EB-5 Program

08.08.2018

EB-5 Program

Few Facts about EB-5

In 1990, the US Congress enacted immigration visa program named EB-5 for qualified foreigners whom invest in a business that benefit the US economy and create at least 10 permanent full-time jobs for qualified US workers. The investment fund requirement from the program is 1 million US dollars, and this amount is reduced to 500.000 US dollars if invest in rural or high unemployment areas (TEA). Every year, there are 10,000 Green cards will be issued to the investors under this program and 3,000 among them will be for foreign investors to invest in Regional Center. US Citizenship and Immigration Services (USCIS) estimates that more than 90% of the number of visas issued under the EB-5 program is through the Regional Center.

Economic Development Regional Center Program

To encourage foreign investment into the United States through the EB-5 program, Congress created a pilot program called the EB-5 Regional Center in 1992. By this way, Congress authorized the Immigration Department (formerly the Department of Immigration and Citizenship “INS” but changed to the US Citizenship and Immigration Services “USCIS ” in 2003) to appoint qualified companies as “Regional Center,” meaning these companies are capable to receive funds to stimulate the United States economy. Regional Center could be public companies, private businesses or government agencies whose investment goal targets within defined geographical areas.

Investment program through Regional Center grants 3,000 Green cards annually to investors who each investing in designated Regional Center. These 3,000 Green cards are not limited; they are available for investment through the Regional Center. The program has been extended several times and the most recent renewal will be expired on September 30, 2016.

The EB-5 program through Regional Center does not require foreign investors directly recruit 10 US workers. However, these foreign investors need to create 10 jobs directly or indirectly from the amount of the investment fund.

To become a Regional Center, enterprises need to submit an application to the USCIS. An application must include: (1) type of business that receives capital from investors, (2) jobs created directly or indirectly from investment funds, and (3) a positive impact on the economy from this investment. The investment must be in accordance with United States securities regulations, which are enforced by the state securities laws and the United States Securities Commission and Trading.

After the USCIS approved applications from enterprises seeking for Regional Center status, investors can apply for a Green card through the EB-5 program by investing in an approved Regional Center. However, it is important for investors to meet the requirement of creating 10 jobs by providing in documents the plan of how those jobs either directly or indirectly will be created from the investment project.

Before participating in the EB-5 program through Regional Center, every investor must apply individually to USCIS. USCIS determines whether investors qualify for a visa through EB-5 or not. The visa evaluation process by USCIS includes history background check of the investors including investment funds (to determine the legal origin), family history, representative of the investors and members of their family whose age is under 21.

Investors will receive a conditional Green card good for two years. At the end of this period, investors will have to submit an application to the USCIS to prove that their investment money is “at risk” during the past two years and the number of jobs that have been created. Once this application is approved, the investors and their family members will become the U.S. permanent residents and eligible to apply for US citizenship. The total duration of the EB-5 process lasts about five years or more depending on the progress of the program, and the profile of the investor.

The Benefits of EB-5

1. Processing time. The greatest advantage of the EB-5 program is the processing time. Compared to family reunification program, the EB-5 program takes 10-16 months to get permanent resident card (conditional Green Card) for a whole family.
2. EB-5 requires few identification documents and yields high acceptance rate (currently at 92%)
3. Investor family members including spouse and unmarried children under 21 will be granted Green cards.
4. No requirement for education level, English proficiency, age or business experience.
5. No requirement for operating the business directly. Investors do not need to manage a business or project to maintain the rights of permanent resident.
6. Reside freely anywhere in the United States. Investors and their family are free to live and/or do business anywhere in the U.S.
7. Children of the investors can receive the following benefits:
– Tuition free at public schools in the United States from first grade to 12th.
– No requirement to go back to Vietnam after graduation.
– Opportunity to find jobs after graduation is the same as that of the natives.
– High opportunity to work for corporations and government agencies.
– Salaries and bonuses are always higher than oversea students.
8. No Visa requirement for entering the United States. Investors can enter more than 185 countries worldwide without a visa if they granted a conditional Green Card.
9. Petition for family members. Investors can petition for their family member(s) to the U.S. right after obtaining a Green Card.