MEMORANDUM
From: Richard Scholnick
Re: USA Investor Visa
The United States government allows what is commonly called an investment Green Card, namely, the EB-5 program. The US government rewards immigrant investors with a Green Card if they help the US economy by creating jobs. There are essentially two EB-5 programs, namely, the Regular Program and the Regional Center Program.
For an applicant to qualify under the Regular Program, the following three characteristics must be met: investment in a new commercial enterprise; investment of at least $1,000,000 into the business; and employment of at least 10 full time US workers. [The investor, his/her spouse and children may not be counted towards the ten employees whereas other family members may be counted.]
This investment may consist of the contribution of various forms of capital including cash, equipment, inventory, property and other tangible forms of capital. Borrowed funds may be used as long as the investor is personally liable in the event of a default and the loan is secured with assets other than the assets of the business being purchased or developed. An investment of $1,000,000 is generally the minimum. There are exceptions to this rule for certain targeted employment areas. Total minimum investment is typically in the amount of $1,075,000-1,100,000 including the actual investment, legal fees, government filing costs and commissions.
The second program is the Regional Center Program. This is ideal for the retiree or inactive investor. In a regional program, the investor can qualify by presenting evidence that the 10 job requirement will be created throughout the Regional economy, supported by an economist’s report. Therefore, for those not interested in day-to-day management or running active business, the Regional Center Program is perfect investment vehicle. The minimum investment is $500,000. The total investment cost ranges from $535,000-550,000 including the minimum investment, legal fees, government filing costs and commissions.
The investor is not required to live in the place of the investment. He/she can live wherever he/she wishes in the United States. The Regional Center Program offers a quick path to a Green Card.
Investments are set up in the form of a partnership. Each investment vehicle has an experienced general partner that has a track record of returning investments to its partners, generally with a profit. Investments include real estate properties converting industrial warehouse real estate to higher value mixed use commercial properties including office space, retail shops and storage. Real estate investments also include revitalizing center city properties for use as trade centers, convention centers etc as well as a ski resort. Additional investment vehicles also include non-real estate ventures, namely, dairy farms and agricultural consortiums. Investors participate as limited partners of a limited partnership and reap the benefits of monthly return from tenant rentals, share of future appreciation and the operations’ income derived from the sale of various products and services. Both foreign nationals and United States citizens participate in these investments. In many cases a significant market exists for the sale of these limited partnership units.
Generous commissions are paid to professionals that connect the investor to the limited partnership vehicle.
The investor must generally produce 5 years of tax returns to substantiate the source of the investment funds. Alternatively, the investor must present evidence that traces the capital through bank transfers and other documentation, from the investor directly to the enterprise. An investor transfers the funds and an I-526 petition is prepared by counsel and filed by the foreign investor with the immigration authorities. The entire process generally takes approximately one year. Once the immigration authorities approve the investor’s Green Card, it is conditional for two years. The conditional green card status confers the same rights as a permanent unconditional Green Card. About 24 months after the conditional Green Card is granted, the investor must reconfirm that the investment has been made and is still in place. An application to remove the conditional green card is then filed with the immigration authorities.
Once the condition is removed, the Green Card is granted for indefinite permanent resident status and work permission in the United States. From the time of the application for a Green Card until approval of the removal of the conditions usually takes about 3.5 years. Thereafter, the investment may be sold. US citizenship is possible 2.5 years later, 5 years after approval of the Conditional Green Card.
Please note that there are no guarantees of the investment, the total investment is at risk. Our law firm has experience in conducting due diligence for these types of investments and would welcome the opportunity to assist potential immigrant investors in evaluating the viability of each investment.
Generally, the investor will receive a conditional green card within 9 months from the date the petition is submitted. Since the investment is immediately at risk, the first step in the procedure is for the applicant to complete all information required by the federal government and submit it to us for our internal and confidential review. We will review this information and inform the applicant if he/she will qualifies for the green card. If we agree that the applicant qualifies, we will provide a guarantee in the form of an opinion letter that indicates that the applicant will receive the conditional green card.