Foreign investment is a powerful tool to grow a nation’s economy while benefiting investors funding projects beyond their own borders. Savvy governments provide incentives to encourage foreign investment in U.S. enterprises, especially those that create jobs and grow local economies. Enhancing positive economic impact was a major motivation behind the 1990’s legislation that created the EB-5 immigrant investor visa that allows foreign investors to become lawful permanent residents through investments in U.S. business ventures and development projects.[1] The EB-5 visa expands opportunities, but still has been not been implemented to its fullest extent due in large part to the dearth of applicants to date. Professional services that facilitate the application process and assist potential investors to zero in on the best investment opportunities increase the odds of success and maximize returns.
According to EB-5 regulations, 10,000 visas can be issued annually to those who commit to investing $1 million (or $500,000 in targeted employment areas – TEA’s – that are considered to be in the greatest need of development). Each investment must generate a minimum of ten full-time jobs and the investor must play a policymaking or management role in the project. If the I-526 investor petition is approved, the investor submits an application for a 2-year period of conditional permanent residency. If the investment is sustained and the requisite jobs created during the conditional residency period, the investor can apply to have the residency conditions removed by submitting an I-829 petition.[2]
While the EB-5 visa is an attractive option for foreign investors, it has been severely and surprisingly underutilized, with only a fraction of available visas claimed annually, and a mere 7,377 investors achieving removal of conditions between fiscal years 1991 and 2014.[3] The paucity of successful applicants is thought to be due in part to the extensive demands of the EB-5 application process, the negativity and challenges that the EB-5 program has faced over the years, the uncertainty that is seen to be involved in the underlying investments and the lack of widespread awareness that the EB-5 visa is a “real immigration option”.[4]
| Fiscal Year | I-526 Approvals | I-829 Approvals |
| 1991 | 0 | 0 |
| 1992 | 240 | 0 |
| 1993 | 384 | 0 |
| 1994 | 407 | 15 |
| 1995 | 291 | 111 |
| 1996 | 616 | 344 |
| 1997 | 1,110 | 718 |
| 1998 | 358 | 104 |
| 1999 | 141 | 86 |
| 2000 | 167 | 30 |
| 2001 | 44 | 52 |
| 2002 | 69 | 198 |
| 2003 | 132 | 36 |
| 2004 | 131 | 217 |
| 2005 | 187 | 206 |
| 2006 | 344 | 108 |
| 2007 | 485 | 117 |
| 2008 | 642 | 161 |
| 2009 | 1,265 | 350 |
| 2010 | 1,369 | 274 |
| 2011 | 1,571 | 1,067 |
| 2012 | 3,677 | 736 |
| 2013 | 3,699 | 844 |
| 2014 | 4,925 | 1,603 |
| TOTALS | 22,254 | 7,377 |
Source: USCIS
Whether the EB-5 applicant has the goal of investing directly into a business in which (s)he will be involved while creating jobs, or plans to invest in a more passive way through a regional center, expert consultation can make the process smoother and improve the likelihood of a robust investment and secure residence status which will eventually lead to a removal of residency conditions (I-829). Available services include tests to measure an applicant’s readiness for an EB-5 visa application and programs that guide the participants in the creation of an application that has a high likelihood of success. Seeking qualified immigration and corporate legal and general business counsel is critical to navigating the EB-5 maze. Additionally, project marketing and business plans that use accurate analysis aid clients in fine-tuning investment strategies.
Additionally, complicated tax rules are often seen as a deterrent to overseas investment and relegate viable opportunities to the sidelines. An experienced consultant or tax attorney can provide answers to questions about taxation and offer pointers on issues of concern.
Investing overseas when one is not armed with the best advice can lead to frustration when obstacles arise. Unfortunately, many applicants end up shelving projects, packing up and going home. Professional services that provide information and support can enable investors to see their projects through to the end and create optimal returns. Collecting up-to-date information concerning regulations, licenses and permits required for projects, etc., takes the guesswork out of project management. If armed with the right advice and professional service providers, foreign investors can navigate the complicated EB-5 process to a successful conclusion.
To inquire about our turnkey EB-5 services such as our best-in-class Matter of Ho-compliant business plans, project assessment and ancillary services, please contact us at info@ecouncilinc.com.
e-Council Inc.’s website, newsletter and other forms of communication contain general information about legal matters. The information is not legal advice and should not be treated as such. You must not rely on the information on this website as an alternative to legal advice from an attorney or other professional legal services provider. For specific questions about any legal matter please consult with an attorney or other professional services provider.
[1] https://www.dhs.gov/xlibrary/assets/CIS_Ombudsman_EB-5_Recommendation_3_18_09.pdf
[2] http://www.uscis.gov/working-united-states/permanent-workers/employment-based-immigration-fifth-preference-eb-5/eb-5-immigrant-investor-process
[3]http://www.uscis.gov/tools/reports-studies/immigration-forms-data/data-set-form-i-526-immigrant-petition-alien-entrepreneur
[4]http://www.uscis.gov/sites/default/files/USCIS/Outreach/Feedback%20Opportunities/Draft%20Memorandum%20for%20Comment/EB_5_Adjudications_Policy2.pdf