EB-5 Visa Program Big Picture

March 8th, 2011 | No Comments

It is so easy to get caught up in the details of the EB5 visa program and the many rules and requirements that it defines.  Foreign investors also have a hard time understand how these rules and requirements really affect them and how they can best go about participating in the program. Here is a big picture look at the program and some key things to look for.

First, this program is about mutual gain. The US government supports eb-5 visas because we need the investment.  Foreign nationals enjoy the program because it allows them to obtain permanent residency in the US.  The truth behind both these positions is that the US desperately needs funding on a local level to spark economic output while the investor might be looking for ways to diversify their investments and wealth away from their home country.

Second, there are only a few major rules. The rest of this is all steps in a process.  The major rules is that you must invest either $500,000 or $1,000,000 into a new or existing business and hire ten full time employees within two years.  That’s it.  You can participate through a regional center or on your own.  This method will include different rules and advantages, but essentially, the EB-5 visa program is all about ten jobs in two years.

So what does this mean for you?
This whole program means that an investor must find an attorney to help them with the immigration process and an investment.  On the investment end, an investor needs to find a eligible EB-5 visa project that will (1) create ten full time jobs and (2) be sustainable enough to support those jobs. 

This also means that an investor must find a reputable and ethical regional center to invest through or they must find an business to start.  The bottom line is this business needs to create ten full time employees within two years.

There are two reasons why it is so important to understand the EB-5 visa projects.  The first is because it must sustain the ten jobs.  Second, it is important to understand what model the regional center is using (unless you do it on your own) because it will dictate the nature of the exit strategy.

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