It is highly advisable to have an immigration attorney do the filing for you. After filing, biometric screening, including fingerprinting, is required for petitioners between 14 and Most petitions result in approval.
Denial, though not very common, usually happens in cases of criminal or immigration law violations. If an EB-5 investor has their I petition approved and they are not living in the U. It is processed at a U. It is highly advisable to file this form with an immigration attorney. The application consists of two parts, application and interview. The application documents biographical information, including previous residences, job history, and military service history if applicable.
This is conducted at the U. A consular worker assists in completing this part of the application process. The applicant may be asked to bring documents such as birth certificates, passport, and marriage certificate if applicable. Approval of an I or DS petition results in a Green Card — the applicant is now a conditional permanent resident in America.
This status is good for two years. The investor and his or her family members can live and work in the U. During the 2-year conditional residency period, the EB-5 visa investor will be required to fulfill physical presence requirements, and cannot remain outside of the United States for more than one year. If the immigrant investor does reside outside of the U.
Three months before the expiration of the conditional permanent resident status, the investor will want to remove the conditions of permanent residency. The final step in the EB-5 visa process is for the applicant to become an unconditional permanent resident. This is done by the removal of conditions to permanent residency after an I application is filed, adjudicated, and approved.
Funds can be sourced from anywhere in the world if they legally belong to the investor. The EB-5 Regional Center program was created in to allow multiple investors to pool their capital for enhanced economic impact within a defined geographic area. This also allowed EB-5 investors to make a passive investment with Regional Centers and issuers who had knowledge and expertise in EB The main difference is how job creation is calculated.
In the basic EB-5 program the 10 US jobs must be direct hires of the enterprise into which the EB-5 investor contributes capital, these direct jobs must be maintained full-time for 2 years. Additionally, direct investors need to coordinate the preparation of the filings with an attorney, ad hoc business plan writer, economist, and more.
In the Regional Center program the experienced issuer of the project will take on this role for the investors. The goal of a typical EB-5 investor is to obtain a Green Card and receive their investment principal back. Well-structured EB-5 offerings have a structured exit strategy in which the EB-5 investors are repaid in-full plus interest.
It takes about 1. EB-5 projects assume many different business models and operate within many different industries. Types of EB-5 projects include:. Most EB-5 investments tend to include real estate development as job creation is easiest to show via construction. The invested capital is then deployed as a loan or as equity to the JCE. The remaining amount required to complete the project may come from a developer, bank loan, grant, investment fund, or any other source of capital.
The fixed coupon rate is paid throughout the loan term beginning the day the money is lent to the developer. A typical EB-5 project will have a loan term of 5 to 7 years. Equity projects inherently have more risk but can potentially earn the investor a higher return if the business is successful. Senior Lender: The Senior Lender is first in line to be paid back, they hold the first position or right to foreclose on the property if there is a default on the loan agreement. This means in the event of a project failure, the first position lender can take over ownership of the development property and liquidate to recover its money.
This is often a bank but sometimes is the EB-5 fund. Secondary or Mezzanine Lender: The Secondary or Mezzanine Lender holds second position and therefore is second in line to be paid back in a project failure, the Senior Lender will be paid back in full prior to the second lender recovering any money. Most EB-5 project loans are in second position so it is important to note how large the senior loan is.
A larger percentage of money lent in a position ahead of you creates more risk. Preferred Equity Position: Preferred Equity investors will receive profits from the project until their preferred return is paid. This also means that return is dependent on the project returning a profit unlike a loan where interest is paid from day one when funds are lent to the developer.
There is potential for more return because usually you are taking on more risk than a loan, but in EB-5 Preferred Equity returns tend to be heavily restricted. You also are relying on the NCE liquidating through a sale or refinance to recover your investment, and there may not an investment maturity date. There are many ways to structure Preferred Equity offerings, please review the offering documents for each individual project to obtain the true structure of the investment.
This is the riskiest portion of the capital stack as you are relying on profits alone to be paid a return. Again, you are relying on a sale of your share of the NCE to recover your investment, there is not a loan maturity date. Where your money is in the capital stack will decide the risk and return of your investment. Other primary aspects to consider are: the current value of the asset during construction, how far along construction is, and the likelihood of construction completion.
An EB-5 investor must invest the required amount of capital in a new commercial enterprise that will create full-time positions for at least 10 qualifying employees. Rather than count 10 hired employees, the USCIS allows Regional Centers to use multiple economic impact formulas to connect money spent on a project with the number of jobs created. These jobs can be created collaterally or as a result of the capital invested in a commercial enterprise affiliated with a Regional Center.
In other words, the investor does not need to show that he or she directly hired any employees and the burden of proving job creation is passed onto the Regional Center. Our team demonstrates the jobs created as a result of the project — both direct and indirect — through economic analyses performed by our world-class economists.
Regardless of which option an investor chooses, the minimum investment amounts are the same. Immigrants who successfully complete the EB-5 visa program by having their I application accepted become lawful permanent residents of the United States. Permanent residents are given a green card, which enables to live and work in the United States permanently. Permanent residents can live and work anywhere in the United States. Permanent residents can travel without needing a visa and can work in the United States without needing sponsorship from a U.
EB-5 investors have the opportunity to become United States citizens after they complete the EB-5 program. To qualify to become a U. Then the EB-5 visa holder can go through the naturalization process which enables them to become United States citizens. Citizens are granted voting rights that enable them to participate in federal, state, and local public elections. Sponsoring foreign family members is also easier for U.
Citizens also become eligible for certain government benefit programs.
0コメント