The American Dream: EB-5 Visa Opportunities

The American Dream is alive and well, and people across the world are fulfilling their own U.S. immigration goals through the EB-5 Visa Program.  Compared with other countries, the United States is still a safe place to invest money, raise a family and start a business.  The EB-5 visa and the various paths it offers allows immigrants to live and work anywhere in the country.  There are even passive investment opportunities for those who don’t wish to work, or would like to work someplace other than the EB-5 project they invest in.

The United States’ foundation was built by immigrant communities, and despite economic hardship across the globe, people still flock to the U.S. for better opportunities.

How can the EB-5 visa benefit you and your family?  U.S. immigration law is structured in a way that doesn’t offer many opportunities for permanent residency (green card) for people without ties to the United States.  Unless you have a relative to sponsor you, or an employer willing to sponsor you, the EB-5 visa may be your only option.

The EB-5 Visa Program allows foreign nationals the opportunity to make a qualified investment into a U.S. business in exchange for their green card.  There are no English language requirements, family ties or job offers needed.  Provided the investor invests the requisite funds they likely qualify.

What are your options for EB-5 Investments?  Most EB-5 investment opportunities offer flexible options for potential investors.  Depending on your needs and goals, you can take an active role in the project or a completely passive role.  The investment amount is $1 Million but may be reduced to $500,000 in certain designated areas.

Often, an investor wishes to fund the EB-5 investment and not worry about the day-to-day operations of the business and immigration requirements.  This is absolutely possible and encouraged by immigration attorneys.  As an EB-5 investor, you don’t want to be burdened with EB-5 compliance and immigration issues – leave those worries up to the EB-5 project management.

Once invested, you are free to live and work (or not work) anywhere in the United States. 

To learn more about the EB-5 Visa Program and how you can make your American Dream a reality, contact Kyle Barella at General Counsel, P.C., 703.556.0411, or by email at kbarella@gcpc.com.  You can visit our website at www.eb5investmentlaw.com.  Our office is conveniently located in the Washington DC Metro area.

Three Paths to EB-5?

When researching the options for making an EB-5 investment, clients often hear about the two EB-5 investment paths - direct and indirect.  But are there really three paths?  The answer to this question is yes and no.  This article will detail the different options a potential investor has when deciding to make their EB-5 investment.

By far the most popular option for EB-5 is the indirect regional center investment.  The indirect regional center investment allows the client to make a completely passive investment in a project that will be the sole responsibility of the developer to maintain.  These investments are generally loan based, but in some instances may be equity based investments.

The EB-5 investor will not have any managerial or day-to-day responsibility.  They simply invest their money and leave it in the hands of the developer to meet the immigration requirements so they can become full-fledged green card holders.  It’s an affordable option because the vast majority of regional center projects are located in targeted employment areas that allow for the reduced investment of only $500,000.

What are the positive attributes of an indirect regional center investment?  The reduced investment amount is what makes the regional center path most appealing to clients.  Some investors also enjoy not having to worry about the day-to-day burden of running the business.  While a client may have created a successful business in their home country, they may be unfamiliar with US business practices and culture and opt to have the project managed for them.  For these investors, the regional center path fits perfectly into their immigration plan.

What are the negatives of an indirect regional center investment?  Regional center investments will offer a low return.  This isn’t to say that the project is bad – it’s just the nature of EB-5.  A typical regional center project will generally yield a 0.5% - 1% return.  This isn’t very high, so investors wishing to obtain a larger return should choose a different path for their EB-5 investment.  Clients should be very wary of regional center projects offering them large returns.  Another potential negative aspect is that the EB-5 investor doesn’t have any decision making power in the business.  This may not be ideal for clients that consider themselves to be savvy investors.

So what are the options for investors not wishing to invest through the indirect regional center path?  Here is where the discussion of three paths to EB-5 comes up.  Many clients (and immigration attorneys) misinterpret the rules regarding a direct (non regional center) investment.  Often they think the investor must be involved in the day-to-day operation and running of the business.  They believe they have to live in the same city and go into the business daily to qualify for EB-5.  That is one option, what I refer to as a “true” direct EB-5 investment, but it’s not the only option for direct EB-5.

So what are the two paths under the direct EB-5 umbrella?  It’s first important to examine the rules regulating the requirement that the EB-5 immigrant investor be engaged in the management of the new commercial enterprise.  The EB-5 Program requires the immigrant investor to be engaged in the management of the new commercial enterprise, either through the exercise of day-to-day managerial responsibility OR through policy formulation.  8 C.F.R. §204.6(j)(5). 

For investors courageous enough to take the plunge and run their own EB-5 business, they can do so through the “true” direct EB-5 path.  They will be responsible for the creation and day-to-day management of the business, as well as meeting all the immigration requirements.  Their investment return will be based solely on their own personal efforts.  This path can prove to be risky and should only be undertaken by clients confident in their ability to meet all requirements under the program.

This may work for some investors, but the majority of EB-5 clients do not want to assume full responsibility for their immigration future.  These clients may benefit from a more “hands off” direct investment.  This “hands off” direct investment path is great for investors wishing to invest in smaller projects that may yield significantly higher returns than the indirect regional center investment.  In conformity with the rules, these investors will have a policy-making role by being a corporate officer or member of the corporate board of directors.

These investors get the best of both worlds.  Unlike the regional center path they have some control over the business and typically receive a larger return.  However, there is no requirement for then to run the day-to-day operations and they leave the responsibility of meeting the immigration requirements to the project developer.  The EB-5 investor is free to live and work anywhere in the United States, regardless of the business location.  This path is ideal for all EB-5 investors frustrated with the lack of control and low returns of an indirect regional center investment.

For more information on the EB-5 Visa Program and which EB-5 path is most suited for your investment needs, contact General Counsel, PC and speak to one of our Washington DC EB-5 attorneys. 

www.eb5investmentlaw.com | www.generalcounsellaw.com

6849 Old Dominion Dr. Suite 220, McLean, VA 22101 | 703.556.0411 | kbarella@gcpc.com

Washington DC EB-5 Attorneys | Northern VA EB-5 Attorneys

The Cost of an EB-5 Regional Center Project Investment

As an immigration attorney representing EB-5 investors, one of the frequently asked questions is: what is the total cost of an EB-5 Regional Center investment?  Savvy investors understand, in order to go through the EB-5 Visa process, they will incur other expenses in addition to the $500,000 capital investment.

So what is the cost of an EB-5 investment?  Unfortunately, there is no set dollar amount.  Each client’s case is distinct, and there are a multitude of factors that may influence their costs.  This article will address the most common EB-5 costs - but it’s important to keep in mind that expenditures for your specific case may vary.

The Investment:
One cost that is universal for all clients is the invested capital.  Most Regional Center projects are located in a Targeted Employment Area, which allows for a reduced investment amount of $500,000.

Legal Fees:
Just as you wouldn’t forgo obtaining a doctor to perform a surgery, you also want to be sure to retain a competent EB-5 attorney to file your petition.  Depending on whether your lawyer bills a flat fee or hourly rate for an EB-5 investment, you can expect to pay anywhere from $10,000 to $20,000 for legal services.  Depending on the firm you choose, this may or may not include the services of an EB-5 Investment Advisor.

Project Administration Fees:
The majority of projects out there charge an administration fee when subscribing to their project.  The typical administration fee ranges from $30,000 to $60,000.  These fees are generally used to pay marketing costs, as well as “finder fees” for agents abroad.

Filing Fees:
With every I-526 Petition filed, USCIS requires the payment of a filing fee.  Currently, the filing fee for an I-526 Petition is $1,500.

Translation Fees:
USCIS requires any documentation or evidence not in English to be accompanied by an English translation.  Further, in their latest EB-5 stakeholder meeting, USCIS indicated that the entire document will need translating and abstract translations are not accepted.  Translation service fees vary depending on the document content and number of words.  You can expect to pay between $0.25 and $0.50 per word.

Miscellaneous Costs:
If you choose to travel to the US to speak with Regional Centers or your attorney, you might incur additional expenses such as travel, housing and visa costs.

Although these are a few of the most common expenses associated with the EB-5 investor visa, additional costs may arise depending on your individual case.  You may also be able to mitigate the costs of EB-5 through varies means.  A conservative estimate of an EB-5 investment from start to finish will be around $568,000.

Barella Law | +1 (239) 228-2895 | kbarella@barellalaw.com | www.barellalaw.com

The Information contained in this blog is for information purposes only, and should not be considered legal advice for any individual case or situation.  The information provided is not a substitute for consultation with an attorney.  No attorney/client relationship is created by the information contained herein.