The location where the commercial enterprise will be principally doing business or creating jobs determines the minimum capital amount required to invest in an EB5 program. Effective November 21, 2019 the minimum capital amount is generally $1,900,000 (up from $1,000,000) or if the investment is in a commercial enterprise located in a rural area or area of high unemployment, the amount drops to $900,000 (up from $500,000).
In addition to government filing fees associated with the filing of the EB5 visa processes and legal fees, an investor who invests in a regional center will also pay an administrative fee to the Regional Center.
Regional Centers are organizations authorized by USCIS to promote capital investment projects structured to accept EB5 investor capital towards the attainment of US permanent residence. EB5 investments in regional centers generally eliminates the need for the investor to participate in the day-to-day operations of the new commercial enterprise and rather limits the investor’s activities to policy-making decisions in the role of limited partner or member. A non-regional center direct investment on the other hand requires active participation and control of the project by the EB5 investor.
Another advantage in investing in an NEC affiliated with a regional center is the inclusion of indirect jobs created by the EB5 investment whereas a direct investment unaffiliated with a regional center can only count the number of direct permanent full time jobs created by the investment towards satisfying the job creation requirement.
All investments in commercial enterprises are subject to loss. An investor seeking EB5-based permanent residence must consider his/her ability to manage and control an investment in a new commercial enterprise, direct the business with a view towards growth, and have sufficient financial wherewithal to sustain him/herself during the initial start-up or restructuring stages of the investment in order to maintain the capital investment at risk throughout the entire process and attain the number of full time hires required.
Additionally, if investing in a regional center, the investor must bear in mind that not all regional centers are created equal. An investor is responsible for diligently investigating an EB5 opportunity before investing in it. USCIS clearly states on its website that approval of an EB-5 regional center application does not constitute a government endorsement of activities of that regional center; guarantee compliance with U.S. securities laws; or minimize or eliminate risk to the investor. Potential investors are encouraged to seek professional advice when making any investment decisions.
Historically, USCIS has processed the initial EB-5 petition within, on average 18-22 months from the date of filing of the petition. Investors are urged to not make plans to immigrate, divest oneself of assets, undertake commitments in the U.S. until the petition is approved.
Upon approval of the petition, the immigrant visa process or adjustment of status (if residing in the U.S. when the petition is approved) can take 6-8 months.
Naturalization is the process of applying for U.S. citizenship. Some individuals are born outside of the U.S. to a U.S. citizen parent and may be unaware that they already are U.S. citizens. Other individuals who have entered the U.S. to work and live permanently and who have their green card may apply to become naturalized after a certain period of time.
Generally, in order for a person to naturalize he or she must meet the following criteria:
This is a promotional communication from Sonia Col & Associates, P.C. and should not be construed as legal advice or a legal opinion on any specific facts or circumstances. The contents are intended for general information purposes only, and you are urged to consult a lawyer concerning your own situation and any specific legal questions you may have. Any tax information or written tax advice contained herein (including any attachments) is not intended to be and cannot be used by any taxpayer for the purpose of avoiding tax penalties that may be imposed on the taxpayer.