Posts Tagged ‘ american eb5 visa ’

Using Rental Income for an EB-5 Investment

Posted on: August 9, 2013 by in EB-5
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bigstock-Citizenship-documents-43205116Foreign citizens interested in applying for an EB-5 investor visa will no doubt have several questions about the visa itself and the application process. They may wonder what they need to do to qualify for the program and how to go about applying for the visa once the qualification requirements are met. The reason for so much hesitation is not unfounded, as U.S. immigration policy is inherently complex and continues to evolve. This is one of the main reasons why foreign investors should work with a qualified and experienced immigration attorney to facilitate the process.

Funding the EB5

In order to qualify for an EB-5 investor visa, foreign investors must invest at least $500,000 into an American based venture from a predesignated, hard hit and financially struggling industry, or at least $1,000,000 into a business of any other industry. For many foreign investors, coming up with the minimum required amount of investment capital is not a challenge. However, the United States has notoriously stringent proof of income requirements when it comes to foreign funds being allowed to enter the U.S. economy. Any income earned by a foreign investor to be invested into a U.S. based business venture must have been earned through a provably legitimate source. The federal government requires foreign investors to show that their investment funds were legitimately earned in order to avoid promotion of organized crime and terrorism.

Income Legitimacy

So long as an income has been earned legitimately, there are nearly no limits on where the funds can come from. If a foreign investor earns the money from rental property, this should not present any problems. To show the income was earned legitimately, foreign investors can present bank statements and tax documents along with an EB-5 visa application.

Other Requirements

In addition to meeting minimum investment amount requirements, the cash invested must create at least 10 jobs for American workers, if the cash is invested in a new U.S. based venture, or must expand a business’s net worth or employee force by at least 40%, if the cash is invested into an existing U.S. based venture. Additionally, the investment must have already been made, or a substantial step toward the investment already made, by the time the EB-5 visa application is submitted.

One thing that investors need to realize is that simply making an investment is not enough. After an application is approved, a conditional visa can be issued. If the business venture into which the capital was invested, however, is unable to sustain the 10 America jobs or the 40% expansion of the business for a set amount of time, then the investor will be unable to transition from the conditional visa to a permanent visa.

Regional Center Benefits

Along with investing directly into a business venture, foreign investors can invest in Regional Centers, which are privately held corporate entities that direct and manage EB-5 investment funds into regionally based business ventures on behalf of foreign investors. This offers a bit of security to the foreign investor because those who invest in Regional Centers are more likely to see their investment succeed than those who try investing into a business directly.

EB5 Visas and Foreign Professionals

Posted on: July 26, 2013 by in EB-5
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bigstock-Charismatic-Manager-During-A-M-11046482Is the EB5 Visa a Good Idea for Foreign Professionals?

The answer to this question largely depends on what the professional’s intentions are once they reach the United States. For the purposes of this discussion, a professional is someone who would need to be licensed, certified, or accredited in order to work in his or her profession in the United States.

Doctors, lawyers, teachers, engineers, and architects are just some of the types of professionals who would have to meet U.S. standards before being allowed to practice professionally in this country. Whether or not a person is awarded an EB5 investor visa will have no bearing on the person’s ability to practice in their former profession.

Therefore, if a person’s only desire is to work in his or her former profession in the United States, the EB5 investor visa may not be the best route to U.S. residency. Not only would the person need to come up with the minimum investment amount to qualify for the EB5 visa, but the person would then need to pay to meet U.S. licensing and certification requirements for the profession he or she wants to work in.

Who Should Consider the EB5

If foreign citizens don’t care about whether or not they will be able to work in their profession of choice, then the EB5 visa may be something they will want to consider. If approved for an investor visa, foreign investors will also be able to get visas for the members of their immediate families, including husbands, wives, and children up to age of 21. Once approved for an investor visa, a foreign investor may also be able to help more distant family members get their own visas, but these would be issued on a case by case basis following a standard application process.

Who Can Qualify

Almost any foreign citizen who meets certain financial requirements can qualify for an EB5 investor visa. The government requires foreign investors to invest at least $500,000 in certain hard hit American industries or $1,000,000 in any other. The cash must be invested in a U.S. based venture and must lead to the creation of at least 10 jobs for qualified U.S. workers. The law also requires that the money invested remain “at risk” or, in other words, the funds can’t be guaranteed by any secondary agreement (otherwise, the money would be a loan, not a true investment).

Word of Advice

Once an investor invests any amount of money into a U.S. venture, there is no guarantee that the investor will make a profit or even earn back any of the original investment at all. This is a risk of making an investment.

Foreign investors, before investing any cash, are encouraged to contact a U.S. immigration attorney who can ensure the venture is legitimate and qualifies as an investable business under EB5 rules. Simply investing in a U.S. venture without first having some due diligence performed can be a very costly mistake that may only prolong the EB5 approval process.