Can you take loan for EB-5?
One of the ways in which you can fund your EB-5 investment is through a loan. This loan can come from a family member or friend, a banking institution, in the form of an unsecured loan, or any other legitimate source.
EB-5 projects are typically financed through Regional Centers, which can accept the investment from the green card-seeking investor. The U.S. government sets aside 10K green cards each year for foreign investors participating through designated Regional Centers.
INTEREST RATE:
For senior debt, EB-5 rates are typically 3%-5%. For subordinate debt the rates are 5%-9%. Typically the loans carry monthly payments of interest only.
Cost. The total cost for an EB-5 investor visa is between $4020 and $4,900, depending on where the applicant is filing from. To begin with, the applicant will need to pay a fee of $11,160 to file Form I-526 (officially called “Immigrant Petition by Alien Entrepreneur”).
Do EB-5 investors get their money back? EB-5 investors may get the full or part of their invested money back when their immigration and investment cycles are completed. Many regional centers would include the terms and conditions of this exit procedures in the investment agreement or other documents.
The standard capital investment requirement for an EB-5 investor is $1 million. in a Targeted Employment Area (TEA) which is either in a high unemployment area, (calculated as an area with an unemployment rate that is at least 150% of the national average), or a Rural Area (RA) is $500,000.
EB-5 investment into a New Commercial Entity (NCE) is a form of equity while investing in a Job Creating Entity (JCE) can be structured as either debt or equity. “An equity investment offers an ownership interest in the legal entity that is responsible for creating the EB-5 jobs, the JCE,” says Farah S.
Increased minimum investments
The standard minimum investment amount has increased to $1.8 million (from $1 million) to account for inflation. The minimum investment in a TEA has increased to $900,000 (from $500,000) to account for inflation.
After investing, you will receive a receipt from the regional center documenting your investment in the EB-5 project. Once that is done, your attorney will file an application for a conditional green card. Approval time is around 18-24 months for form I-526E.
The process involves selecting a qualifying project, investing the required amount, and filing an EB-5 petition (I-526). Upon approval, an investor can file for adjustment of status to obtain a conditional green card, which becomes permanent after conditions are removed (I-829 filing).
How much does a lawyer charge for EB-5 visa?
Immigration attorney fees for filing the EB-5 petition can vary from $20,000 to $50,000, depending on the needs of the individual client and their families.
Purchasing a home in the U.S. is considered passive investment and would not qualify for the EB-5. There are proposals in the immigration reform legislation, but currently there is no visa that results in a green card based on the purchase of a home.
USCIS expressly provides that EB-5 investments must boost job creation in the United States. If an EB-5 project fails to meet the job creation requirements, it will likely result in exponential losses in capital and a green card denial.
- Requires lots of money. ...
- Involves investment risk and other challenges. ...
- Is not a direct path to permanent resident status. ...
- Involves long waits for investors born in mainland China due to visa quotas.
However, like any investment, there are risks associated with EB-5 projects. These risks include losing the invested EB-5 capital if the project developer misuses the funds or not getting the green card if the project fails to create the requisite number of jobs.
Although an $800,000 investment might be sufficient for category EB-5, there are additional requirements to fulfill. One of the requirements for getting a U.S. green card based on investment (category EB-5) is that the would-be immigrant pumps a minimum dollar amount into a U.S. business.
Home Equity Lines of Credit (HELOC) can allow homeowners easy access to EB5 financing. You must file documentation that evidences the bona fides of the loan with USCIS. This includes: (1) the lender's source of funding*; and (2) the method by which money was transferred from the lender to the EB-5 investor.
Two main investment paths for an EB‑5 visa are a direct investment in business and investment via a government-approved Regional Center. To make an informed decision, a potential investor has to learn about the differences between direct and Regional Center investments.
And remember, equity is expensive. Giving someone a 5% stake, means that that party owns 5% of your firm's net worth and profits forever!
On the other hand, an EB-5 candidate cannot simply buy real estate in the United States to qualify for the program. USCIS requires that the investment capital be placed at risk, such as through the creation of an enterprise, and funds must result in the creation of ten fulltime jobs per investor.
How does EB-5 financing work?
Congress established the Immigrant Investor Program, or EB-5 program, in 1990 in order to stimulate the U.S. economy. Currently, under this program, the foreign national must invest $800,000 or $1.05 million, depending on where the project is located, in a new commercial enterprise in the United States.
EB-5 Visa – The Fastest Means to Gain Permanent Residency
An EB-5 Visa, on the other hand, is known as the fastest way to obtain a U.S. Green Card. Through this process, the foreign investor can potentially be able to live and work in the United States within a matter of months, instead of years.
Obtaining Conditional Permanent Residency
Once an investor has met the EB-5 program's investment requirements, they and their immediate family are eligible for Conditional Permanent Residency. This status is initially granted for a two-year period.
The type of nonimmigrant visa you apply for and the supporting evidence you provide with the application will depend on your reasons for coming to the U.S. An immigration lawyer can help you identify the proper visa for your needs and complete the appropriate paperwork.
Can I get citizenship if I buy property in the USA? No, it is impossible to get American citizenship by investment. However, getting a residence permit by investment is possible, and then applying for a passport. You need to invest in a local enterprise of various types, including commercial real estate.
