Now a day’s people want to migrate to a first world country for various reasons such as better lifestyle, better job opportunity and the list goes on. People are trying hard to get a green card even though working in countries like USA for several years but facing the hard ball game each time. But like always USA came up with a brilliant idea of EB 5 program where anyone even without any skillset required can invest on a business or in some property and can get the green card if certain terms and procedures are followed. A single investment from a family is good enough to earn a Green card for all the family members. Don’t worry if you are short of your money of your own but have some ancestral property with you, those also can be considered if you have a valid document for that source of fund. Want to know more about the EB 5 program? Let’s dig the hole part by part.
What is EB 5?
EB5 Also known as Immigrant investor program which is administrated by the united states Citizenship and immigration services (USCIS). This was created in 1990 by The US Congress to motivate the economy by job creation along with foreign capital investment. The new legislation makes 10000 Green cards of permanent residency available nationwide each year for qualified immigrant investors
What are the criteria to fulfil the requirement of EB5 program?
To qualify under the EB 5 investor VISA US green card there are three basic requirements.
- Investment in a new business
- Investment of at least $1 million into the business
- Creation of employment for at least 10 full time US workers and the position should remain for a minimum of two years and detail record must be kept as a proof to show that the job creation has occurred.
How an applicant can invest in the EB-5 program?
There are two ways how one applicant can invest on US EB5 green card visa.
- Direct investment — Investment into a completely new business which should create at least ten fulltime jobs. Any franchise, Restaurant, It services, retail product or even a car wash or truck company is considered as a direct investment.
- Regional center Investment- This type of investment may consist of various forms of capital, such as cash (includes gift or loan), equipment, property. $1 Million is generally the minimum amount but $500000 is acceptable if the business is situated in a targeted area i.e. one area that has experienced unemployment of at least 50% of the national average rate or a rural area.
Why it is popular with Project developers and Investors?
To obtain a green card most of the investors are willing to accept a lower financial rate of return on their investment in exchange. So, project Developers agree to work with a lower cost of EB-5 capital and lastly as this investment creates a full-time job it is always helpful for the public interest. So, it is a three way win win situation.
What all set of documents do you need for applying an EB-5 project?
There are usually five different set of documents.
- EB-5 matter of compliant business plan: -This explains exactly how the proposed investment meets the criteria of the EB-5 project and demonstrates how EB-5 investments will remain at risk and create at least ten jobs per investor
- Economic impact or job creation Report: – This report shows revenue creation and capital Expenditure
- Private placement memorandum or PPM: – :- It is a disclosure document with client which shows EB-5 Transaction creation, Terms of investment, Risks associated with the investment, Management and control of EB-5 investment funds
- Loan agreement or stock purchase agreement
- New commercial enterprise entity and manager documentation.
