Why eb 5

There are four steps in the EB-5 petitioning process that an immigrant investor should be prepared to complete to become a U.

The EB-5 applicant must first find a suitable project which they believe will meet the program requirements. When selecting an EB-5 eligible investment, consider these two desired outcomes: Green Cards, and return of capital. The first relates to likelihood of immigration benefits, the second relates to likelihood of having your capital returned in a timely manner. TEA designation applies to projects in either a rural area or in a high unemployment area. See a map of all TEAs. Job creation is a critical requirement to EB-5 success.

Investments must result in the creation of 10 full-time U. EB-5 investments in the now-expired Regional Center Program allow for indirect and induced jobs to count for job creation. The permanent direct EB-5 program only counts direct jobs directly by the business receiving the capital investment. Citizenship and Immigration Service USCIS will defer to previous petitioner approvals in the same project, so if a project has received investor approvals, or if the New Commercial Enterprise NCE requested an exemplar approval , then investors can have much more confidence that their petition will be acceptable to the immigration service; but it is no guarantee of approval if there have been "material changes" to the project since those approvals.

Know that an investor approval or exemplar approval does not mean the project will definitely create the estimated jobs. EB-5 investors want to be confident that their capital will be returned in full — if not actually deliver some attractive rate of return. Key drivers that help determine the strength of an investment include the capital stack, and developer equity which shows skin-in-the-game developer equity is almost universally in a lower position in the capital stack then EB-5 money.

Ideally, EB-5 money is in " first position" in the capital stack and is secured fully by equity in the project. Another aspect to look for is exit strategy: when your loaned investor capital is returned to you. You want your exit strategy to match up with your I filing date, the time at which your EB-5 investment capital no longer must be " at risk. Historically, an EB-5 project that was likely to produce immigration benefits was not often one that would offer a high rate of return.

Higher rates of return generally indicate more risk. But as the market evolves, legitimate EB-5 investments are offering better returns. Hold each other accountable. Please visit the EB-5 Factsheet. Visit our Success Stories page to learn about the wide range of job-creating investments the EB-5 industry facilitates. First Name. Last Name. Suite Washington, DC Suite Washington, DC info iiusa. EB-5 Myth Versus Fact. For EB-5, there are 10, visas available annually. Until , EB-5 did not reach its annual 10, visa limit, therefore any petitioner who had an I approved would have a visa available to them and their family.

Since when Mainland China-born petitions reached retrogression because they hit their 7. These changes required investors to provide proof that EB-5 investments originate from lawful sources and that investors are personally involved with their EB-5 project, and they prohibited investment return guarantees.

However, the ruling in Chang v. The number of EB-5 applicants significantly dropped after the new regulations were enacted. The AAO attempts to ensure that EB-5 regulations are uniformly applied to all new applications and, to that effect, made four important precedent decisions in the s: Matter of Ho, Matter of Hsiung, Matter of Izummi, and Matter of Soffici.

These precedents are still binding on current EB-5 applications. The Immigration Act of created the program to facilitate U. Congress and USCIS have made a number of further EB-5 reforms aimed at eliminating fraud, standardizing application adjudication, increasing the application process, and dedicating more staff to the program. There are several requirements that foreign investors must meet to qualify for an EB-5 visa. Investors must make the required capital investment in a U.

Regardless of the amount, the EB-5 investment must lead to the creation of 10 fulltime U. EB-5 investments must also be made in an approved business entity. Approved business entities include new for-profit commercial businesses that can take one of many business structures. EB-5 visa applicants can also invest in regional centers that oversee EB-5 investment projects. There are four main steps in the EB-5 visa application process.

First, applicants must locate the U.