For those who do not have a US citizen family member or a US employer to sponsor them, the EB-5 Green Card program is an alternative visa option to apply for permanent legal residence in the US. In recent years, the EB5 program has become very popular.
The Immigration Act of 1990 established the EB-5 immigrant investor visa program to create U.S. jobs by attracting foreign capital to the United States. Every year, 10,000 EB-5 Green Cards are available.
Basic requirements:
- The alien must have invested $1 million (or only $500,000 when investing in a targeted employment area) in the business
- The alien must establish a U.S. business or invest in an existing business that was created or restructured after November 19, 1990
- The business must create full-time employment for at least 10 U.S. workers
Direct Investment:
In order for an applicant to qualify under the EB-5 Regular Program, the following three basic criteria must be met:
- Investment in a new commercial enterprise
- Investment of at least $1 million into a business, or $500,000 is acceptable if the business is situated in a “targeted” employment area (TEA), i.e. one that has experienced unemployment of at least 150% of the national average rate or a rural area
- Creation of employment for at least 10 full-time U.S. workers
Regional Centers:
Regional Centers are entities, organizations or agencies that focus on the specific geographic area within the United States in order to promote economic growth there. Most Regional Centers are in targeted employment areas, i.e. areas that have an unemployment rate that it at least 1.5 times greater than the national average. Regional Centers are approved by the U.S. Citizenship and Immigration Services. The Centers do not guarantee profit or the return of an investor’s principal investment. It must be noted that the investor does not have to reside in the same location as the regional center.
There are various benefits of investing in a regional center, including investment of only $500,000 and not $1 million, no day-to-day management required, and the 10 jobs created from the investment can be direct or indirect.
Whether direct or indirect investment is best for you will depend on various factors. The issues are complex.
If you would like more information about the EB-5 program, please contact us to schedule a consultation.