In this video attorney Jacob Sapochnick discusses the future of the EB-5 Visa Program.
What is the EB-5 Visa Program?
The EB-5 Visa Program is an Immigration Investor Program that was created by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors. In 1992, Congress created the Immigrant Investor Program, also known as the Regional Center Program. This sets aside EB-5 visas for participants who invest in commercial enterprises associated with regional centers approved by USCIS based on proposals for promoting economic growth.
EB-5 Investors can obtain conditional residence if they:
Make the necessary investment in a commercial enterprise in the United States; and
Plan to create or preserve 10 permanent full-time jobs for qualified U.S. workers.
In general, the minimum qualifying investment in the United States is $1 million.
Regional Centers: Targeted Employment Area (High Unemployment or Rural Area). The minimum qualifying investment must be either within a high-unemployment area or rural area in the United States is $500,000.
As of September 28, 2018, Congress has extended the EB-5 visa program until December 7, 2018. This means that the program will continue to be active and investors may utilize the program just as before, at least until the end of the year. It is not yet known whether any changes will be made to the program in the future, or if the program will continue at all into the new year.
For more information about the EB-5 program please visit our website.
In this segment, attorney Jacob Sapochnick Esq., discusses the EB-5 visa program and Regional Center investments. For more information about the EB-5 program please click here.
What is EB-5?
The EB-5 is a visa that allows an immigrant to obtain permanent residence in the United States based on an investment in a new commercial enterprise. The amount of funds that must be invested will depend on whether the investor will be investing in a project through a Regional Center. Under section 203(b)(5) of the Immigration and Nationality Act (INA), 8 U.S.C. § 1153(b)(5), 10,000 immigrant visas per year are available to qualified individuals seeking permanent resident status on the basis of their engagement in a new commercial enterprise. To qualify for the EB-5 program, you must either invest half a million dollars in a Regional Center project or invest a million dollars in a new commercial enterprise (regular EB-5).
What is a Regional Center?
A regional center is a government designated program where investors invest up to half a million dollars together and throughout this process gain permanent residency. Currently, there are 864 regional centers throughout the United States, with projects in various different sectors including real estate, energy, export, wineries, etc. EB-5 is a popular program because investors are not required to physically or actively participate in the business they are investing in. They must however, invest funds into a new commercial enterprise or regional center and go through the necessary process.
Investors who are interested in a regional center project must be active in selecting a regional center. Attorneys cannot advise regional center clients on which regional center they should select. Attorneys can however provide general information and the pros and cons of working with a regional center. Attorneys can also warn individuals against making risky investments. Investors must do their homework and learn about the different regional centers and what type of project they would like to invest in. Attorneys cannot be actively involved in this process.
Typically once the regional center provides the agreement to the investor, the investor must sign the agreement and put down a deposit. Afterward, the application process for the EB-5 program begins
First investors must complete the I-526 application. This application allows the investor to obtain a conditional 2-year green card. It is conditional because the government wants to ensure that the funds have been invested and all other requirements of the EB-5 visa program have been met during the first 2 years of the project. If the application is properly filed and the investment funds are legitimate and verified, the I-526 application should be approved within approximately 8 months of filing.
Once the I-526 application is approved, the investor can proceed and file Form I-485 Application to Register Permanent Residence to apply for the permanent residence card. Once the green card application is properly filed it can take up to 6-10 months to receive the conditional green card.
To remove the conditions on the green card, investors must submit the I-828 Petition by Entrepreneur to Remove Conditions before their green card expires.
What happens to the funds at the end of the process will depend from regional center to regional center. Generally, there are ways for investors to get their funds back by selling their share in the project, etc.
To learn more about other types of investment visas please click here. Please call our office for a consultation.