The Facts About the EB 5 Investor Program

Posted by Admin on July 22, 2016 under Business | Comments are off for this article

EB 5 Investor Program

EB 5 Investor Program

The EB 5 Investor Program is one of the most recently created way of getting a green card and currently one of the most popular. It has become the premier way for potential immigrants to the United States to be able to accelerate their immigration process by making use of their capital. Essentially, the way the EB5 investor program works is that if a potential immigrant invests capital into an American business that is located in a high unemployment area, and if the investment is enough to create or retain at least ten American jobs. These jobs can not be filled by the investor or his immediate family.

In the past, the only way to invest via the EB5 program in order to accelerate a green card application was to fund the opening and operations of an entirely new business. This allowed some talented entrepreneurs to quickly build up businesses large enough for green card acceleration, but many investors are averse to the kind of risk that opening an entirely new business represents. In light of this, there are now two other possibilities for EB5 investment that generally have lower risk associated with them.

One if these is to invest in a business that already exists but is classified as a “Troubled Business” under federal regulations due to insolvency or lack of cash flow or capital. This allows investors to work with a company that will be staffed by people generally more familiar with local markets in the area where the business is located. Investing in existing businesses is generally recognized as being a lower risk than investing in businesses that have not yet opened. The other possibility for theĀ EB 5 investor program is a third party investment vehicle called a Regional Center. These Regional Centers can be either privately or publicly managed, but in either case the investment corporation is responsible for creating the jobs that will qualify under the EB5 program.

The Regional Center investment option has proven particularly appealing for many investors. Most Regional Centers are very well managed funds, and they can invest in a large number of businesses so that the failure of one or even several of the businesses in which they are invested will not damage the stability and health of the fund. However, these funds are generally more expensive to invest in than a business to create the same number of jobs, as they may charge administrative fees. Nonetheless, the greatly reduced degree of risk has made this option one of the most popular.

A foreign national investor can submit a petition to be accepted into the EB5 program if he can demonstrate that he possesses the capital with which to make these investments with sufficient confidence. If the petition is accepted, the foreign national is granted residence in the United States for two years, so that he or she can set up their investments and become familiar with the American investing environment. If the creation of 10 jobs is demonstrated by the end of that period, permanent residence will be granted.

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