EB5 Green Card – US EB 5 Investment Immigration Visa
The EB-5 program allows immigrants to invest $500,000.00 to $1 million in a business enterprise in exchange for a green card. To obtain an EB-5 green card a foreign national can get permanent residency status thru the EB-5 Immigrant Investor Program. Currently, the family based immigration petition is taken close to 20 years. The EB-5 Program falls under the employment based immigration with five categories EB-1 to EB-5. Under the EB-5 program, an immigrant investor who invests a minimum of $1,000,000 or $500,000 in a Targeted Employment Area (TEA) to create 10 full time jobs will qualify to get his/her permanent residency status. The EB 5 investor’s immediate relatives (spouse and children under 21) can all get their permanent residency status.
The EB-5 Immigrant Investor Program provides an opportunity to secure alternative financing for projects of all types and sizes. The use of EB-5 financing in real estate development projects has become common following its increased use when the capital markets dried up during the recent recession. In addition to serving as a supplemental funding source for a project, EB5 financing is often less costly than conventional loans.
Working with a Regional Center is particularly beneficial for developers when it comes to meeting the requirement that at least ten (10) new jobs be created for each investor in a project. Congress designed the Regional Center Pilot Program in a way that maximizes the calculation of the number of jobs attributable to the investment. In addition to direct jobs, indirect and induced jobs may also be counted in connection with projects that are sponsored by a Regional Center.
A key factor for a developer considering the use of EB-5 financing in a project is timing. The preparation of the offering documents may be time consuming and the regulatory review process is often prolonged. Typically, interim financing such as a bridge loan must be secured in order to commence construction, with EB-5 financing eventually used to retire the temporary loan. It is important to begin planning well in advance of a project’s intended start date.