From Startup to Success: Leveraging the US Investor Visa for Global Entrepreneurs

For those international business professionals who intend to do business and reside in the U.S., the EB-5 visa is ideal. This investor visa program was created in 1990 and offers investors from other countries U.S. permanent residency (green card) for the investor and their family if the investor invests substantial capital in the United States economy. Throughout this blog, we will take our reader through what the EB-5 visa is, the necessary investment, the procedure for applying, the costs, and the time taken.

What is the EB-5 Visa?

The EB-5 visa, or the Immigrant Investor Program, is an avenue that allows individuals to get a green card in exchange for an investment that will help boost the economy of the United States. It provides the applicants a direct route of Immigration to U.S. Permanent Residence for individuals fulfilling some defined Investment and Employment Generation in the U.S. Unlike some other visa categories that are available, the EB-5 visa does not put a premium on the kind of education or professional experience the applicant may possess.

What Are the EB-5 Investment Requirements?

To qualify for an EB-5 visa, applicants must meet certain investment criteria:

1. Minimum Investment Amount:

• The typical minimum investment required is $1.05 million.
•  However, if the investment is made in a Targeted Employment Area (TEA)—usually a rural or high unemployment region where the U.S. government seeks to boost economic growth—the minimum is reduced to $800,000.

2. Job Creation:

• There is a requirement for the investment to generate new or sustain not less than 10 full-time jobs for U.S. workers after the investor has been issued the conditional green card. Ventures that begin through a regional centre can count indirect jobs, thus enlarging the scope of job creation.

3. Commercial Enterprise:

• The investment needs to be in a new business venture within the U.S. The business needs to be profit-making and must be conducting lawful business. It could be a new venture or a second or third business that an entrepreneur wanted to embark on as long as it facilitates the creation of new jobs.

Active Involvement:

• The investor must have some control over the management or policy of the enterprise; however, such control may be minimal. This way, the investor is also in a position where they feel that the business belongs to them, and they must ensure that it thrives.

How to Apply for the EB-5 Visa?

Applying for the EB-5 visa involves several steps:

1. Choose a Qualifying Investment:

• Choose an appropriate investment opportunity, either independently in a new commercial business or in a new commercial enterprise associated with a USCIS-designated regional centre. The regional centres also help facilitate the performance of the obligations for job creation necessary for investors.

2. File Form I-526:

• File Form I-526, entitled Immigrant Petition by Alien Investor, with USCIS. This form should contain evidence of the legitimacy of the investment capital and admissibility in the EB-5 program.

3. Obtain a Conditional Green Card:

• Upon Form I-526 approval, file for a conditional green card by submitting Form I-485 (Adjustment of Status, AOS) if the applicant is in the U.S., or through consular processing if outside the U.S. This green card has a two-year validity, allowing the investor and family to live and work in the U.S.

4. Remove Conditions on Permanent Residency:

• To receive a permanent green card, file Form I-829 within a 90-day period before the expiry of the conditional green card. This form demands evidence that the investment in question created the required number of jobs and that the business is still running.

What is the EB-5 Visa Cost?

The EB-5 visa involves several costs, including:

1. Investment Amount:

• The first cost is the invested amount, which can be $1.05 million or $800,000, depending on the investment location. It is important to note that the invested capital must be at risk, meaning the investment cannot be preserved, and a guaranteed amount of income cannot be provided.

2. Filing Fees:

• Form I-526: $3,675.
• Form I-485: $1,225 per applicant if the application is made within the United States.
• Form I-829: The cost of this form is $3,750, plus an additional $85 biometric fee for each individual applying for the visa.

3. Legal and Administrative Fees:

• Legal fees are usually estimated between $15,000 and $25,000, depending on the complexity of the case. If purchasing through a regional centre, additional administrative costs can range from $50,000 to $70,000. These fees include the costs of organising the investment, which must conform to the rules and regulations of the EB-5 program and include extensive documentation.

What Are the EB-5 Processing Times?

Processing times for the EB-5 visa can vary, often taking several years:

1. Form I-526 Processing:

• The processing time varies between 29.5 and 61 months, depending on factors such as the applicant’s country of origin. Those applying from countries with high participation in EB-5 visas, such as China, India, and Mexico, are likely to spend more time waiting for approval due to visa backlogs.

2. Visa Availability:

• Visa availability can be complicated by demand from countries where the investors hail from, leading to extended wait times. Each country is allocated a certain number of EB-5 visas annually, and when demand exceeds supply, applicants may face delays.

3. Form I-829 Processing:

• After the investor has held the conditional green card, the time it takes USCIS to process Form I-829 ranges from 37 to 63.5 months. During this period, USCIS reviews the investor’s qualifications according to EB-5 program specifications, including job creation.

Conclusion

The EB-5 visa should be considered an important option for international businesspeople to obtain permanent residence in the United States while contributing to the U.S. economy. It is expensive, time-consuming, and may take a long time before the applicant acquires a Green Card. Nonetheless, when the requirements and steps are fully understood, the EB-5 can be effectively navigated by businesspersons.