While $1,000,000 is certainly a substantial amount of money to invest in a new commercial business, often it is the requirement to create 10 full-time positions and preserve these jobs over the three or more years required to process the green card that creates problems for investors.  Hiring 10 full-time workers is very expensive when salaries and benefits are considered.  In addition, the investor must meet many technical requirements, such as very thorough documentation tracing the source of the investment money.  Although costly, for the right person, the EB-5 program can be the best way to qualify for a U.S. green card.

Investors usually find it easier to meet EB-5 requirements if they invest in a Regional Center.  A Regional Center is a business that attracts investment capital from several investors.  To qualify as a Regional Center, the business must satisfy criteria establishing its projected positive contributions to the economy and be approved by the Investor and Regional Center Unit of the United States Citizenship and Immigration Services. 

An investor can benefit in at least three ways by investing in a Regional Center.  First, the minimum investment in a Regional Center is $500,000 instead of $1,000,000.  Second, the investor need only show that his or her investment will create 10 full-time jobs in the local community as opposed to showing that the business will actually hire 10 full-time employees.  Normally the investor can show the investment will create ten full-time jobs in the local community through a statistical analysis, such as an econometric report showing how statistically the investment will produce jobs.  Third, Regional Centers established their potential to help the economy when they submitted their application  for Regional Center status to the United States Citizenship and Immigration Services; thus, the USCIS is usually more disposed to approve a case that is processed through a Regional Center.

Some investors will prefer to use the general EB-5 program rather than invest in a Regional Center, even if costs will be higher and requirements stricter.  One reason for this choice is the investor may want more authority to run a business and a say in the type of business to conduct.  An investment in a Regional Center means the investor will receive only a minority share in the Regional Center’s business.  The investor may prefer to start his or her own business.  In addition, Regional Centers mandate that investors sign contracts that restrict their potential profits and ability to run the company.  

The EB-5 Immigrant Investor Visa program is a good vehicle for obtaining a U.S. green card for those with substantial resources.  It also benefits the United States by stimulating local economies through business activity and job creation.  This area of immigration law is, however, extremely complex and requires intense legal preparation.  If you or someone you know can benefit from this program, please contact the experienced immigration attorneys at Smith & Garg, PC. 

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