EB-5 Category: Immigrant Investors In The United States
Overview
The EB-5 Alien Investor category is an excellent opportunity for many foreigners to obtain Permanent resident status (green card) in the United States. The EB-5 Investor Green Card allows a foreign investor to work in any capacity, go to school or enjoy retirement, and it is available to investors, either alone or coming with their spouse and unmarried children.
The basic investment amount is $1 million. The required investment is $500,000 for a business established in a "targeted employment area" (or regional center). Aliens can invest the required amount alone, create the qualifying business with another immigrant investor, or even create the business with US citizens or other people not seeking classification as an immigrant investor.
The investment can be in the form of cash, equipment, inventory, other tangible property, cash equivalents and indebtedness secured by assets owned by the alien provided that he is personally and primarily liable and the assets of the new commercial enterprise are not used to secure any of the indebtedness. The definition specifically excludes capital acquired by unlawful means.
AVAILABILITY AND REQUIREMENTS
.There are 10,000 visas available in the category each year, 3,000 of which are reserved for people who participate in a pilot program at a “Regional Center” designed to target low employment areas. The three main requirements to qualify for the EB-5 alien investor’s program are:
1) The alien investor must establish a “qualified investment” by:
- creating an original business;
- purchasing an existing business and simultaneously or subsequently restructuring or reorganizing the business such that a new commercial enterprise results; or
- expanding an existing business by 140 percent of the pre-investment number of jobs or net worth, or retaining all existing jobs in a troubled business that has lost 20 percent of its net worth over the past 12 to 24 months;
- Invest in an approved Regional Center (see below).
2) The alien must have invested - or who are actively in the process of investing -- $1 million ($500,000 in some cases) in a new commercial enterprise:
- Then $500,000 investment requires that the investment is made in a "targeted employment area," which is an area that has experienced unemployment of at least 150 per cent of the national average rate or a rural area as designated by the government.
3) The business must benefit the United States economy
- create full-time employment for at least 10 US workers (directly or indirectly);
- maintain the number of existing employees at no less than the pre-investment level for a period of at least two years, where the capital investment is being made in a "troubled business," which is a business that has been in existence for at least two years and that has lost 20 percent of its net worth over the past 12 to 24 months. If not a”troubled business” then additional 10 employees must be added to the company after the investment.
THE PILOT PROGRAM
As a result of a disappointing response to the basic immigrant investor program, Congress enacted a five-year immigrant investor pilot program, which ends on October 2008. The requirements of the pilot program are essentially the same as in the basic investor program, with certain exceptions. In order to qualify under the pilot program, an investment of at least $500,000 must be made in a commercial enterprise located within an approved "regional center". A regional center is:
- An entity, organization or agency that has been approved as such by the U.S. Citizenship and Immigration Service (USCIS);
- Focuses on a specific geographic area within the United States; and ,
- Seeks to promote economic growth through increased export sales, improved regional productivity, creation of new jobs, and increased domestic capital investment.
Targeted employment areas include:
- Rural areas, defined as any area other than one within a metropolitan statistical area or within the boundary of a city or town with a population of 20,000 or more; and
- Areas having an unemployment rate that is at least 150% of the national average.
BECOMING A PERMANENT RESIDENT
In order to become a lawful permanent resident, eligible investors must file a petition with immigration. When the immigrant investor application is submitted to USCIS, it must include the following:
- Evidence to show that a new commercial enterprise has been established (articles of incorporation, business license, or evidence of the transfer of the required amount of capital when purchasing an existing business).
- Evidence that the proper amount of capital has been placed at risk (bank statements showing the deposit of funds into the business’s account, evidence of equipment purchased for use in the business; evidence of property transferred to the business, and evidence of money transferred to the business in exchange for shares of stock. This stock cannot include terms requiring the business to redeem the stock at the holder’s request).
- Evidence demonstrating that the capital invested was lawfully gained (foreign business registrations, tax returns, or certified copies of criminal or civil judgments, where appropriate).
- Evidence of the investor’s net worth (tax returns for the past five years).
- Evidence that the investment will create or has created at least ten full-time jobs (tax records, Forms I-9, or if employees have not yet been hired, a detailed business plan demonstrating that the nature of the business will require the hiring of ten employees within two years. If the business is a troubled business, the applicant must submit evidence that the currently existing number of employees will be maintained for at least two years).
- Evidence that the investor will be engaged in the management of the enterprise (evidence that the applicant is a corporate officer, member of the board of directors or policy manager)
Timing and Conditional Permanent Residence
There is a 9-12 month period to receive a reply from immigration for the initial EB-5 Green Card. If the investment application is granted, the alien is given conditional permanent residence for two years. The alien must file a petition to remove the conditions during a 90-day period prior to the second anniversary of the alien’s lawful admission as a permanent resident. USCIS will examine the business at the end of the two-year period to determine whether or not the alien has complied with all of the requirements.
The entrepreneur’s residence may be terminated at the end of the two-year period or earlier if it is found that the business was not established, or was established solely to evade immigration laws or that the requirements were otherwise violated. If, in the application to removed conditions, the alien demonstrates that the business was established, that the required amount of capital was invested, and that 10 full-time jobs either have been or will be created, the conditions will be removed and a permanent resident card will be issued. The foreign investor and his family will be able to apply for U.S. citizenship after five years.
LIST OF DOCUMENTS FROM INVESTOR:
Personal Documents
- Certified copies of any judgment against the investor or spouse from any court within the past 15 years (if applicable).
- Full copy of passport for yourself and all non-U.S. dependents (each page, including blanks).
- Birth certificates for yourself and all non-U.S. dependents (long form, naming both parents).
- Marriage certificate if married (especially important if investment funds are from joint accounts).
- Detailed resume, including educational credentials and work history (by month and year).
- Copies of all Degrees, Diplomas, Certificates, and Transcripts (translations required for documents not in English).
- U.S. education equivalency evaluation (if any) (if you do not have evaluation, we will provide you with the information to have your evaluation completed).
- If you are physically present in the U.S. you must provide for yourself and all non-U.S. dependents:
- I-94 card.
- Visa.
- Social security card, U.S. driver’s license.
Source of Income and Investment Documents
The investor must disclose the source of income to immigration. If the investment funds derive from sources other than your own earned income, you must document those sources will be, and the source of income must be discussed with us before you proceed with your investment.
- Copies of bank statements, clearly showing your ownership of the account (your name on the statement), and showing funds out of the account and into the investment or the Regional Center.
- Foreign business registration records (if funds derive from business abroad).
- Personal Tax returns filed within the last 5 years in or outside the U.S.
- Business Tax returns filed within the last 5 years (if your investment funds derive from a business you own).
- Other sources of capital (must provide information as to the source of investment funds derives and if comes from one or more of the following:
- earned income from employment
- proceeds of securities accounts
- inheritance
- trust account in which you are a beneficiary
- gift letter
- If purchasing and existing business please provide the following:
- Incorporation documents.
- Updated stock certificates (if ownership has changed).
- Taxes for the past three (3) year.
- Business plan with five (5) year projections.
- Quarterly taxes report.
- I-9 Forms for all employees.
- Updated corporate charts with positions and employees.
- Pay records for the past three (3) years.
- Certificates of Occupancies.
- Updated photographs of new offices.
- Updated Lease agreement.
- FEIN confirmation letter.
- Copy of website, magazine articles, marketing material for the corporation.
- Invoices, contracts, letters of intent, memorandum of understanding, checks and any evidence of operations and activities of the company for the past year.
- Bank statements for the past 12 months evidencing corporate activity.
- Name of person who will be signing for the EB-5petition.
- Corporate letterhead.