We begin the EB5 immigration process with a free consultation, by phone or at our office. During that consultation we will discuss the general aspects of the regional Center Program as well as the basic requirements to qualify as an investor. Once you retain us by signing an agreement for representation and paying the retainer, we will forward an extensive checklist to gather basic information on your particular circumstances and the legality of the investment funds.
The investor must invest $500,000 in a USCIS-designated regional center program before we can file the I-526 Immigrant Petition by Alien Entrepreneur. It is crucial for obtaining approval of the initial I-526 petition that the invested funds were legally earned. This evidence should include copies of at least 5 years of tax returns, proof of the employment or business activity from which it was earned, documentation from any recent transactions from which the money was derived, such as the sale of land or from an equity line on a property.
Alternatively, if you received the funds as a gift, then we need to present information on how the person, from whom you received the gift, earned the money. We file the I-526 petition, and it takes approximately 7-9 months for the I-526 petition to be decided. The processing time can vary from one regional center to another and from one investor to another. When the I-526 petition is approved, if you are already living in the U.S. in non-immigrant visa status, you may adjust your status to conditional permanent residence in the U.S.
If you are not currently living in the U.S. in non-immigrant visa status, then you must complete the immigrant visa process through the U.S. consulate, which typically takes 4-6 months at most consulates. Adjustment of status typically takes less than 3 months. Consular immigrant visa processing is also available to those present in the U.S. with non-immigrant visa status, and would typically come into play when less time is left on the current visa status than the usual processing time for the I-526 petition, and the extension of the visa status is looking uncertain.
Once you successfully complete either of these two processes, you will have a two-year conditional permanent residence. During the final 90 days of that two-year period, you must file the I-829 petition to remove the conditions from your permanent residence. As part of that process, we must show that you have maintained your investment, and we have to present proof to USCIS from the regional center that it has brought about the creation of at least 10 jobs per immigrant investor, as presented in the I-526 petition. The number of jobs created as calculated with the help of an economist’s model, would consist of a combination of direct, indirect, and induced jobs. This process currently takes about 6-9 months.
One other point to bear in mind is that the Immigrant Investor Pilot Program, as a pilot program, has functioned on a test basis since its creation, and so Congress has needed to renew the program every few years, typically every 3 to 5 years. Most recently, the program was set to expire on September 30, 2008. After several short-term extensions, on October 28, 2009, the program was extended for three years to September 30, 2012. On the positive side, in the past, Congress has used the renewal process to reform the program in ways that have improved its functionality. On the negative side, Congress typically procrastinates until the last minute with extending the program, which creates uncertainty and nervousness about whether there will be a temporary lapse in, or even a permanent demise of, the program. Nevertheless, no matter how dysfunctional the program was at any point when it was up for renewal, Congress has not let the IIPP lapse.
In the past, Congress has renewed the IIPP at times when the program was, in effect, not functioning and existed in law but not in practice. Now, the program is actually fulfilling its function by bringing billions of dollars of foreign capital into the U.S. and bringing about the creation of hundreds of thousands of new jobs for U.S. workers, particularly at a time when the economy is down, unemployment is high, and banks are refusing to loan sufficient capital to carry out large-scale construction and business expansion projects. Capital from EB-5 investors is filling this large gap, and often on terms more favorable to U.S. businesses than bank loans would be. The IIPP is, in effect, an economic stimulus program that costs the U.S. taxpayer practically nothing.
Another factor in the renewal of the IIPP is that, since the last renewal of the program, the number of regional centers has ballooned from 18 to over 200. The regional centers were previously located in less than 18 states, but they are now located in 39 states, plus the District of Columbia and Guam. That means that that many more Members of Congress have one or more regional centers in their district. For those who do not yet have a regional center in their district, there is the potential for an existing regional center to expand into their district or for a new regional center to be created in their district in the future.
Certainly, no one has a crystal ball to predict the ultimate fate of the IIPP, but the reasons that Members of Congress have for renewing or making the program permanent are greater than they have ever been in the past. The program is working, albeit not as quickly and efficiently as it could or should, to bring in foreign capital and create jobs for U.S. workers at a time when the U.S.’s economic condition is weak. Moreover, the economic benefits of the program are now being distributed more evenly across the U.S. to the districts of more Members of Congress who will be voting on whether to extend the program or make it permanent. The reasons for renewing or making the program permanent are greater in number than those against, and the current economic conditions in the U.S. make the reasons in favor even more compelling, especially when the opinion polls of U.S. voters indicate that, in upcoming elections in 2012, they plan to hold politicians accountable for what they have done, or have not done, to foster job creation.
What would be the effect of a lapse in the IIPP? In order for the sunset (expiration) of the program not to affect the EB-5 investor’s case, both the I-526 petition and the I-485 adjustment of status or the application for an immigrant visa through consular processing must be approved prior to the sunset of the program. If the investor’s I-485 adjustment of status or application for an immigrant visa has been approved prior to the sunset, then the investor will be able to proceed to live in the U.S. in conditional permanent resident status and will be eligible to apply to remove the conditions from such status regardless of whether the program has been extended.
Just a reminder:
My name is Anthony Olson, and I am a lawyer who operates an immigration law practice with offices in Sarasota and Fort Myers, Florida. The following information includes my analysis of certain aspects of the Regional Center program that you should consider in seeking to optimize your chances of success in the United States immigration process. Also included is a discussion detailing the process of applying for permanent residence in the U.S. through the EB-5 Immigrant Investor Pilot Program.
Please understand that any information contained herein do not constitute legal advice, nor investment advice, nor a due diligence report of any kind, and that your receipt of this information does not by itself create an attorney-client relationship.
If you are considering the EB-5 visa as your best method to gain permanent residence in the USA you may need to act in the next three/four months to make certain of obtaining the visa.
Currently applications are taking approximately six months for your initial petition to be processed by USCIS and a further three to four months for either an adjustment of status or consular processing. If you want to be sure you have enough time to go through the process with a margin of safety you probably need to apply before the end of December 2011.
The program has faced closure before but Congress has granted typically last minute extensions. However, this time closure is due in the period of a run up to The Presidential election, this adds some uncertainty to the process.
There has been lots of talk that premium processing would be introduced for the EB-5 visa program which could reduce the processing time down from the current six months to a few weeks. While this is currently under continued discussion it could take many months to implement. Meaning it MAY NOT be available until late into 2012. This would leave many applicants exposed to perhaps not getting their petition adjudicated prior to the expiry of the program.
It is very important for you to carry out full due diligence before committing to a particular Regional Center program. A number of Regional Centers have received Requests for further Evidence (RFE), some have had refusals at the initial (I-526) stage and others, more alarmingly, have had refusals at the removal of conditions (I-829) stage.
If you would like to discuss the implications of this program, or would like impartial information about the various Regional Center programs, our network of consultants and attorney’s can provide a free in-depth personal consultation to you. We currently have over 250 clients and a 100% record success record.
Many families wishing to live in the USA consider the relative advantages and disadvantages of the E2 and EB-5 visas.
In some cases the choice comes down to the funds they have available or wish to utilize. The EB-5 requires an investment of $500,000 in a program operated by a Regional Center authorized by the U.S. government. The E2 visa is likely to cost much less, indeed many families have paid in the region of $150,000 to $200,000 to purchase a suitable business qualifying for the E2.
However, a key implication that is not always realized is that the E2 visa does not provide the family with permanent residence. A senior American Consular official is reported as saying –
‘I would also like to point out that a non immigrant (E2) visa is not a good option for someone who intends to reside permanently in the United States. If the investor retires or sells their investment, his or her visa status lapses and he or she must leave the US. Only single dependent children under 21 are eligible for visas to accompany their investor parent, and when these children turn 21 they lose their status as a dependent and their visa. The more secure option for those that have the necessary capital is the permanent resident [green card EB5] investor visa. In this case the required investment is one million dollars, or under certain circumstances $500,000.’John Caulfield, Consul General, US Embassy London.
There have been a number of well reported cases of families and/or their children having to leave the USA due to the E2 visa failing to be renewed. This can still happen even after the family may have lived in America for many years when perhaps their children know no other way of life.
Indeed the situation regarding the limitations has become so notorious that a petition signed by many E2 visa holders, desperate to remain in America, has been drawn up for presentation to Congress.
The New York Times recently reported an unfortunately typical scenario where a family who had been operating a business on an E2 visa for nine years had the renewal of their E2 visa refused. This left them no option other than to return back to the country that had left nearly a decade earlier.
Of course, many do not have the $500,000 required to make the investment for the EB-5 visa. However, for those that do, the fact that it provides permanent residence status is an enormous benefit in many ways.
Full permanent residency rights apply.
In certain states you pay lower property tax costs and your children pay lower tuition rates at many Colleges and Universities.
Children do not have to leave the USA once they turn 21.
Depending upon your circumstances the EB-5 could be seen as an inexpensive option. The one visa covers the entire family, applicant, spouse and all their children under 21. Select the right regional center and not only should you get your $500,000 back at a point in the not too distant future, you may also get a return on your investment. The same cannot be said with confidence about the E2 visa, particularly in the current economic climate.
There is a lot of incorrect information circulating on the Internet about how the EB-5 program works and the current legal status of the EB-5 Immigrant Investor Pilot Program. Some sources that should know better have published articles that are blatantly false and potentially misleading.
One example is an online article, which states the following: “Since you now have an EB-5 visa, your immigration attorney can file to remove the conditions on your temporary visa, and you can become a citizen about two months after you enter the country.” The investor cannotapply to remove the conditions from the conditional permanent residence until 21 months have passed since entering the U.S. with the immigrant visa, or since having his application for adjustment of status approved. The petition to remove the conditions (I-829) typically takes approximately 6 months to be approved. The EB-5 investor, spouse, and any sons or daughters 18 or above must have permanent residence for 5 years before being eligible to apply for naturalization, i.e., citizenship. The two-year period of conditional permanent residence counts toward the above-mentioned five-year period of permanent residence needed in order to qualify for citizenship.
In another article from the same author, there was an incorrect statement that in July 2009, the EB-5 Immigrant Investor Pilot Program was made permanent by a vote in Congress. The article stated the following: “Fortunately, in July of 2009, the program was voted to be made permanent. This effectively ended many immigrant’s worries that it would end on September 30. Now immigrants are free to use the program, whether now or in a few years.” The U.S. Senate approved a bill that would make the EB-5 Immigrant Investor Pilot Program permanent; however, the companion bill in the U.S. House of Representatives did not provide for permanent authorization of the program. If a bill is not approved by both houses of Congress and signed into law by the President, that bill does not become a law. [see latest news on this blog] The article’s author says that the “program was voted to be made permanent,” which leaves some room for interpretation, however, that statement is clearly wrong when read in conjunction with the sentence that follows, in which the author says that immigrants are free to use the program “now or in a few years.” At that time, the expiration of the program continued to be September 30, 2009. There was a good likelihood that Congress would eventually pass a long-term extension of the program, and would temporarily extend the program in the meantime while deliberating on a long-term extension; however, no such extension had been passed into law, and so this information is inaccurate and its tricky wording is misleading.
At this point in time, the conference committee from the Senate and the House of Representatives, which has been working to reconcile their respective versions of the FY 2010 Department of Homeland Security appropriations bill, H.R. 2892 in the House of Representatives and S. 1298 in the Senate, reached consensus on extending the EB-5 Pilot Program for 3 years. However, the two companion bills must still be approved in their respective houses of Congress and be signed into law by the president before this three-year extension becomes law. [The House have now agreed on this and we are awaiting the Senate decision]
It is important to double-check the information that you find on the Internet. Some website authors are more careful than others to check their facts before publishing information on the Internet. Whicheb5.com and its associated professionals strive to present the most accurate and current information possible. If you read anything about the EB-5 program and want us to fact-check for you please contact us at info@WhichEB5.com
The Senate have cleared the bill extending the EB-5 program for a one month temporary extension. President Obama is expected to sign the just cleared bill tonight. Word in Washington is that Congress could take up longer term extension within the next two days.
Stay tuned to the Which EB5 Blog for the latest updates and news on all EB-5 Visa matters.
We wanted to inform you that Congress passed a short term Continuing Resolution that extends the EB-5 Program until midnight on Wednesday March 11, 2009. Congress is expected to shortly thereafter extend it to a longer term. We will inform you of further updates as they occur.
This update brought to you by Andrew Bartlett & Stephen Parnell
WhichEB5.com, its owners and associates, do not function as attorneys or legal counsel and do not attempt to interpret immigration law and do not provide or offer legal advice or legal services or investment advice. Anyone considering an Investment based Visa should seek independent professional advice. The information on this site is intended to be general on the subject of the EB5 investment visa green card program and should not be relied upon for any specific situation. Any reference to designated regional centers on this website is posted as reference material only. For legal advice, please contact one of our attorneys. Prior results do not guarantee a similar outcome. Results depend upon a variety of factors unique to each person. Which EB5 is a service of Ireeco LLC 1515 N.Federal Hwy. Suite 300 Boca Raton Florida 33432 USA Telephone: +1-561-771-1330.
