Article for the British Floridian from a leading EB-5 Immigration Attorney.

See Latest EB5 Article Below

For years, the E-2 investor visa represented a realistic option to live and work in the U.S.A. for many years. An active, profitable business that employed several U.S. workers was basically sure to be approved for E-2 registration.

While it is still possible to obtain an E-2 investor visa at the U.S. consulate, the adjudication criteria for first-time visa applications as well as for renewals have drastically changed (even though there was no change in the E-2 regulations).

While two to three years ago a $100,000 investment, or even less, in an active U.S. business that employed 2-3 workers easily passed the "marginality" test, this is no longer so, not even if the business is quite profitable. Today, the investment should be in the $200,000+ range, the business should employ at least 5 workers, and the applicant must be able to prove "non-immigrant intent". (While the E-2 visa regulations do not require that investors maintain a residence in the home country, the consulate may consider the sale of your home in a proof of "immigrant intent"). Moreover, any indication that the investor is retired, looking to retire, or will not play an active role in the daily management of the U.S. business may well result in denial.

Repeat visa renewals face ever increasing scrutiny, not only because the consulate expects the investor to train a U.S. replacement for him-/herself, but also because the investor's wish to continue to direct the U.S. business may be misinterpreted as "immigrant intent". For many immigrant investors, the E-2 visa route remains the most accessible opportunity to live and work in the U.S., however, applicants should be aware of and knowledgeable about the possibilities and limitations of this visa.

For investors who have the financial means to consider an investment of $500,000 in the U.S., and who wish to immigrate permanently, the EB-5 "regional center" investor green card option is the more ideal solution. Citizenship and Immigration Services (CIS) has approved a number of "regional centers", located throughout the U.S in targeted development areas with higher than average unemployment, to qualify foreign investors for permanent residence, if they invest $500,000 through the Limited Partnerships that administer the various programs.

Some of these "regional centers" are exceedingly more active and successful than others, and have a track record of 100% green card approval rate for their investors. Investors who consider the investor green card option need to know the track record of the various programs, and who has successfully prepared and submitted EB-5 petitions with CIS on behalf of foreign clients.

The EB-5 investor green card option is rapidly becoming very popular, not only because the E-2 investor visa option has become so difficult, but because the person is not burdened with the daily management of the business and due to the very favorable exchange rate of the US dollar makes it easier to make such an investment.

The major requirement on behalf of the investor is that he/she can clearly document that the investment funds were obtained legally, for instance from savings from a working career, sale of property, inheritance, or by any other legal means. After the investor, upon advice of an immigration attorney, has opted for an investment center, he/she should obtain a due diligence report about the "regional center" from a competent, independent accountant.

CIS processing of the initial petition takes about 3-5 months. If the petitioner is in the U.S. with a non-immigrant visa, the investor and his/her family may apply for their adjustment of status in the U.S. after the initial petition is approved. If the petitioner is outside the U.S., then he or she must apply for an immigrant visa through consular processing in the investor's home country.

The initial green card will be issued on a two-year, conditional basis. At the end of the two-year conditional period, another petition will have to be submitted to CIS to remove the condition from the permanent residence. In order to qualify for the permanent green card, both the "regional center" and the investor need to continue to qualify. The funds must still be invested, and the regional center must accomplish the required job creation.

The EB-5 "regional center" immigrant investor green card option gives investors peace of mind in the sense that they know that their investment is made in a reliable, government approved program, and that obtaining permanent residence for the immigrant investors is the stated goal of said program. Moreover, after obtaining the conditional and later the permanent green card, the immigrant investors have the freedom to pursue any job or activity of their choice in the U.S., without being constantly obliged to worry about visa renewal issues, or about what options to pursue when their foreign-born children reach the age of 21. Also, under the current property tax system, permanent residents (and conditional permanent residents) qualify for homestead exemption on their property taxes, while E-2 and other long-term visa holders do not qualify.

For foreign investors who wish to spend at least 6 months per year in the U.S. without visa constraints, and who can afford to invest $500,000 into a "regional center" without a guarantee of specific returns on their investment during that time, the EB-5 "regional center" option is an ideal, relatively uncomplicated way to qualify for the coveted green card that confers upon them the right to permanent residence in the U.S., and eventually, if they so wish, the right to apply for U.S. citizenship.

Considering immigrating to the USA? Why it may be now or never

To use the age old adage there is a right time and a wrong time to do things and for those planning to grasp the opportunity to retire or live permanently in America via the EB5 visa now may be the time, whilst next year may be too late or considerably more expensive.

It is not down to the fact that those planning such a move with older children i.e. those approaching 21 who need to act decisively before the children age out, as this process is referred to in the words of the US immigration service!

No, there are other equally pressing reasons why those planning to relocate in the next few years may need to act sooner rather than later.

For a start there are practical issues associated with finance and timing which are so often identified once it is too late.

There are many leading economists who take the view that it’s only a matter of time before history repeats itself with the dollar bouncing back against other currencies meaning you would again have to pay considerably more to make the move.

Many immigrants will want or need to sell their home before retiring or making a permanent move to the USA. Currently the US housing market is on its knees and the country seems poised to go into recession, so much so that it is possible to buy property at 20% plus off prices; which seem a steal particularly against UK and European prices. Prices are forecast to fall by a further 10% in Florida which is further into the downward cycle than UK where recent economic reports forecast a fall of 20% for some British house prices.

However it should be remembered how suddenly this downturn occurred in The USA. 2005 was a record year for house sales before the market fell of the cliff. Since then many house builders have stopped building and inevitably what goes down goes up – so in two years time you could pay far more for your piece of America. (Bear in mind visa applications are likely to take at least a year) This is particularly likely if you are eying prime waterfront property which was previously absolutely unaffordable for many but presently unbelievable deals are being agreed.

Then of course there are price trends to consider with your own property in the UK and Europe where experienced commentators including the international money fund are forecasting greater falls than America has experienced.

Add to this currency scenario the impact of the various big ticket items you will need to buy when relocating to the USA from car to house furnishing and the present favorable currency scenario again presently works in your favor.

Some emigrants who relocated to the USA between 1999 and 2002 have found that even if they wanted to return to the UK or Europe it’s no longer possible, as they moved at the very time the US dollar was at a peak and their own housing markets were a lot lower than they are now. However for those retiring now this should not be an issue.

Last but not least many Europeans have been waiting to see what happened to previous investors as the program was relatively untested. Now that many investors on specific programs have had conditions removed from their green cards and one program will shortly be the first to refund investors their $500,000 investment plus interest it seems likely the gates will open.

Finally when considering EB5 regional centre programs it is important to be aware of the pros and cons of the seventeen potential options. We have an ongoing series of visits and monitoring the progress or otherwise in certain cases of the programs and can highlight the key hidden positives and negatives that should be critical to your choice but are so often hidden in marketing spiel!

Having made a number of repeat visits to various regional centers we are very aware how important it is to look beyond the marketing information to the reality of how the programs actually work and their track record.

The pros and cons of the centers can vary enormously depending upon your priorities - most potential EB5 emigrants do not have the time to face visit all 17 centers for sufficient time, and thus tend to rely on marketing material

Just a few of the Questions we consider are:-

• Why some centers seem to place emphasis on visas aspects and others on investment and the implications of this.
• Why we felt it was critical when visiting centers to look beyond the actual meeting with staff and what we subsequently discovered.
• Why visa applicants need be aware of the implications of an RFE and what can lie behind this
• Why we needed to look beyond the marketing spiel regarding the regional centre location
• What are the implications of various nationalities seeming to opt for different centers
• What are the ratio of successful applications
• What are the ratio of applications whose conditions are successfully removed after two years
• Which centers are close to returning investors funds?
• What important points people are not being told about regarding certain regional centre programs and why you need to know.

For further EB5 program details, launches and the pros and cons – please contact us for further details.