USCIS administers the EB-5 program, created by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors. Under a program initially enacted as a pilot in 1992, and regularly reauthorized since then, investors may also qualify for EB-5 classification by investing through regional centers designated by USCIS based on proposals for promoting economic growth. On Jan. 25, 2019, the President signed a law extending the Regional Center Program through Feb. 15, 2019.

All EB-5 investors must invest in a new commercial enterprise, which is a commercial enterprise:

• Established after Nov. 29, 1990, or

• Established on or before Nov. 29, 1990, that is: 1. Purchased and the existing business is restructured or reorganized in such a way that a new commercial enterprise results, or 2. Expanded through the investment so that at least a 40-percent increase in the net worth or number of employees occurs

Commercial enterprise means any for-profit activity formed for the ongoing conduct of lawful business including, but not limited to:

• A sole proprietorship

• Partnership (whether limited or general)

• Holding company

• Joint venture

• Corporation

• Business trust, or

• Other entity, which may be publicly or privately owned.

This definition includes a commercial enterprise consisting of a holding company and its wholly owned subsidiaries, provided that each such subsidiary is engaged in a for-profit activity formed for the ongoing conduct of a lawful business.

Note: This definition does not include noncommercial activity such as owning and operating a personal residence.

Job Creation Requirements 

An EB-5 investor must invest the required amount of capital in a new commercial enterprise that will create full-time positions for at least 10 qualifying employees.

• For a new commercial enterprise not located within a regional center, the full-time positions must be created directly by the new commercial enterprise to be counted. This means that the new commercial enterprise (or its wholly owned subsidiaries) must itself be the employer of the qualifying employees.

• For a new commercial enterprise located within a regional center, the full-time positions can be created either directly or indirectly by the new commercial enterprise. o Direct jobs are those jobs that establish an employer-employee relationship between the new commercial enterprise and the persons it employs. o Indirect jobs are those jobs held outside of the new commercial enterprise but that are created as a result of the new commercial enterprise.

• In the case of a troubled business, the EB-5 investor may rely on job maintenance. o The investor must show that the number of existing employees is being, or will be, maintained at no less than the pre-investment level for a period of at least 2 years.

A troubled business is a business that has been in existence for at least two years and has incurred a net loss during the 12- or 24-month period prior to the priority date on the immigrant investor’s Form I-526. The loss for this period must be at least 20 percent of the troubled business’ net worth prior to the loss. For purposes of determining whether the troubled business has been in existence for two years, successors in interest to the troubled business will be deemed to have been in existence for the same period of time as the business they succeeded.

A qualifying employee is a U.S. citizen, lawful permanent resident or other immigrant authorized to work in the United States including, but not limited to, a conditional resident, a temporary resident, an asylee, a refugee, or a person residing in the United States under suspension of deportation. This definition does not include the immigrant investor; his or her spouse, sons, or daughters; or any foreign national in any nonimmigrant status (such as an H- 1B nonimmigrant) or who is not authorized to work in the United States.

Full-time employment means employment of a qualifying employee by the new commercial enterprise in a position that requires a minimum of 35 working hours per week. In the case of the regional center program, “full-time employment” also means employment of a qualifying employee in a position that has been created indirectly that requires a minimum of 35 working hours per week.

A job-sharing arrangement whereby two or more qualifying employees share a full-time position will count as full-time employment provided the hourly requirement per week is met. This definition does not include combinations of part-time positions even if, when combined, the positions meet the hourly requirement per week.

Jobs that are intermittent, temporary, seasonal, or transient in nature do not qualify as permanent full-time jobs. However, jobs that are expected to last at least 2 years are generally not considered intermittent, temporary, seasonal, or transient in nature.

Capital Investment Requirements 

Capital means cash, equipment, inventory, other tangible property, cash equivalents and indebtedness secured by assets owned by the alien entrepreneur, provided that the alien entrepreneur is personally and primarily liable and that the assets of the new commercial enterprise upon which the petition is based are not used to secure any of the indebtedness. All capital shall be valued at fair-market value in United States dollars. Assets acquired, directly or indirectly, by unlawful means (such as criminal activities) shall not be considered capital for the purposes of section 203(b)(5) of the Act.

Note: The immigrant investor must establish that he or she is the legal owner of the capital invested. Capital can include the immigrant investor’s promise to pay (a promissory note) under certain circumstances.

Required minimum investments are: 

• General. The minimum qualifying investment in the United States is $1 million.

• Targeted Employment Area (High Unemployment or Rural Area). The minimum qualifying investment either within a high-unemployment area or rural area in the United States is $500,000.

A targeted employment area is an area that, at the time of investment, is a rural area or an area which has experienced unemployment of at least 150 percent of the national average rate.

A rural area is any area not within either a metropolitan statistical area (as designated by the Office of Management and Budget) or the outer boundary of any city or town having a population of 20,000 or more according to the most recent decennial census of the United States.

How E-Council Can Help Getting EB-5 visa can be a delicate and difficult process. When a significant amount of money is at stake, you don’t want to attempt the process alone. Hiring an experienced immigration attorney can save you both time and money as you strive for a green card through your enterprise. Here at E-Council we have been helping entrepreneurs and investors alike get EB-5 visa for many successful years. To take advantage of our help and expertise, you can call us at 8667240085 and schedule a consultation today.

The post About the EB-5 Visa appeared first on E-Council Global.

The post Basic Facts About the EB-5 Visa – ACT NOW TO AVOID DISAPPOINTMENT!! appeared first on E-Council Global.

The post The Impact And Evolution Of The EB-5 Program Over The Years appeared first on E-Council Global.

The post Remodelando la Inmigracón Legal – Todo lo que debe saber sobre la Ley RAISE appeared first on E-Council Global.

Many of our clients come to us with the desire to immigrate to the U.S. and start their own business, but are often unsure of which direction to take or how to turn their dream into a reality. For those seeking to invest in a U.S. business, our first question is: have you considered a franchise?

When most people think of a franchise, they envision fast food restaurants, but there are a plethora of franchises available throughout a variety of industries, such as: beauty, education, health and fitness, entertainment, and more. Even the automobile industry has franchises available for purchase. Franchises offer a unique investment opportunity for foreign nationals that allows them to acquire a ready-made, turnkey business, but operate it as their own. Best of all, most franchise opportunities meet the requirements for immigrant investor visas such as EB-5, E-2, and to a limited extent, L-1 (http://ecouncilinc.com/immigration-options-foreign-investors-side-side-comparison-e-2-eb-5/).

Immigration firms, such as ours, may recommend franchises to incoming foreign national investors because they simplify the process of setting up and starting a business in the U.S. Essentially, a franchise is a wildly successful business concept that has been transformed into a brand which, for a fee, shares its concept with outside individuals. Franchisors (the brand) allows franchisees (the small business owner) to make a hands-on investment in tried-and-true business model. They offer support and guidance that an independent business owner would not receive anywhere else. In addition to the training and resources that franchisors provide, franchisors have proven systems and marketing tools already in place to help facilitate the success of their franchisees.[1]

As noted above, an additional benefit of a franchise is  their unique suitability for  immigrant investor visas. When reviewing business visa applications, USCIS tends to ask whether the investment was substantial enough to benefit the U.S. economy and whether the business is likely to succeed? By investing in a franchise, foreign nationals can not only meet the minimum requirements for business investor visas, such as investment amount and job creation, but they also have the weight of an already-proven successful business behind them.

While franchise opportunities can help simplify the application process for immigrant investors, it is still important to use the right team of professionals when working with the U.S. government. e-Council Inc.’s team of experts are equipped with the knowledge and expertise to help get a franchisor ready to seek foreign investors, as well as work with investors seeking the right franchise to invest in.

To find out about professional, credible and comprehensive concierge business immigration services, as well as a variety of ancillary services, all of which are designed to specifically address USCIS’s concerns, contact e-Council Inc. at info@ecouncilinc.com.

e-Council Inc.com’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 your attorney or other professional legal services provider. If you have any specific questions about any legal matter you should consult your attorney or other professional legal services provider.

[1] https://www.entrepreneur.com/article/242848

The post Franchises & Investor Visas: Paving the Way for the American Dream appeared first on E-Council Global.

The EB-5 Immigrant Investor classification was originally established in 1990 by Congress in an effort to help attract capital while creating American jobs by encouraging investment in U.S. businesses, particularly in economically-troubled areas, rural areas and areas with higher-than-average rates of unemployment.[2] The classification has grown in popularity and attracts investors from countries like China, Brazil, India, Vietnam, Canada, Middle Eastern countries and Russia. Wealthy foreign nationals are looking to invest in American businesses, often passively, in exchange for the opportunity to obtain a green card correlating to these investments.

In order to attract foreign capital and secure wealthy foreign investors, businesses need to carefully follow the rules and make sure that the complex legal requirements are met across the board. Working with the right team of professionals, which includes but is not limited to: experienced immigration counsel, securities attorneys, economists, business plan professionals, researchers and accountants, helps to ensure USCIS approval, SEC compliance, and the long-term viability of the investment project.

Before a business can consider raising investment capital, the management team will need to determine that the project is viable from all standpoints, including whether the entity will create the required number and types of jobs, which is the first bar-of-entry to the EB-5 world. The experience of the professional team holding the business and management team’s hands throughout the entire EB-5 process is extremely important and will make or break the project’s ultimate success.

e-Council Inc. can assist business owners in vetting their projects to ensure that they are ready to seek EB-5 capital and investors and can guide them through the complexities of the application and documentation process. The e-Council Inc. team possesses the knowledge and experience needed to understand the ins and outs of the EB-5 program and project viability and marketability, both through resources on its internal team and in coordination with its industry expert strategic partners.

Once the project has been vetted and qualified, having a professional team to handle every aspect of the project enhances the project’s credibility and helps to increase the investors’ confidence that their money is safe.[3] A smooth, successful EB-5 process includes the following steps:

• The professional team prepares the appropriate documents for the EB-5 package, submits the package to USCIS for approval (if desired), and coordinates with licensed broker-dealers in the United States and agents in foreign countries to market the project to potential investors.
• Potential investors review the offering package, perform their due diligence (with the assistance of qualified professionals) and, if they wish to proceed, investors will complete appropriate investor documentation, enter into subscription and related agreements and wire funds to the appropriate escrow account.
• Immigration counsel prepares the I-526 EB-5 Immigrant Investor Petition and document the source and legitimacy of the investor’s funds,[4] and then submits the petition to USCIS.
• USCIS reviews and hopefully approves the petition and the investor receives a condtional green card; the funds are released from the escrow account and invested in the business that is creating the requisite jobs.
• The business, provided that is is successful in its endeavors, pays off the loan after five years (or after the time period noted in the business plan and offering documents) and the invested capital is liquidated and distributed to shareholders.

There are thousands of competing projects seeking EB-5 investors at both funding levels, that is, $500,000 or $1 million. However, in the current economic environment around the globe, most investors are choosing to invest in projects at the $500,000 level as a means to obtain permanent resident status. Most such investments are made through Regional Center projects, which are generally larger projects such as hotels, mixed-use projects, and assisted living facilities into which the investment is made passively such that the investor is not involved in the operations of the underlying business. Although these investors give up control over the project’s development and management, these projects tend to involved significantly lower risk and a greater likelihood of eventually realizing a return of capital over the long term, as well as annual returns during the life of the investment.

This accounts for the popularity of projects located in Targeted Employment Areas, or “TEAs,” which allow investors to invest at the lower threshold of $500,000 rather than $1 million. These are specifically-designated areas with high unemployment rates or areas within certain rural locations.[5]

Securing funding for an EB-5 project is just one part of this highly complex process. Approved EB-5 investor petitions benefit both the business owners and investors alike. Business owners seeking to raise EB-5 capital should look to e-Council Inc. to manage the EB-5 process from start to finish.  As noted above, we will leverage existing partnerships and strategic relationships with U.S. broker-dealers and professional migration brokers to help locate foreign investors for your project.

In order to get started, please visit www.ecouncilinc.com to set up a FREE INITIAL CONSULTATION to discuss, and one of our business visa experts will contact you to discuss your options and next steps. You can also contact us directly at Info@eCouncilInc.com or 1.866.724.0085.

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] For a summary of the EB-5 procedure, see the USCIS website at https://www.uscis.gov/green-card/green-card-through-job/green-card-through-investment

[2]  See Section 203(b)(5) of the Immigration and Nationality Act (INA) and 8 CFR 204.6

[3] “Working with an experienced EB-5 quarterback has many benefits. It eliminates the need to procure outside services from unrelated sources, significantly streamlining an otherwise overwhelming process. e-Council has established relationships with the appropriate parties critical to the overall success of the EB-5 process—such as economists, marketing experts, licensed EB-5 broker-dealers, migration agents, and immigration and securities attorneys.  Our “strategic partners” are pre-vetted and immediately available to work on new projects. We hold all of our partners accountable to strict deadlines, high quality standards, and consistent results.” http://ecouncilinc.com/e-council-inc-one-stop-eb-5-concierge-shop/

[4] http://ecouncilinc.com/eb-5-process/

[5] “The single determinant of the minimum investment amount necessary to apply for an EB-5 visa is LOCATION. Specifically, whether the EB-5 project is located in a TEA (Targeted Employment Area) or outside of a TEA.” http://ecouncilinc.com/eb-5-minimum-investment-amounts/

The post Using the EB-5 Visa Program to Access Capital for American Businesses appeared first on E-Council Global.

At e-Council, Inc., we have successfully provided guidance to many clients through the entire process with our superior-quality work product and unique EB-5 quarterbacking services. Our clients generally connect with us at the point when they are exploring the idea of raising funds from EB-5 investors. Developers can rest easy in the knowledge that, as experts, we have the combination of knowledge and experience to ensure that all project components are consistent and accurate. However, some clients come to us either before or after filing, having realized that their many service providers were not communicating with each other and therefore inconsistencies happened within the project documents which were likely to result in costly and time-consuming Requests for Evidence (RFE’s). These clients need an experienced team to step in and “clean up” the situation in order for the application to move forward successfully. Thus, e-Council, Inc.’s The EB-5 Clean-Up Crew^TM was born!

Our EB-5 Clean-Up Crew^TM will come in at any point in the process. The most critical piece of our process is a comprehensive review of all documents and a detailed analysis of the project. Our team of professionals will provide business owners, developers, project sponsors and regional center owners with the insight and guidance that they need to coordinate, and keep, their project on track for success. Within that comprehensive review of documents, we will ensure their sufficiency, accuracy, consistency and compliance. The review will include, but not be limited to, the following critical components of most EB-5 offerings:

• Securities Counsel: to create a private placement memorandum (offering document) and supporting documents.
• Immigration Counsel: to file applicable USCIS investor template documentation.
• Market study: used to substantiate the viability of the business, given current conditions and trends and is critical to the overriding credibility factor for EB-5 business plans; includes a competitive analysis.
• Economic Impact Report: comprehensive job projection report prepared by a qualified economist using USCIS-approved input/output models to demonstrate the creation of at least ten qualifying jobs per investor.
• 5-Year financial projections: as calculated by a CPA.
• Matter of Ho-compliant business plans: comprehensive and credible EB-5 business plans that comply with Matter of Ho, the relevant case in the area.

If our Crew finds deficiencies within or between these documents, we will provide recommendations and offer the opportunity to personally make any necessary changes. e-Council, Inc. has the means to resolve and fix many of the issues in-house! And, in addition to our in-house crew members, we can also include other professionals such as securities counsel, immigration counsel, economists, and CPA’s as needed to revise such components as offering documents, economic impact reports, or investor templates. We know what your project needs and we have the connections to access experts in each area in order to facilitate a successful result.

Thus, The EB-5 Clean-Up Crew^TM helps clients to:

• Bridge the gaps between knowledge and results,
• Build the project/business,
• Focus on approval,
• Raise capital more quickly,
• Consider future projects, and, as a result, facilitate the process for stakeholders pursuing the American Dream.

In short, if you’re not an EB-5 expert (or even if you are) and/or if you have any uncertainty that your team, whether EB-5 savvy or not, was properly managed and as there was not a single point-of-contact professional overseeing the process, you should ask yourself a few questions before moving forward:

• Are you sure that everything is accurate and consistent?
• Did you compromise or cut any corners on quality and/or consistency in an effort to save time and/or money?
• Do you have a plan in the event you receive RFE’s? How will you provide the necessary documentation? Who will coordinate the process?

The fact is, those who attempt to pursue EB-5 capital and put together the myriad of pieces that comprise EB-5 projects without the help of a quarterback or similar coordinator often cost themselves a lot in wasted time, stress, and money. e-Council Inc. has developed The EB-5 Clean-Up Crew^TM in response to demand for such coordination and, ultimately, revision.  At the end of the day, you simply can’t beat expert guidance and it’s always worth the investment! No matter where you are in the process, e-Council, Inc.’s The EB-5 Clean-Up Crew^TM can make sure every “t” is crossed and every “i” is dotted. The EB-5 Clean-Up Crew^TM is relentless in our pursuit of quality, consistency and approval, and all of our resources are here for you!

Whether you’re an applicant, a business owner or an investor, it’s never too late to ensure you’re on track for success. Contact us for more information at Info@eCouncilInc.com or 1.866.724.0085 to find out more about The EB-5 Clean-Up Crew^TM.

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.

The post The EB-5 Clean-Up Crew Provides a Smoother Path to EB-5 Approvals appeared first on E-Council Global.

According to a report commissioned and released by the EB-5 Investment Coalition (EB-5 IC) on June 25, 2015, investments made through the EB-5 Program have contributed to the creation of jobs in all 50 states within a broad range of industries. The report also found that the program is “500 percent more efficient at creating jobs” than the 2009 stimulus bill, and “has created tens of thousands of jobs at no cost to taxpayers.”[2]  Additionally, studies have shown that the EB-5 Program brings in roughly several billion additional dollars to the U.S. GDP each fiscal year[3] – $3.8 billion in foreign direct investment in the 2016 fiscal year alone (source:  Invest in the USA – IIUSA). For more information on the benefits of the EB-5 Regional center program, click here: http://ecouncilinc.com/how-the-eb-5-program-has-benefited-the-u-s-economy-part-2/.

Although highly beneficial to the U.S. economy, the EB-5 Regional Center Program remains a pilot program and is not permanent in nature nor set in stone and still requires re-authorization by Congress every 3 years. The Program was last set to expire on September 30, 2015, but has been briefly extended on multiple occasions since that time as Congress has yet to come up with an agreeable bill that meets the demands of both sides of the aisle as well as industry stakeholders.[4] The EB-5 Regional Center Program faces its next sunset date April 28, 2017. There has been much speculation as to the changes that might occur to the Program once Congress finally settles on new legislation, but until one of the many bills before Congress actually passes, it is impossible to predict the future of the EB-5 Regional Center Program with any degree of real certainty.

While the Program is set to expire on April 28^th, there is not significant concern from stakeholders that Congress will discontinue the Program entirely. Most likely, Congress will vote for another short extension – anywhere from a couple of weeks to several months – which would in the interim allow the Program to function in its current state, as Congress and stakeholders continue to hash out the details for what the future of the Program should look like. Should Congress decide to re-authorize the Program instead of extend it briefly, below are some of the many potential changes that the Program might experience:

• A sudden increase in the minimum investment requirements to $800,000 for a TEA and $1.2 million for non-TEAs (potentially even as high as $1 million for a TEA);
• A 5 year renewal period instead of the typical 3;
• A gradual increase in the minimum investment requirements – roughly an additional $50,000 or $100,000 per year, each year until the total reaches $800,000 for a TEA and $1.2 million for a non-TEA;
• More preventative measures to reduce fraud, such as an adjudication model that would assure 90 day adjudications;
• A possible increase in the number of visas allocated to the EB-5 program per year;
• The grandfathering of some I-526 petitions so that they will be unaffected should the minimum investment requirements increase.

With all this in mind, our advice is essentially the same as it has been in our previous blog posts: don’t worry, the EB-5 program isn’t going anywhere BUT get those I-526’s and project offering packages submitted as soon as possible to help protect foreign investors and projects in the Program, and perhaps to grandfather investments at the current $500,000 minimum in Targeted Employment Areas (TEA’s – see http://ecouncilinc.com/targeted-employment-area).

For more information or to set up a free consultation with one of our EB-5 expert team members, contact us by email at Info@eCouncilInc.com or by phone at 1.866.724.0085. 

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] http://ecouncilinc.com/the-uncertain-future-of-the-eb-5-regional-center-pilot-program/

[2] http://eb5coalition.org/press-room/eb-5-report/

[3] http://ecouncilinc.com/how-the-eb-5-program-has-benefited-the-u-s-economy-part-1/

[4] http://ecouncilinc.com/the-uncertain-future-of-the-eb-5-regional-center-pilot-program/

The post April 28th: What to Expect with the Next EB-5 Regional Center Program Sunset Date appeared first on E-Council Global.

E-1 and E-2

While most of the investment and employment immigration options are not specific to any one country, the E visa category is an exception. The E-1 and E-2 visas are the products of trade agreements and treaties between the United States and other countries.[2] They provide a unique way to live, invest and work in the United States that is not available to nationals of non-treaty countries.

E visas are nonimmigrant visas, meaning that they don’t lead directly to permanent resident status. However, by virtue of their unlimited renewability, they can help lay the groundwork for a successful immigrant visa application in the future. Since the treaties and trade agreements that the U.S. has made with individual countries are unique to each country, a national of one country may have only one or the other visa option available.

Fortunately, the United States has longstanding investment and trade agreements in place with Italy, France, the United Kingdom and Spain that encourage investors and entrepreneurs to start businesses in the U.S. In fact, investment and trade treaties that the U.S. has signed with Spain date back to 1903. In 1949, Italy and the U.S. made trade treaties designed to foster cooperation and investment in both countries to help Italy recover from World War II and bring Italian design and ingenuity to America—and vice versa. With one of our closest allies among these four countries, Great Britain, we have the oldest trade agreement, which was enacted in 1815.

The goal of fostering trade, investment and cooperation among treaty countries remains the stalwart rational for the E Visa category. An E visa can be based on either trade (E-1) or investment (E-2) in a business in the United States. Nationals of Italy, Spain, France and the U.K. have both the E-1 and E-2 visa options available to them. [3]

As noted, not every country has access to both E options and some countries have no treaty in place with the U.S. government at all. The fact that both categories are available to nationals of Italy, Spain, France and the U.K. makes investment and trade easier to accomplish and permanent residency within closer reach.

The E-2 is a more commonly used visa category than the E-1 and one of the fastest ways to enter the U.S. and start a business. Although it will not lead directly to a green card, it allows the investor to stay in the U.S. for the life of the E-2 business, because it is renewable indefinitely. In addition, spouses can work and minor (under 21) children can attend school. Finally, under this visa category, the business investor is also an employee and manager.

Unlike the EB-5 visa category, discussed below, there is no set amount of money that must be invested. The investment amount will vary by what is standard for the type of business and industry in the specific location. For example, investing $75,000 – $200,000 in a restaurant franchise may be sufficient to qualify for an E-2 visa. As the business investment grows, the possibility of applying for permanent residency becomes within reach through the EB-5 visa process.  For a detailed discussion comparing the E-2 and EB-5 visas, as well as using the E-2 as a springboard to transition to an EB-5, see, http://ecouncilinc.com/immigration-options-foreign-investors-side-side-comparison-e-2-eb-5/.

EB-5

The EB-5 Visa category offers two investment options through which a foreign national can obtain permanent residency and, eventually, citizenship in the US. One is the Regional Center Investment option and the other is the Direct Investment option. The main differences between the two options are the degree of involvement in the business and the effect of the investment on jobs for U.S. workers.

As of the date of posting, both options require a minimum investment of $1,000,000, unless the investment property is located in a Targeted Employment Area (TEA), in which case the minimum investment drops to $500,000 (see http://ecouncilinc.com/eb-5-minimum-investment-amounts/ for further discussion). A Targeted Employment Area is defined as either an urban area with an unemployment rate of 150% of the national average or higher, or a rural area.[4] Only the location of the investment, that is, whether the subject investment is within a TEA or not, determines the minimum investment threshold.[5]

EB-5 Regional Center Investment

• Requires a minimum investment of $1,000,000/$500,000 depending on location, into a fund that invests in, or loans funds to, qualifying projects
• Allows only a passive investment strategy because investment is managed by another company
• Creates ten new jobs for US workers directly or indirectly

EB-5 Direct Investment

• Requires a minimum investment of $1,000,000/$500,000 depending on location;
• Allows direct involvement in managing the investment
• Creates ten jobs for US workers directly or through subsidiary companies

L-1

The L-1 visa category allows an employee to apply for a nonimmigrant transferee visa if the E.U. company is affiliated with a company in the U.S. and the employee is being transferred to the U.S. location. However, the employee must be a manager, executive or an employee with specialized knowledge who has worked already for the E.U. company for one of the last three years and the job in the U.S. will be in a managerial, executive or specialized knowledge position.

This is an extremely viable path to obtaining an employment visafor E.U. nationals who work for E.U.-based companies with affiliated branches or divisions in the U.S. Hundreds of companies from Italy, France the UK and Spain, have branch offices in the United States and regularly transfer managers, executives and specialized knowledge employees under this visa category.

Managers and executives who enter the U.S. on an L-1 visa are, in most cases, eligible to apply for permanent residency under the EB-1-3 category, discussed below.

EB-1  

There are three paths to permanent resident status under the EB-1 visa category: Persons of extraordinary ability in the arts, sciences, education, business or athletics; outstanding professors and researchers; and, multinational executives and managers.

Someone who has “extraordinary ability” in business, the arts, science or education will not need to rely on any employment or investment to obtain a green card. An individual at the very top of his or her field is allowed to self-petition for a green card. The USCIS requirements to prove “extraordinary ability” are quite particular and stringent. While the law does provide for a variety of ways to prove eligibility for an EB-1-1 visa, the options are nevertheless strict.[6]

Nationals from Italy, Spain, the U.K. and France who qualify for this visa category, the EB-1-1, can file their own petitions to sponsor themselves. Anyone with such extraordinary qualifications should explore whether his or her credentials meet the criteria for this visa. While very few people meet the eligibility criteria for this visa category, those who do are rewarded with a green card for their nationally or internationally recognized professional accomplishments. Outstanding professors and researchers must meet similar high evidentiary standards and be seeking entry into the U.S. to continue in the same academic field with a university or conduct research at a university or with a private employer. They are eligible under the second option, EB-1-2.

Multinational executives and managers who previously entered in L-1 status to work for a U.S. affiliated company are generally eligible to apply for a green card under the EB-1-3 category. There are separate, specific evidentiary requirements for managers and for executives. However, both must be functioning at a high level within the organization with a large degree of discretion over management decisions and staff. Working with immigration counsel will help make the L-1 to EB-1 application process go smoothly.

Given the long history of friendship, trade and investment between the United States and France, Italy, Spain and the U.K., nationals of these countries have founded successful and growing businesses for generations. These entrepreneurs, investors and foreign nationals with extraordinary ability are always welcome in the United States.

To inquire about our wide range of immigrant and non-immigrant visa concierge services, please contact us by email at info@ecouncilinc.com, or toll-free at 1-866-724-0085.

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.selectusa.gov/welcome. “With an annual GDP of $18 trillion and population of over 325 million, the United States is the world’s most attractive consumer market, offering unmatched diversity, a thriving culture of innovation, and the most productive workforce.”

[2] https://travel.state.gov/content/visas/en/fees/treaty.html

[3] The E-1 is based on friendship, commerce and navigation to carry on substantial international trade between the U.S. and the national of the treaty country.

The E-2 is based on a Bilateral Investment Treaty to develop and direct the business operations of a bona fide current investment or one in which the investor is actively seeking to invest substantial capital.

[4] https://www.uscis.gov/working-united-states/permanent-workers/employment-based-immigration-fifth-preference-eb-5/about-eb-5-visa-classification

[5] It is a common misunderstanding that investing in a Regional Center project versus making a Direct Investment determines the amount of the investment. This article discusses that the location of the investment is the only determinant of the minimum investment amount. http://ecouncilinc.com/eb-5-minimum-investment-amounts/#_ftnref1

[6] https://www.uscis.gov/green-card/green-card-through-job/green-card-through-self-petition

The post Best Business Immigration Options for Citizens of European Nations Focus: Italy, France, UK and Spain appeared first on E-Council Global.

This article will provide a side-by-side comparison of these two visa options and may serve as a guide for foreign investors in terms of planning for the future of both their business and their family.

E-2 Visa: What You Need to Know

 The E-2 investor visa is a nonimmigrant visa, which allows an investor to enter the United States in order to establish and oversee an enterprise of their choice within the United States.¹ The E-2 visa emerged from a bilateral investment treaty program  through which the United States has entered into treaties with over 70 other countries around the world.  Congress has implemented legislation governing these treaties as part of the Immigration and Nationality Act (INA).² According to the INA, citizens of E-2 treaty countries are permitted to enter the United States, accompanied by their spouses and minor children (i.e., children under the age of 21), for the sole purpose of investing in and managing a business enterprise within the United States. Visa duration depends upon treaty country reciprocity. Treaty investors may apply for an unlimited number of extensions, provided the business remains operational. Extensions of status within the U.S. are granted in increments of up to two (2) years each.

The list of countries currently maintaining a bilateral investment treaty with the United States can be found here: US Department of State’s Treaty Countries.

Some benefits of the E-2 visa³ include:

• The US Department of State has not established a minimum or maximum investment amount required to qualify for an E-2 visa. The Foreign Affairs Manual (FAM) only states that the investor must make a substantial investment into a United States business. In other words, foreign investors may be able to enter the United States and start a business provided that the investment sufficiently capitalizes the venture’s start-up and first year operating expenses.
• The E-2 allows for the investor’s spouse and minor children to be issued E-2 visas and permits the investor’s spouse to apply for employment authorization as an E-2 dependent.
• Minor children of an E-2 investor, while not permitted to work in the United States, may attend the educational institution of their choice. Some colleges have even elected to extend in-state tuition benefits to nonimmigrant children holding E-2 visas.
• While the E-2 visa validity is limited by treaty country reciprocity, , an investor may renew their visa indefinitely as long as the business continues operations.

There are some drawbacks to the E-2, which include:

•  It is not uncommon for renewal applications to be denied should the enterprise be show signs of struggling at the time of renewal. Moreover, should their business fail or be sold to another investor, the E-2 investor must to leave the country, even if their E-2 visa has not expired.
• Investors under an E-2 visa may only work for the E-2 enterprise.
• The E-2 visa does not provide a direct route to permanent residency within the United States.

EB-5 Visa: What You Need to Know

The EB-5 investor visa provides foreign nationals with the opportunity to obtain a United States green card by investing a minimum of $1,000,000 ($500,000 in a Targeted Employment Area) into a new United States enterprise that will create at least ten (10) full-time positions for qualified employees.⁴

Some benefits of the EB-5 visa⁵ include:

• The foreign investor is permitted to reside in the state of their choice and is not required to oversee the investment business. In other words, foreign investors who obtain lawful permanent residency through the EB-5 program may be employed in any position with any employer. They may decide to own and operate their investment business or they may choose to retire.
• EB-5 investors, their spouses, and any minor children are granted conditional permanent residence within the United States for a two (2) year period. Prior to the end of this preliminary conditional period, EB-5 investors and their derivative family members must petition for removal of these conditions on their permanent residence.
• As lawful permanent residents, minor children of EB-5 investors may attend the school of their choice within United States, while also qualifying for scholarships and in-state tuition as a lawful permanent resident. They are also permitted to work within the United States.

Some disadvantages of the EB-5 visa include:

• The EB-5 visa has a very high investment threshold, lacking the investment flexibility of the E-2 visa.
• As lawful permanent residents, EB-5 investors must maintain their residency by being physically present in the U.S. for at least 180 days out of the year or applying for a reentry permit for extended absences.
• Foreign investors who reside in the United States under an EB-5 visa are required to declare their entire worldwide assets and income for United States tax purposes.

Using the E-2 as a Pathway to the EB-5

 In some instances, a foreign investor may wish to establish their business in the United States as expediently as possible, but would also like to retain the option of pursuing permanent residency within the United States. This can be done by utilizing the E-2 investment visa as a transition to permanent residency through the EB-5 category. For investors wishing to use this strategy, it is recommended that they speak with an experienced immigration attorney prior to beginning the E-2 process.

To inquire about our wide range of EB-5 and E-2 turnkey concierge services, please contact us by email at info@ecouncilinc.com, or toll-free at 1-866-724-0085.

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.

References

¹ United States Citizenship and Immigration Services. (2014). E-2 Treaty Investors. Available at: https://www.uscis.gov/working-united-states/temporary-workers/e-2-treaty-investors

² United States Department of State. Bureau of Consular Affairs. United States Visas: Treaty Countries. Available at: https://travel.state.gov/content/visas/en/fees/treaty.html

³ United States Citizenship and Immigration Services. (2014). Understanding E-2 Requirements. Available at: https://www.uscis.gov/eir/visa-guide/e-2-treaty-investor/understanding-e-2-requirements

⁴ United States Citizenship and Immigration Services. (2017). Employment-Based Immigration: Fifth Preference EB-5. Available at: https://www.uscis.gov/working-united-states/permanent-workers/employment-based-immigration-fifth-preference-eb-5/about-eb-5-visa-classification

⁵ United States Citizenship and Immigrations Services. (2017). Employment-Based Immigration: Fifth Preference EB-5. EB-5 Immigrant Investor Process. Available at: https://www.uscis.gov/working-united-states/permanent-workers/employment-based-immigration-fifth-preference-eb-5/eb-5-immigrant-investor-process

The post Immigration Options for Foreign Investors: A Side by Side Comparison of the E-2 and the EB-5 appeared first on E-Council Global.