When considering EB 5 investment Visa, investors must be active in the business, either in a managerial role or by writing policy. Passive investments will not qualify, so applicants must invest in a new commercial enterprise or an original business. Existing businesses may be purchased and restructured to create a new business, or the existing business can be converted into a new company.
Investing in a new commercial enterprise:
As a foreign investor, you can apply for an EB-5 visa to invest in a new commercial enterprise in the United States. To qualify, you must invest at least $1.8 million or $900,000 in a business that creates at least 10 new full-time jobs in the U.S. The new business must be located in a targeted employment area, such as a rural community or with high unemployment rates. It must also benefit domestic markets by creating 10 new full-time jobs for U.S. citizens and non-citizens. The EB-5 investor may not include family members in this count.
The immigrant investor must create at least 10 full-time jobs for US citizens for direct investment. These jobs must be W-2 types of jobs, and all workers must be U.S. citizens or lawful permanent residents. Immigrant investors’ spouses, children, and other family members cannot count as jobs. If they are part of the same company, they do not count as jobs, but they do count as jobs if they reside in the same city.
In addition to a complete project proposal, an investor must also present documents proving his or her investment. These may include a Regional Center project, a new commercial enterprise, or a franchise business. Proof that the investment is coming from a lawful source is essential. Evidence of lawful ownership of the property or other assets is required, and tax statements for the past five years. Proof that the funds are lawfully acquired is also required.
Ageing out of the EB-5 visa program:
You’ve come to the right place if you’ve been thinking about applying for an EB-5 visa but have been hesitant because you think you don’t have enough money. While the EB-5 visa program has a low investment threshold of $500,000, it requires a much higher investment – one million dollars – in a local business or project. To be eligible for an EB-5 visa, you need to create 10 jobs or more. This isn’t a small amount – in 2013 alone, investors invested over $1.6 billion in U.S. companies.