Investor Green Card Popularity Surges
Filings Almost Double for EB-5 visas
By Leon Snaid*
The EB-5 visa program gives green cards to foreign investors who invest $1m in a commercial enterprise that will create jobs for 10 people. The amount is reduced to $500K in rural and high unemployment areas.
Regional Centers are investment opportunities that are approved by the USCIS for such investments. When people hear that the Immigration Service first must approve the investment opportunity before it is designated as a Regional Center for EB-5 visa petitions, they assume that their investment will be safe and that they are guaranteed green cards. In reality, all the Immigration Service is saying by granting Regional Center status is that if everything goes according to the business plan, each investment will generate jobs for 10 workers.
The USCIS disclosed at an EB-5 Visa Stakeholder Meeting in June, 2010 that there were more petitions for green cards through the EB-5 Visa category in the first 7 months of this fiscal year than in the entire 2009 fiscal year. Investments in Regional Centers accounted for approximately 90-95% of these petitions.
According to the USCIS they received 1100 EB-5 visa petitions from October 2009 to May 2010 and approved 955 of such petitions.
The petitioner initially receives a two-year Conditional Green Card and at the second anniversary must prove that the business is operating according to the business plan and the money remains invested.
Choice of Regional Centers Expands
There are now ninety-four Regional Centers in which an investment can lead to EB-5 visa green cards for foreign investors and their families. The Immigration Service recently published their new list, which includes 29 California Regional Centers. In March 2007 there were only 17 active Regional Centers.
An investment in a Regional Center is becoming an attractive way to get permanent residence, if you have the money. The amount of the investment has not increased in 20 years, but potential investors must be careful. An investment in a Regional Center does not guarantee a green card through the EB-5 visa program.
Regional Centers offer flexibility to an investor. For example, a person may invest in one of the California Regional Centers, while operating a business in Vermont or retiring in Florida. Parents may lend money to their children for the initial investment.
“Which are the best Regional Centers to invest in?”
The choice of investment opportunities in Regional Centers has swelled and people should select investments that suit their investment strategies and which they believe will yield the best results. There are many types of Regional Centers, which include investment opportunities in hospitality, warehousing, real estate, agriculture, manufacture and even the motion picture production.
An investor should consider the types of investments that appeal to him or her. Why would someone invest in vineyards or motion pictures if they do not know the first thing about them?
Source of Funds
There are many issues in the EB-5 visa. What is particularly important is the source of the funds. You must be sure that the source of the funds for the investment qualifies for the EB-visa. Money that is borrowed on the security of the investment or cash that comes from an investor’s corporation does not qualify. The investment must be made directly by the investor. The proof of the source of the funds is critical.
It is possible for the funds to pass through various banking accounts, provided it is possible to trace the funds as being from the investor.
Due Diligence
A person must make specific inquiries with the Regional Center that relate to the likelihood of the business being successful and the probabilities of the investment resulting in a green card.
It is essential to use the services of professionals, because once the money is invested, the investor has very little control over the business. While the EB-5 visa requires an investor to have policy-making decisions, an investor’s input is minimal, when there are many investors.
*Author: Leon Snaid is a Certified Immigration Law Specialist, who is certified by the State Bar of California’s Board of Legal Specialization. www.snaid.com
Warning: The information is the above article is not legal advice and should not be acted upon without first consulting with an attorney.