EB 5 Visa - Green Card India
EB5 Visa
What is an EB5 visa?
Requirements for EB5 Visa
EB5 visa USA investment types
Direct EB-5 investment
Regional center investment
Investment at-risk
Job creation requirements for EB-5 visa
How to get an EB5 visa
EB 5 investor visa requirements
Achieving U.S citizenship for Indians
Investor visa program benefits for India
What is an EB5 visa?
Requirements for EB5 Visa
EB5 visa USA investment types
Direct EB-5 investment
Regional center investment
Investment at-risk
Job creation requirements for EB-5 visa
How to get an EB5 visa
EB 5 investor visa requirements
Achieving U.S citizenship for Indians
Investor visa program benefits for India
EB5 Visa
EB-5 is an investor visa to the United States which allows investors to immigrate to the US. This type of visa is administered by the US Citizenship and Immigration Services and distributes 10,000 Green Cards yearly. A majority of these investors immigrate from India, China, Vietnam, and South Korea.
The program not only benefits the country’s economy but the foreign investors as well. With the program, the U.S economy generates money, creates employment, and improves local economy.
Foreign investors are given the chance to move to the U.S for school, work or to connect with family already living in the USA.
What is an EB5 Visa?
Employment Based 5th category or EB-5 Visa is a program in which it allows foreign investors to create business investments that will enable entrepreneurs (and their spouses and unmarried children under 21) to apply for a green card. A green card is a permanent US residency program that is offered by the US Citizenship and Immigration services. The agency offers around 10,000 Green Cards to immigrant investors per year and most of them come in Asia like in China, Canada, Vietnam, India, and South Korea.
EB5 Visa started in 1990 with the aim of stimulating the U.S economy through job creation and capital investment by foreign investors. It created a situation wherein it will not just benefit the country's economy, but foreign investors as well. The program was so successful that through the program, United States was able to create employment, boost local economies, generate money while giving foreign investors to work and study in the U.S. Through EB 5 hotel and multi-use developments like Hyatt Hotels, Hilton and Marriott were possible.
EB5 Visa started in 1990 with the aim of stimulating the U.S economy through job creation and capital investment by foreign investors. It created a situation wherein it will not just benefit the country's economy, but foreign investors as well. The program was so successful that through the program, United States was able to create employment, boost local economies, generate money while giving foreign investors to work and study in the U.S. Through EB 5 hotel and multi-use developments like Hyatt Hotels, Hilton and Marriott were possible.
EB 5 Investor Visa Requirements
To avail the EB-5 visa program, you must have meet the following requirements: 1. Have the necessary investment in a commercial enterprise. 2. Have an investment of at least $500,00 to $1 million.* 3. You plan to create permanent full time jobs to at least 10 qualified U.S workers. *The direct EB5 investments need a minimum of $1 million while EB 5 regional centers typically require a minimum of $500,000. EB 5 Visa USA Investment TypesDirect EB-5 InvestmentConsidering an EB 5 Visa? You'll have two choices: Direct Investment. This is where you invest in a new business, and you need to create 10 full time jobs in the process. It can be any type of business as long as you can create jobs for the U.S citizens. The starting investment will depend on the Targeted Employment Area (TEA). It can be a rural area or any area with an unemployment rate of at least 150%. TEA is incredibly important because if you are near the TEA, your starting capital will reduce to $500,000 instead of $1 million. So when you are thinking of opening shop, the first thing to think about is how are you going to create and sustain 10 full-time jobs. On average, startups can only sustain 5 full-time jobs. To fix this, open up businesses in multiple locations so you can create 10-full time jobs. This will then allow you to obtain an EB5 green card. Regional Center InvestmentRegional Center Investment is the most popular way of getting an EB-5 Green Card. This is because you can take advantage of indirect job creation and it lessens the difficulty of meeting job creation requirements under the EB5 program rules. It is created to promote capital investments, economic growth and job creation that benefits the US economy. Regional Centers are typically involved in the development of residential properties, hotels, hospitals, and other industrial projects.
To qualify as a Regional Center, apply for the USCIS approval first. You need to prove that your business aspires to focus one region in the country and how you can promote economic growth. Your business needs to present a concrete business plan, reports and models that showcases how your business is planning to improve the region's economy and open opportunities. Regional Center approval rate is high. In fact, the total number of Regional Centers approved to date is 865. These have 500 active and existing projects. Among these projects, there's a chance that there are similar projects that can be approved. Each project has its own risks. These risks can be classified as low, medium and high. The way it is classified is determined by a set of criteria, Regional Centers have a low return on investment. It can get as low as 0.5% to 1% on ROI. But that isn't limited to that amount as some Regional Centers can reach up to 6% in ROI. Keep in mind that an investment with a high return comes with high risks, but that doesn't necessarily mean that the ones with a low return doesn't come with risks. Because of this, it is highly recommended to seek professional advice first. Whether it is about a legal or business-related, a professional advice can help you make a sound decision regarding Regional Center Investments. Before you make an investment, consult your investment advisor first. Remember that you'll be investing $500,000 to $1,000,000 and it will be at risk for 5 to 6 years to come. Your investment advisor will help you create the best investment decisions. You also need the help an immigration lawyer and other lawyers for the legal to handle the legal side of it. Also, when choosing a Regional Center take a look at their team and track record. Check out the number of projects completed, the number of approvals, and the projects overseen that returned capital. These factors aren't just the only things to consider when choosing a Regional Center to invest $500,000 on. You also need to consider the developer and the borrower of the money as they will be the ones signing the loan agreement and they'll be responsible for generating the rate of return for 5 to 6 years. Looking at the Regional Center track record is great, but you should also dig deeper and see the developer and the borrower's ability to return the capital. Take a look at the kinds of projects that were able to complete in the past and the success rates of the projects done via the EB 5 program. As an investor, you'll also be the lender in the project which means the position of the EB5 investor should also be determined. For example, in a $100 million project, $20 million can be given by the developer, $50 million from the bank and the remaining $30 million could be gained from investors. This means that the bank will have the first position to foreclose the project when something goes wrong. However, this will still depend on the loan terms and the presence of a collateral. The second priority will be given to EB-5 investors. Unless there's something left, they won't be able to receive anything. In determining the viability of the project consider doing a financial analysis first. If you don't know how it's done, consult your financial professional as they'll be able to pinpoint the various types of financial investments they have completed and the risks that were mitigated in the process. There are two agencies responsible for overseeing capital raising. These are the Securities and Exchange Commission and the Financial Industry Regulatory Authority. These agencies are responsible for the EB 5 program that is why they are strict in making Regional Centers be in compliant with the laws. They ensure that no center is operating under the table that can be risky and damaging to Regional Centers. They are involving securities broker-dealer in the country to raise the necessary capital for that. Another factor to consider is the developer. There's a huge amount of developers that aims to be a Regional Center. This means that expect to find a slew of good and bad developers. Although the impact of a bad developer is low, you still need to make a sound decision. You need to make sure to check the developer before pursuing with the application. And finally, as an investor consider the project's Job Creation model. You need to closely study this as it is your gateway to securing a Green Card. There are plenty of pre-approval projects available and most come with documents, business plans, and economist reports that were submitted even before the investor is able to file I-526 on the project and USCIS' approval. With pre-approved project, the U.S government can be assured that the required jobs will be created after an investment has been made in an ares and a certain amount of money has already been spent. It isn't all about endorsing projects. Investment At-RiskWith this loan model, the investor will be putting a $500,000 investment at risk for 5 to 6 years after selecting a Regional Center Investment. This often puts in a lot of confusion to investors, so let's clear it up.
Basically, any form of investments come with the risk of losses and gains. When you are investing at-risk, it doesn't necessarily mean that it will be at risk most of the time. You'll need careful planning and designing to mitigate these risks. There are already plenty of projects in the market that were able to make high returns because they were designed with a high risk in mind. Your strategy as an investor will determine your risk appetite and the results you want to achieve. Remember that investments need to be "At-Risk" as it is required by law. An EB5 investment needs to be "At-Risk" in order to qualify for the program. Any investor that says otherwise doesn't know or understand what an EB-5 investment is all about. EB-5 Job Creation RequirementsIn order to qualify for an EB5 application, you need to create a minimum of 10 full-time jobs. When you choose Direct Investment, you'll be responsible to create and maintain these jobs until you get your hands on the Green Card. If you choose Regional Investment, it will be the Center and the developers task to create these jobs. However, under this option the developer needs to prove that there are jobs created under the $500,000 minimum investment. You'll receive the document from Regional Centers and developers at the time of the filing of I-829 Removal Conditions Application.
You can also preserve 10 full-time jobs when you make an investment into an existing business. This can usually happen when an applicant decides to invest in a business that is on the brink of closing or experiencing losses that could result in employees losing their jobs. How to Get an EB5 Visa for Indian CitizensFor the EB 5 US investment visa application to be successful, you need to entrust the application process to professionals that knows the ins and outs of your finances, investments and the law. There are a lot of factors that you need to understand when you apply for the program and doing it on your own will just make things a lot complication.
EB5 contains two sides - the investment side and the immigration side. For your application to be successful, you need to make sure that both of these sides go hand-in-hand with each other. Once you've successfully covered both sides, you can submit an I-526 immigrant petition by Alien Entrepreneur. You can fund the application from your own money or have it funded via a loan or gift funds. Should you prefer to use a loan, make sure that it is a secured loan. Gift funds, on the other hand, are the money given by your friends, colleagues, relatives and family members with no obligation whatsoever. It can also be a gift from a parent to the son or daughter who is attending college or graduating from school. They can pass a temporary work visa just like the Optional Practical Training or HB-1, but they should show no interest in going back to the home country. The average processing time for an I-526 application can be between 16 to 18 months. Once approved, the investor will have the option to adjust the status and obtain a conditional green card especially if they are physically and legally present in the country. It is also possible to go through the consular processing in his home country and get the conditional Green Card once he arrives in the U.S. A conditional Green Card is no different from a permanent Green Card in terms of rights and privileges. It has the same rights and privileges to an investor and the same rights of a U.S citizen. The only difference is the validity period. An immigrant can transfer and work anywhere in the country and go back to his country visa-free. His family will be given the privilege to attend school, start a business and settle in the U.S soil. WIth a temporary Green Card, the validity is only two years. The investor will have to get and present the documents to prove that they are able to create the required minimum of 10 full-time jobs before the Green Card expires. The lawyer will then file an I-829 Petition by Entrepreneur to Remove Conditions on Permanent Resident Status. Once approved, the investor and his family will be able to obtain permanent green cards. This process could take from 18 to 28 months. Remember that when the petition is on-going, the investor's Green Card status will be extended and it will have no effect on the legal status in the country. Non-Chinese investors will benefits from I-820 Green Card that can last for 5 to 6 years. You will not be able to apply for the I-526 unless you've made an EB5 investment, especially when you choose the Regional Center approach. The Center will only issue the packet once the investment has been made. To obtain your permanent green card, you'll have to wait for 1 to 2 years. |
U.S. Citizenship and Return of Capital
Five years after the Green Card has been obtained, the EB-5 investor as well as his family can apply to become U.S citizens. If your goal is to live and work in your home country and in the U.S make sure carefully discuss this with your immigration lawyer. This is because there are certain requirements to meet and you need to be physically present in the US to become a permanent resident.
After the investor is able to procure his permanent Green Card status, he can get back his capital and the loan already paid by its borrower. However, this will still depend on your Regional Center's exit strategy.
Every Regional Center has its own exit strategy and it could be any of the two strategies they typically implement.
The first strategy is to sell the project. Whatever they get from the project, they can use it to pay off the loan - this is if the sale is over the loan amount.
For example, The project which has started in $100 million will increase its value in time and could be sold for $125 million after 6 years. Once sold, the profits will be more than enough to pay off a $100 million loan.
The next option is about refinancing. The $100 million investment can cost $125 million after 5 to 6 years. This will be easier for you to get another loan to pay off the bank or get an EB 5 loan.
After the investor is able to procure his permanent Green Card status, he can get back his capital and the loan already paid by its borrower. However, this will still depend on your Regional Center's exit strategy.
Every Regional Center has its own exit strategy and it could be any of the two strategies they typically implement.
The first strategy is to sell the project. Whatever they get from the project, they can use it to pay off the loan - this is if the sale is over the loan amount.
For example, The project which has started in $100 million will increase its value in time and could be sold for $125 million after 6 years. Once sold, the profits will be more than enough to pay off a $100 million loan.
The next option is about refinancing. The $100 million investment can cost $125 million after 5 to 6 years. This will be easier for you to get another loan to pay off the bank or get an EB 5 loan.
Investor Visa Program Benefits for Indians
To get a permanent residency in the U.S, consider the EB5 Investor Program. Through this program, the investor can live, work and retire on any place in the country, his or her children can attend college at the same place the US citizen attends and many other benefits of a U.S citizen.
There is also a privilege of being able to work in the United States even without a visa. After 5 years, the investor is able to meet the necessary requirements and conditions, they can apply for U.S citizenship.
Through the Investor Visa Program, the investor needs to invest $500,000 in a Regional Center. To meet the minimum requirements, simply start a business or get funds from various sources.
When everything is settled and the investor is able to earn a Green Card and be a U.S citizen, he has the option to sponsor family members. This process could take about 10 to 15 years and it depends on the availability of the bist. Parents can benefit from sponsorship as parents with a Green Card status can sponsor their children for just 6 months to 1 year.
Other benefits include:
Live and work anywhere in the U.S
No visa sponsor requirements
No need for H-1B work visa to be employed.
In the event of a political change in his/her home country, the investor and his/her family can gain entry to the U.S without delay.
There is also a privilege of being able to work in the United States even without a visa. After 5 years, the investor is able to meet the necessary requirements and conditions, they can apply for U.S citizenship.
Through the Investor Visa Program, the investor needs to invest $500,000 in a Regional Center. To meet the minimum requirements, simply start a business or get funds from various sources.
When everything is settled and the investor is able to earn a Green Card and be a U.S citizen, he has the option to sponsor family members. This process could take about 10 to 15 years and it depends on the availability of the bist. Parents can benefit from sponsorship as parents with a Green Card status can sponsor their children for just 6 months to 1 year.
Other benefits include:
Live and work anywhere in the U.S
No visa sponsor requirements
No need for H-1B work visa to be employed.
In the event of a political change in his/her home country, the investor and his/her family can gain entry to the U.S without delay.