This program allows conditional residency for applicants who invest between $500,000 and $1,000,000 in a new commercial business which employs 10 U.S citizens or authorized immigrant workers full time. The applicant has to engage in the business through day to day management or policy formations.
The amount of investment varies based on the geographical area where the investor makes the investment, also on whether the person is investing in a targeted employment area (a rural area) as designated by the state. The applicant must also demonstrate that the investment will benefit U.S economy and create a designated number of new employment positions or salvage a designated number of existing positions in troubled company.
The EB-5 Visa holder receives conditional permanent resident status for the first 2 years. Within 90 days of the 2 year anniversary of entering the U.S on an EB-5 visa, the visa holder must apply to remove conditions on the permanent resident status.To remove the conditions, the visa holder must demonstrate that certain requirements have been met, like the number of full time employees and documentation of the required investment.
If all program’s requirements are met, the visa holder will then receive a 10-year permanent resident card, otherwise the period of legal residency will be terminated and permanent resident visa will be expired.
There would be 10,000 investor immigrant visas available per year which will be given to qualified applicants seeking permanent resident status based on their engagement in a new commercial enterprise. Out of this 10,000 investor visas (available per year), 5000 are set aside for those who apply under a pilot program through a designated regional center.
Requirements for EB-5 applicants in a new business
- The minimum investment of $1,000,000. (For investment in a designated targeted employment area, minimum investment requirement is $500,000 is required.)
- Create full time employment positions for 10 U.S citizens or authorized workers (other than the investor’s family members)
- Have active rule in day to day management of the business or directly manage the business through formulating business policy as a member of the board of directors.
- Have significant benefit for the economy of United States by providing goods and services to US market.
Requirements for EB-5 applicants in a troubled business
- Invest in a business which has existed for at least 2 years.
- Invest in a business that has incurred a net loss based on generally accepted accounting principal, for 1 to 2 year period before the petition is filled.
- The loss for one to two year period must be at least equal to 20% of the business’s net worth before the loss.
- Maintain the number of jobs at no less than the pre-investment level for a minimum 2 years period.
- Have active role in day to day management of the troubled business or manage it directly through formulating business policy.
- The same investment requirements of the new commercial enterprise investment apply to a troubled business investment of $1,000,000 to $500,000 in a targeted employment area.
E-2 Investor Visa
E-2 visa is for the applicant who intend to enter the United States solely to develop and direct the operation of an enterprise in which the alien has invested, or is actively in the process of investing a substantial amount of capital in a bonafide enterprise. To determine whether the investment is “substantial” the Department of States employs a relative proportionality test. Usually the lower the cost of the enterprise, the higher proportionally, the investment must be to considered substantial. For example in case which the total amount of investment is $100,000 or less, the investor needs to provide the total of investment. The applicant’s funds must be at risk. It means that the capital have t be subjected to partial or total loss if investment fortunes reverse. Applicants are also able to place funds in escrow pending the approval of E classification provided that there is a large mechanism that irrevocably commits funds if the application is approved.
Requirements for E-2 Visa applicants
E-2 investor visa applicants must meet the following requirements to qualify a visa:
- The investor must be a national of treaty country.
- The investment must be substantial. It must be sufficient to ensure the successful operation of the enterprise. The percentage of investment for a low cost business enterprise must be higher than the percentage of investment in a higher cost enterprise.
- The investment must be real operating enterprise. Uncommitted funds deposited in a bank account are not considered as a n investment.
- The investment must generate a significant economic impact in the United States.
- The investment fund must be at risk in the commercial sense and the investor must have control of the funds.Loan secured with the assets of the investment enterprise is not allowed.
- The investor should come to United States to operate and manage the enterprise.