What is EB-5?

What is EB-5?

EB-5 REGIONAL CENTER

Program Summary

“The EB-5 program has already attracted billions of dollars into emerging and expanding American businesses.”

The U.S. Congress created the EB-5 Program in 1990 in order to enable high net worth Foreign Investors to obtain a U.S. Visa by investing in a U.S. business that will benefit the economy and create jobs. To qualify under the EB-5 Program, the Foreign Investor must invest $1 million in a qualified new commercial business. That amount is reduced to $500,000 if the new commercial business is located in an area with high unemployment. Each investor must also create 10 or more permanent U.S. jobs through his or her investment. The benefits of the EB-5 Program are simple and easy to see. U.S. businesses receive much needed capital at competitive rates and the Foreign Investor receives an ownership interest in a U.S. business that will make a loan or investment that affords them an opportunity to qualify for an expedited U.S. green card. The EB-5 program has already attracted billions of dollars into emerging and expanding American businesses, and continues to provide a low cost, viable source of business financing.

 

Origins

The EB-5 Regional Center Pilot Program (“Pilot Program”) is a federal government program managed by U.S. Citizenship & Immigration Services (“USCIS”). The Pilot Program became law in 1993. The Pilot Program permits the EB-5 Investor and his or her spouse and unmarried children under age 21 to become Lawful Permanent Residents of the U.S. (i.e., obtain “green card” status).

 

Requirements

(a) For Regional Centers: USCIS must pre-authorize EB-5 Regional Centers (“Regional Centers”) to market investment projects and raise capital from foreign investors under the Pilot Program. USCIS analyzes in detail the Regional Center’s business plan, investment projects, management team, fee structure and job creation projections.

(b) For Investors: To qualify, EB-5 Investors must meet 3 requirements: (1) make an investment of least $500,000 or $1,000,000 in a pooled investment vehicle; (2) provide detailed evidence showing that the money invested was legitimately earned, and (3) their investment must cause the creation of 10 new jobs in the U.S.A. EB-5 investors first apply for a green card using Form I-526 with hundreds of pages of supporting evidence explaining he investment project and the source of the money invested. Once Form I-526 is approved, EB-5 investors obtain a temporary 2 year conditional green card. At the end of the 2 year conditional green card, EB-5 investors must file a 2nd application with USCIS to prove that they remain invested in their project, and that their investment actually created the 10 new jobs required.

EB-5 REGIONAL CENTER

Program Summary

“The EB-5 program has already attracted billions of dollars into emerging and expanding American businesses.”

 

The U.S. Congress created the EB-5 Program in 1990 in order to enable high net worth Foreign Investors to obtain a U.S. Visa by investing in a U.S. business that will benefit the economy and create jobs. To qualify under the EB-5 Program, the Foreign Investor must invest $1 million in a qualified new commercial business. That amount is reduced to $500,000 if the new commercial business is located in an area with high unemployment. Each investor must also create 10 or more permanent U.S. jobs through his or her investment. The benefits of the EB-5 Program are simple and easy to see. U.S. businesses receive much needed capital at competitive rates and the Foreign Investor receives an ownership interest in a U.S. business that will make a loan or investment that affords them an opportunity to qualify for an expedited U.S. green card. The EB-5 program has already attracted billions of dollars into emerging and expanding American businesses, and continues to provide a low cost, viable source of business financing.

 

Origins

The EB-5 Regional Center Pilot Program (“Pilot Program”) is a federal government program managed by U.S. Citizenship & Immigration Services (“USCIS”). The Pilot Program became law in 1993. The Pilot Program permits the EB-5 Investor and his or her spouse and unmarried children under age 21 to become Lawful Permanent Residents of the U.S. (i.e., obtain “green card” status).

 

Requirements

(a) For Regional Centers: USCIS must pre-authorize EB-5 Regional Centers (“Regional Centers”) to market investment projects and raise capital from foreign investors under the Pilot Program. USCIS analyzes in detail the Regional Center’s business plan, investment projects, management team, fee structure and job creation projections.

(b) For Investors: To qualify, EB-5 Investors must meet 3 requirements: (1) make an investment of least $500,000 or $1,000,000 in a pooled investment vehicle; (2) provide detailed evidence showing that the money invested was legitimately earned, and (3) their investment must cause the creation of 10 new jobs in the U.S.A. EB-5 investors first apply for a green card using Form I-526 with hundreds of pages of supporting evidence explaining he investment project and the source of the money invested. Once Form I-526 is approved, EB-5 investors obtain a temporary 2 year conditional green card. At the end of the 2 year conditional green card, EB-5 investors must file a 2nd application with USCIS to prove that they remain invested in their project, and that their investment actually created the 10 new jobs required.