EB-5 INVESTMENT

TRADITIONAL EB-5

EB-5 INVESTMENT VISA

The EB-5 Visa Program allows a person and his or her immediate family to obtain a Green Card (live permanently in the U.S.) by investing in an enterprise that creates jobs for qualifying U.S. workers.

For foreign investors seeking the freedom and flexibility to live and work in the United States, this route avoids the requirement of family connections, securing a job or running an actively traded business.

TRADITIONAL EB-5

THE DIFFERENT EB-5 INVESTMENT VISA OPTIONS

The Entrepreneurial EB-5 Visa can be through both a direct (non regional center) project or using a regional center project.  MSA attorneys will strategize with the investor entrepreneur to determine the best and most cost-effective solution.

EB-5 Entrepreneurial

EB-5 Entrepreneurial

EB-5 Pooled Direct (Passive)

EB-5 Pooled Direct (Passive)

EB-5 Regional Center Program

EB-5 Regional Center Program

SIMILARITIES BETWEEN THE OPTIONS:

Same amount of investment

Many believe that the regional center allows the investment to decrease from the required USD 1.8 million to USD 900,000.  This is false.  The decrease in investment funds is due to the geographical location of the project.  If the project is located in a Targeted Employment Area (TEA), the required amount of investment then becomes USD 900,000.

10 full-time permanent jobs must be created per an investment to qualifying U.S. workers Qualifying US workers include: U.S. citizens, Legal Permanent Residents (LPRs), Immigrants authorized to work in the U.S. (e.g., asylees, conditional residents and refugees).

Those not qualified:

  • Investor and his/her immediate family members
  • Persons in nonimmigrant status (e.g., H1-B)

Full-time position means a position that requires a minimum of 35 hours/week

DIFFERENCES BETWEEN THE OPTIONS:

Job Creation

  • Direct Project – only includes direct jobs (W-2s / I-9’s required)
  • RC – includes direct, indirect, and induced jobs (basically, more jobs can be created with an RC involved)

 

Corporate Structure

  • Direct Project – Rigid structure
  • RC – Flexible structure allowing for corporate layering

 

Investor’s Role

  • Direct Project – allows more flexibility and responsibility
  • RC – limited involvement
TRADITIONAL EB-5

EB-5 DIRECT INVESTMENTS VS. REGIONAL CENTER

ENTREPRENEURIAL
DIRECT EB-5 INVESTMENT
REGIONAL CENTER
ENTREPRENEURIAL
Active Business Operation Management
DIRECT EB-5 INVESTMENT
day-to-day or through policy
REGIONAL CENTER
day-to-day or through policy
ENTREPRENEURIAL
Applicable Business Sectors
DIRECT EB-5 INVESTMENT
all that creates required jobs
REGIONAL CENTER
all that creates required jobs
ENTREPRENEURIAL
Business Plan
DIRECT EB-5 INVESTMENT
Matter of Ho compliant
REGIONAL CENTER
Matter of Ho complaint and RC business plan
ENTREPRENEURIAL
EB5 Investor Eligibility
DIRECT EB-5 INVESTMENT
Accredited investor preferred, not essential
REGIONAL CENTER
Accredited investor preferred
ENTREPRENEURIAL
EB5 Investor Participation
DIRECT EB-5 INVESTMENT
directly affiliated with US entity
REGIONAL CENTER
capital investment through a Regional Center sponsorship
ENTREPRENEURIAL
EB5 Investor Relationship with US Entity/Project
DIRECT EB-5 INVESTMENT
direct
REGIONAL CENTER
indirect
ENTREPRENEURIAL
Escrow of Funds
DIRECT EB-5 INVESTMENT
may be utilized
REGIONAL CENTER
may be utilized
ENTREPRENEURIAL
Job Creation Requirement
DIRECT EB-5 INVESTMENT
10 full-time jobs for qualified US workers
REGIONAL CENTER
10 full-time jobs for direct. Also count indirect and induced jobs
ENTREPRENEURIAL
Job Counts
DIRECT EB-5 INVESTMENT
direct employment
REGIONAL CENTER
direct/indirect/induced
ENTREPRENEURIAL
Job Creation Verification
DIRECT EB-5 INVESTMENT
job projection/payroll tax returns
REGIONAL CENTER
project specific economist report/expenditure invoices/subject to final approval of USCIS
ENTREPRENEURIAL
Project Specific Economist Report
DIRECT EB-5 INVESTMENT
Not required
REGIONAL CENTER
required
ENTREPRENEURIAL
Proof of EB5 Investment Funds
DIRECT EB-5 INVESTMENT
must be verifiable
REGIONAL CENTER
must be verifiable
ENTREPRENEURIAL
Capital Investment Range
DIRECT EB-5 INVESTMENT
$900,000 minimum
REGIONAL CENTER
$900,000 minimum or higher raise per project
ENTREPRENEURIAL
Targeted Employment Area (TEA)
DIRECT EB-5 INVESTMENT
if qualified, eligible for the reduced $900,000/EB5 unit
REGIONAL CENTER
if qualified, eligible for the reduced $900,000/EB5 unit
ENTREPRENEURIAL
Transactional Documents
DIRECT EB-5 INVESTMENT
PPM required unless one investor apply for himself
REGIONAL CENTER
PPM required
ENTREPRENEURIAL
USCIS Application Process
DIRECT EB-5 INVESTMENT
Historically shorter than RC
REGIONAL CENTER
As posted by USCIS or longer
TRADITIONAL EB-5

SOURCE OF FUNDS

It is imperative to explain the source of the investors funds in detail. Common source of funds (SOF), the way investors accumulated his/her investment funds, include the following:

  • Employment earnings and bonuses
  • Earnings from investor’s business
  • Sale of business assets
  • Inheritance
  • Gift
  • Stocks

  • Retirement funds
  • Proceeds from a real estate transaction
  • Home equity loan
  • Loan obtained from the investor’s business
  • Loan obtained through a financial institution
  • Loan obtained from a friend or family

Note: Loan funds must be secured by collateral assets of the investor.

If you have multiple SOFs, then each source based upon the path will be counted as an individual source.

EB-5 IMMIGRATION PROCESS TIMELINE

  • PRELIMINARY STAGE
    Due dilligence on EB-5 projects
  • Engage EB-5 attorney
  • Confirm EB-5 project
  • Document collection on source of funds
  • Transfer funds to project's escrow account


  • STAGE 1
    Submission of I-526 petition
  • USCIS Receipt Notice (2 weeks after submission)
  • USCIS’ Decision


  • STAGE 2
    Preparation of (AOS) or Consular Processing (CP)
  • Filing of AOS (I-485 application) or CP (DS-260 application)
  • Receipt of (AOS) or approval of immigrant visa (CP)
  • Entrance into U.S. (CP) within 6 mos. of receiving visa
  • Receipt of conditional green card (CP)
    If paid U.S. immigrant fee


  • STAGE 3
    Preparation of I-829 application
  • Filing of I-829 application
    (1 year 9 months after receipt of conditional green card)
  • USCIS’ Decision

*Investors have the option of U.S. citizenship 5 years after initial date of condi-tional green card

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