With the current administration’s plans to invest in infrastructure, there are now more opportunities than ever to create jobs and spur economic growth. However, finding an avenue that both bolsters job creation and is also compatible with current administration policies and objectives can be challenging. Every year, the U.S. Citizenship and Immigration Services (USCIS) receives a large number of applications for various visa categories, including the employment-based fifth preference category for individuals who intend to invest in a business started by a qualifying venture capitalist or investor.
The Immigrant Investor Program also known as the “EB-5 Visa” is one such avenue for eligibility as an immigrant in this category. This article introduces the EB-5 Visa program and explains how it works from applicant to green card holder. If you’re looking for information on investing in the United States through a new business or other ventures, read on to understand all you need to know about the EB-5 visa program
What is an EB-5 Visa?
The EB-5 Visa program allows foreign investors to obtain lawful permanent residence status by investing their capital in a new commercial enterprise that will create or preserve at least 10 full-time jobs for U.S. workers. To qualify for the program, applicants must invest at least $1 million in a new commercial enterprise. You can also invest $500,000 in an ongoing commercial enterprise that has created at least 10 full-time jobs for U.S. workers in the preceding 2 years. If you invest $1 million, the U.S. government will grant you conditional permanent residence status. Once the business has been up and running for 2 years and you have fulfilled the other requirements for permanent residence, your status will become permanent. However, if you invest $500,000, you’ll get conditional permanent residence status right away.
How Does the EB-5 Visa Work?
There are two ways to invest in the U.S. economy through the EB-5 visa program: -Investing in a New Commercial Enterprise – Investing in an Ongoing Commercial Enterprise -Investing in a New Commercial Enterprise If you intend to invest in a new commercial enterprise, your job is to find a business that has been newly started in the U.S. by an eligible commercial enterprise for which you will make an investment. Investors looking to make a new commercial enterprise investment have to be willing to take on more risk than those investors making an investment in an ongoing business.
Make sure to choose a business that has a strong likelihood of success. Also make sure to do your due diligence on the business’s management team and their ability to execute the business plan. -Investing in an Ongoing Commercial Enterprise If you intend to invest in an ongoing commercial enterprise, you should look for a business that has been around for at least 2 years. You can invest in businesses that are solely owned by U.S. citizens, U.S. lawful permanent residents and U.S.-controlled foreign corporations. You can also invest in a Joint-Venture with these entities as long as they hold at least a 51% ownership stake.
Who is Eligible for an EB-5 Visa?
There are two different types of investors who can apply for the EB-5 visa: – Foreign nationals who invest $1 million in a new commercial enterprise in the U.S. that will create at least 10 full-time jobs for U.S. workers. – Foreign nationals who invest $500,000 in an existing commercial enterprise in the U.S. that will create at least 10 full-time jobs for U.S. workers.
How Much Does it Cost to Apply for an EB-5 Visa?
It’s important to understand that there is no processing fee for the EB-5 visa application. The $500,000 investment is applied to the application as a fee. The application fee for the EB-5 visa is $1500.
Pros and Cons of the EB-5 Visa
Pros of the EB-5 Visa is that it is creating jobs, improving the economy, and contributing to the growth of the U.S.
Cons of the EB-5 Visa is that there is risk of fraud, a long wait, and a high investment requirement
The EB-5 visa program was designed to grow the U.S. economy by encouraging foreign direct investment. The $500,000 investment can be used to fund a new or existing business that will create jobs for U.S. workers. – Risk of fraud, a long wait, and a high investment requirement The EB-5 visa program is not risk-free. Be prepared to encounter fraud and also wait a long time for a decision. The average waiting time for an EB-5 visa is over 2 years because of the high volume of applications.
Is the EB-5 Visa Right for You?
The EB-5 visa program is one of the few avenues for foreign nationals to obtain lawful permanent residence. It can be challenging to navigate the application process, but it’s worth it to have the chance to live and work in the U.S. An EB-5 visa lawyer will guide in all the ways to invest in the economy through the EB-5 visa program, and you can choose the option that works best for you and your situation.