by foreign investors. All EB-5 investors are required to invest in a new commercial enterprise. Such businesses include a sole proprietorship, a partnership, a holding company, a joint venture, a corporation, or a publicly or privately owned business trust.
This classification must create or preserve at least 10 full-time jobs for qualifying U.S. workers within two years and it must create or preserve either direct or indirect jobs. Furthermore, investors can only be credited with preserving jobs in an already troubled business. In the United States, the minimum qualifying investment, in this case, would be $1,800,000 one million eight hundred thousand dollars, that amount may change in the near future. However, in a targeted employment area, meaning a rural area or one with a high unemployment rate the minimum investment would be $800,000 (this amount may also change in the near future)
EB-5 Eligibility
What Are The EB-5 Eligibility Requirements?
There are a number of factors that play into your EB-5 application, each as significant as the next, with plenty of room for error – even after all the appropriate documentation has been submitted. It is highly recommended that you speak with Ellie Azhang at the Law Offices of Azhang & Associates, Inc. for an in-depth look at what is needed to successfully apply for an EB-5 visa. A few primary requirements to consider, prior to starting your application:
Funding - While the EB-5 program greatly depends on the immigrant’s activity, interaction, and dedication to the invested site’s growth, the funds which he or she supplies are equally as important. To that point the United States Citizens and Immigration Services (USCIS) has established strict guidelines when it comes to the source of said funds and enforces these rules diligently:
1. Unlawfully gained income is not considered legitimate by the USCIS and will be reported.
2. Income gained from previous employment will require five years’ worth of income tax returns, bank statements, and any available salary reports.
3. Any monies obtained as a gift will need documentation proving the transaction and why it occurred.
4. Sums of money gained through inheritance and used as an EB-5 investment require a death certificate of the benefactor, a notarized will, and a statement indicating the relationship to the deceased.
5. Income obtained from the sale of a business, real estate, stock, or other previous investment will require all appropriate documentation and receipts before being admissible.
Commercial Investment - In general, immigrants looking to invest in a new commercial enterprise (built after November, 29th 1990) or plan to overhaul an older existing entity (built prior to November 29th, 1990) must contribute no less than $1.8 million to its creation or revitalization respectively. In the latter case, immigrant investors must prove that their financial
infusion increased the net worth or employee pool of the older company by at least 40 percent. In some instances, the USCIS can recommend a higher investment amount if the target investment company fails to meet certain initial criteria, although this is a rarity.
With that in mind, immigrants also have the option of investing in targeted employment areas (TEAs), or USCIS-designated regional centers, to lower the dollar amount to $800,000. TEAs are mapped out and recommended by the state; they can be either in rural regions with less than 20,000 citizens or situated in urban areas that have an unemployment rating calculated to be 150 percent higher than the state average. USCIS regional centers on the other hand offer a variation on what types of jobs can be created, either directly or indirectly.
In all cases, investors must assume the full risk when investing; the entire capital amount must be supplied without the promise of return. The USCIS has strict guidelines on monies being refunded at any time. Average investment opportunities fall into one or more of the following commercial categories:
· Sole Proprietorship
· Corporation
· General or Limited Partnership
· Private or Public Business Trust
· Holding company
· Joint venture
Job Creation - A key component to every successful EB-5 green card lies in the amount of employment developed as a result of an investor's contribution. In the span of two years, or depending on extenuating circumstances, the entrusted company must create or retain 10 full-time jobs for qualified United States workers. Employment that directly or indirectly is connected to the original investment can be considered full-time, depending on the company’s location in a TEA or regional center.
With the aid of attorney Ellie Azhang, at the Law Offices of Azhang & Associates, Inc. you can better understand the right path to securing EB-5 qualification for your business in the United States. By calling our office at (949) 296-7660, you can get invaluable insight into your best options in a low-cost, comprehensive consultation with one of our dedicated legal team members.
Skilled Representation You Can Rely On
Whatever legal challenges you may currently be facing as a foreign investor, attorney Ellie Azhang and the team at the Law Offices of Azhang & Associates, Inc. can help you. We prioritize our client’s needs and goals above all else, and can help you achieve your dreams. Call us today at (949) 296-7660 to receive a consultation concerning your rights and legal options and begin the path to future success today.