|
Investment
EB-5: Investors
If you are an active investor in a U.S. enterprise in which you are investing at least $1 million (US), or $500,000 (US) in certain special locations, and the enterprise creates a certain number of jobs, then you may be able to obtain U.S. Permanent Residency under the EB-5 category.
If you qualify for EB-5 status, it can be an advantageous category for obtaining U.S. Permanent Residency because you can self-petition, the priority date is usually current, and you can obtain Conditional Resident status upon filing the EB-5 petition and making the initial showing, thereby often avoiding the necessity of obtaining some type of temporary status while waiting for the Permanent Residency Status. The major disadvantage is the amount of money which must be invested, and the number of jobs which must be created. As a result, some individuals who are from countries which have E visa treaties with the U.S. choose to obtain temporary E visas which they renew indefinitely.
Under U.S. immigration law, 10,000 immigrant visas per year are available to qualified individuals seeking permanent resident status on the basis of their investing in a commercial enterprise. This is known as the "EB-5" category.
Permanent resident status based on EB-5 eligibility is available to investors, either alone or coming with their spouse and unmarried children. Eligible foreign nationals are those who have invested -- or are actively in the process of investing -- the required amount of capital into a new commercial enterprise that they have established. They must further demonstrate that this investment will benefit the United States economy and create the requisite number of full-time jobs for qualified persons within the United States.
Upon filing EB-5 and making the initial showing, the foreign national first obtains Conditional Resident status, and the only at the end of the process does the foreign national obtain Permanent Resident status, if the petition is successful.
EB-5 KEY REQUIREMENTS
In general, EB-5 "eligible individuals" include those:
- Who establish a new commercial enterprise 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; and
- Who have invested -- or who are actively in the process of investing -- in a new commercial enterprise:
- at least $1,000,000, or
- at least $500,000 where the investment is being 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 OMB; and
- Whose engagement in a new commercial enterprise will benefit the United States economy and:
- create full-time employment for not fewer than 10 qualified individuals; or
- 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.
SPECIAL REGIONAL CENTER PROVISIONS
Of the 10,000 investor visas (i.e., EB-5 visas) available annually, 5,000 are set aside for those who apply under a pilot program involving an CIS-designated “Regional Center.”
A "Regional Center:"
- Is an entity, organization or agency that has been approved as such by the Service;
- 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.
Foreign national investors must:
- Demonstrate that a "qualified investment" (see below) is being made in a new commercial enterprise located within an approved Regional Center; and,
- Show, using reasonable methodologies, that 10 or more jobs are actually created either directly or indirectly by the new commercial enterprise through revenues generated from increased exports, improved regional productivity, job creation, or increased domestic capital investment resulting from the pilot program.
EB-5 Successful Cases: Limited Liability Partnerships investing in U.S. REAL ESTATE
A "garden variety" direct investment in U.S real estate would NOT qualify for obtaining an EB-5 investor green card because that type of investment is considered a PASSIVE investment, and one of the key requirements of the EB-5 category is that the investment must be an ACTIVE investment, i.e., one which involves directing or managing an active enterprise. However, there have been successful EB-5 cases which involve indirect investments in real estate which get around the active investment requirement through the use of a Limited Liability Partnership.
For example, there have been a number of successful EB-5 cases which are based on $525,000 investments in real estate, Limited Liability Partnerships in a Regional Center. These real estate partnerships are in the business of purchasing and developing U.S. real estate. The hiring of the requisite number of employees is satisfied because the Limited Liability Partnership must hire sufficient workers to develop the U.S. real estate. The investors receive a share of the monthly rental income after the property renovations are complete, and a share of capital gain upon sale of the property. The investors are not expected to be involved in day-to-day management; instead, each investor has a policy making role.
A Law Firm such as the Immigration Law Center could represent an EB-5 investor in this type of immigration case by reviewing the particulars of the investment to determine whether there is a reasonable chance that the USCIS will approve the case, preparing the necessary documentation, filing the case, and representing the investor before the applicable government agencies. In addition, depending upon the state of the investment, an attorney (licensed in the particular state) could represent an investor in the business investment, itself.
For EB5 Investors, investing in "Regional Centers" provides key advantages. We have compiled a list of "Active" EB5 Regional Centers.
The following are active Regional Centers as of March 30, 2007.
- California Consortium for Agricultural Export
- Philadelphia Industrial Development Corporation
- South Dakota International Business Institute
- The Gateway Freedom Fund/AKA: Golden Rainbow Freedom
- Iowa Department of Economic Development (IDED)
- Capital Area Regional Center
- The Redevelopment Agency of the City of Vernon Regional Center
- Mayor's Office of Economic Development (New Orleans)
- Whatcom Opportunities Regional Center, Inc. (WORC, Inc.)
- Vermont Agency of Commerce and Community Development
- Pennsylvania Department of Community & Economic Development Regional Center
- CMB Export LLC
- Global Century Development Group I, LP (Global Century)
- Metropolitan Milwaukee Association of Commerce (MMAC)
|
|
Address:
132 East Colonial Drive, Suite 211
Orlando, FL 32801
Telephone:
(407) 835-1009
|
