60 Second Guide to EB-5 Immigrant Investor Visa
In just 60-seconds, you’ll learn important details of the EB-5 immigrant investor program.
0:60 Green card fast track.
If you have the financial means and interest in quickly obtaining a green card, then the EB-5 immigrant investor program may be right for you. An immigrant investor seeks to obtain a U.S. green card in a short period of time and receive priority immigrant visa processing through commercial investments in the U.S. From the date of investment, the EB-5 visa may allow you to obtain a conditional green card in approximately 1 to 1.5 years and a permanent green card within 4-5 years for you, your spouse, and children.
0:48 Investment Choices
There are two investment choices for an immigrant investor.
First, the Standard Program requires investing $1,000,000 and creating 10 full-time jobs anywhere in the U.S. This means you may create a new business, purchase an existing business, or expand a troubled business located anywhere in the United States, so long as you invest $1,000,000 in the commercial enterprise and create 10 full-time jobs (or maintain the number of existing employees at no less than the pre-investment level for a period of at least 2 years if you invest in a troubled business).
Alternatively, you may invest $500,000 in an accredited USCIS Regional Center Program located within specific geographical areas in the United States. The Regional Centers seek to promote economic growth through increased export sales, improved regional productivity, creation of new jobs, and increased domestic capital investment in rural areas or areas with high unemployment. Investors who choose this path will sign a partnership agreement with the Regional Center and are not required to actively manage the partnership since it is sufficient to participate as a passive partner who has an ownership interest.
An EB-5 attorney can help you choose an investment option.
0:36 EB-5 means safety, stability, and improved quality of life.
There are numerous benefits for green card holders and those with U.S. citizenship. Chinese nationals interested in applying for EB-5 do so in pursuit of: (1) safety; (2) stability; and (3) improved quality of life.
Safety has become a top concern for many high net worth Chinese families since crime in China is quickly rising and many families have experienced kidnappings and extortion. The U.S. boasts a well established criminal system which both prevents and deters crime. Additionally, with increased economic disparities between the very rich and the very poor in China, crime and corruption has led to economic and political instability. When will the Chinese government confiscate your wealth? More Chinese than ever before appreciate America’s economic and political stability. Lastly, China’s environmental woes have driven many Chinese to immigrate to the U.S. With China home to 20 of the 30 most polluted cities in the world, the U.S. with strong environmental laws is a paradise.
0:25 EB-5 $500,000 Pilot Program is not forever.
Of the 10,000 EB-5 visas available annually to qualified individuals, 3,000 are set aside for those who invest $500,000 in a United States Citizenship & Immigration ("USCIS") designated "Regional Center." This $500,000 pilot program is not permanent and has to be renewed by Congress. In September 30, 2009, Congress renewed the pilot program last minute and the pilot program will expire on September 30, 2012. As with any important life changing matters, it is best to begin the process sooner rather than later. This is especially true when dealing with your immigration matter since the entire process will take a few years to complete.
0:18 Protect your Investment and Immigration opportunities
With approximately 102 approved Regional Centers (an increase of about 27 since December 2009), an immigrant investor must understand that not all Regional Centers are created equal. In an October 2009 EB-5 conference held in San Francisco, one EB-5 expert believed that 25% of existing Regional Centers will fail in the next 2 years. Regional Centers are merely “designated” by the USCIS to operate in Targeted Employment Areas—areas of high unemployment or categorized as rural—which allows an immigrant investor to invest a discounted amount of $500,000. This designation does not mean the U.S. government approves of the actual investment product nor does it guarantee a return on your investment or even a green card.
In addition, having a Regional Center sponsored by a local or state government does not carry the same weight or protection in the U.S. as it does in China. Since the USCIS controls the program, only the USCIS can determine whether a particular individual and Regional Center investment qualifies under U.S. laws.
In early May, for example, the USCIS threatened to revoke a city sponsored Regional Center’s designation for its failure to follow strict immigration laws and for misrepresenting its non-viable investment opportunities as viable to immigrant investors abroad. Despite the intent to revoke letter, it was recently reported that the troubled Regional Center continued to solicit immigrant investors, with the backing of the city, as a viable investment product. If the troubled Regional Center goes bankrupt, immigrant investors will lose not only their money, but also an opportunity to obtain a green card. Clearly, an immigrant investor must conduct their due diligence and retain qualified lawyers and experts before deciding to invest in a particular Regional Center.
0:11 Unauthorized practice of law and other unlawful practices may lead to loss of investment and immigration opportunities
Many Regional Centers may also be skirting U.S. securities laws and many of their Chinese agents are paid exorbitant sums as “finders’ fee.” These potentially unlawful practices concern EB-5 immigration attorneys because there are inherent conflicts of interest issues. There are also many immigration consultants, immigration firms, Chinese lawyers, and even English language schools in China who are surprisingly offering EB-5 related services. Their misunderstanding of complex U.S. laws may lead to nightmare results.
Only U.S. licensed attorneys may lawfully provide an immigrant investor with legal advice and services related to EB-5 since it involves complex U.S. immigration laws. This is a protection afforded to you through the U.S. government’s strict regulations of the legal field. The only sure way to protect your investment and immigration opportunities is to contact an EB-5 immigration attorney.
0:03 Know your rights
Unlike China, U.S. federal and state laws are well established and implemented to protect everyone. When considering EB-5, make sure you contact an EB-5 immigration attorney and other licensed experts in order to better protect your investments and your once in a lifetime immigration opportunity.
_________________________________
Wayne J. Chi represents high net worth immigrant investors from his offices in San Francisco, California and Honolulu, Hawai`i. Wayne is fluent in both Mandarin Chinese and English. Please contact Wayne with any questions or comments. This article was originally published in Mandarin in the World Journal, America’s largest daily Chinese newspaper.
0:60 Green card fast track.
If you have the financial means and interest in quickly obtaining a green card, then the EB-5 immigrant investor program may be right for you. An immigrant investor seeks to obtain a U.S. green card in a short period of time and receive priority immigrant visa processing through commercial investments in the U.S. From the date of investment, the EB-5 visa may allow you to obtain a conditional green card in approximately 1 to 1.5 years and a permanent green card within 4-5 years for you, your spouse, and children.
0:48 Investment Choices
There are two investment choices for an immigrant investor.
First, the Standard Program requires investing $1,000,000 and creating 10 full-time jobs anywhere in the U.S. This means you may create a new business, purchase an existing business, or expand a troubled business located anywhere in the United States, so long as you invest $1,000,000 in the commercial enterprise and create 10 full-time jobs (or maintain the number of existing employees at no less than the pre-investment level for a period of at least 2 years if you invest in a troubled business).
Alternatively, you may invest $500,000 in an accredited USCIS Regional Center Program located within specific geographical areas in the United States. The Regional Centers seek to promote economic growth through increased export sales, improved regional productivity, creation of new jobs, and increased domestic capital investment in rural areas or areas with high unemployment. Investors who choose this path will sign a partnership agreement with the Regional Center and are not required to actively manage the partnership since it is sufficient to participate as a passive partner who has an ownership interest.
An EB-5 attorney can help you choose an investment option.
0:36 EB-5 means safety, stability, and improved quality of life.
There are numerous benefits for green card holders and those with U.S. citizenship. Chinese nationals interested in applying for EB-5 do so in pursuit of: (1) safety; (2) stability; and (3) improved quality of life.
Safety has become a top concern for many high net worth Chinese families since crime in China is quickly rising and many families have experienced kidnappings and extortion. The U.S. boasts a well established criminal system which both prevents and deters crime. Additionally, with increased economic disparities between the very rich and the very poor in China, crime and corruption has led to economic and political instability. When will the Chinese government confiscate your wealth? More Chinese than ever before appreciate America’s economic and political stability. Lastly, China’s environmental woes have driven many Chinese to immigrate to the U.S. With China home to 20 of the 30 most polluted cities in the world, the U.S. with strong environmental laws is a paradise.
0:25 EB-5 $500,000 Pilot Program is not forever.
Of the 10,000 EB-5 visas available annually to qualified individuals, 3,000 are set aside for those who invest $500,000 in a United States Citizenship & Immigration ("USCIS") designated "Regional Center." This $500,000 pilot program is not permanent and has to be renewed by Congress. In September 30, 2009, Congress renewed the pilot program last minute and the pilot program will expire on September 30, 2012. As with any important life changing matters, it is best to begin the process sooner rather than later. This is especially true when dealing with your immigration matter since the entire process will take a few years to complete.
0:18 Protect your Investment and Immigration opportunities
With approximately 102 approved Regional Centers (an increase of about 27 since December 2009), an immigrant investor must understand that not all Regional Centers are created equal. In an October 2009 EB-5 conference held in San Francisco, one EB-5 expert believed that 25% of existing Regional Centers will fail in the next 2 years. Regional Centers are merely “designated” by the USCIS to operate in Targeted Employment Areas—areas of high unemployment or categorized as rural—which allows an immigrant investor to invest a discounted amount of $500,000. This designation does not mean the U.S. government approves of the actual investment product nor does it guarantee a return on your investment or even a green card.
In addition, having a Regional Center sponsored by a local or state government does not carry the same weight or protection in the U.S. as it does in China. Since the USCIS controls the program, only the USCIS can determine whether a particular individual and Regional Center investment qualifies under U.S. laws.
In early May, for example, the USCIS threatened to revoke a city sponsored Regional Center’s designation for its failure to follow strict immigration laws and for misrepresenting its non-viable investment opportunities as viable to immigrant investors abroad. Despite the intent to revoke letter, it was recently reported that the troubled Regional Center continued to solicit immigrant investors, with the backing of the city, as a viable investment product. If the troubled Regional Center goes bankrupt, immigrant investors will lose not only their money, but also an opportunity to obtain a green card. Clearly, an immigrant investor must conduct their due diligence and retain qualified lawyers and experts before deciding to invest in a particular Regional Center.
0:11 Unauthorized practice of law and other unlawful practices may lead to loss of investment and immigration opportunities
Many Regional Centers may also be skirting U.S. securities laws and many of their Chinese agents are paid exorbitant sums as “finders’ fee.” These potentially unlawful practices concern EB-5 immigration attorneys because there are inherent conflicts of interest issues. There are also many immigration consultants, immigration firms, Chinese lawyers, and even English language schools in China who are surprisingly offering EB-5 related services. Their misunderstanding of complex U.S. laws may lead to nightmare results.
Only U.S. licensed attorneys may lawfully provide an immigrant investor with legal advice and services related to EB-5 since it involves complex U.S. immigration laws. This is a protection afforded to you through the U.S. government’s strict regulations of the legal field. The only sure way to protect your investment and immigration opportunities is to contact an EB-5 immigration attorney.
0:03 Know your rights
Unlike China, U.S. federal and state laws are well established and implemented to protect everyone. When considering EB-5, make sure you contact an EB-5 immigration attorney and other licensed experts in order to better protect your investments and your once in a lifetime immigration opportunity.
_________________________________
Wayne J. Chi represents high net worth immigrant investors from his offices in San Francisco, California and Honolulu, Hawai`i. Wayne is fluent in both Mandarin Chinese and English. Please contact Wayne with any questions or comments. This article was originally published in Mandarin in the World Journal, America’s largest daily Chinese newspaper.
