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What is the EB-5 visa and how does it work?
The EB-5 visa program is an immigration project aimed at giving foreign investors the chance to obtain a permanent U.S. green card in exchange for a high-priced investment in an American business.
But as an alternative, simplified definition, H. Ronald Klasko, an immigration attorney in Philadelphia called the program “the hottest thing going on right now in immigration,” according to Law.com.
Specifically, EB-5 program authorizes the U.S. Citizenship and Immigration Services (USCIS) to grant up to 10,000 immigrant visas each year to foreign nationals who wish to establish a permanent residence in the U.S.
Interested parties are required to invest at least $1,000,000 in an American startup or existing business anywhere in the country, and create 10 jobs by way of their financing.
However, the USCIS now accepts investments of at least $500,000, provided that the targeted business lies in an area in which the unemployment rate exceeds the national average by at least 150 percent, or has been approved as an EB-5 regional center.
Companies can apply to become certified as an EB-5 regional center, a group of which can collectively issue up to 3,000 visas each year and match foreign investors with American startups.
Over the past year, the number of enterprises certified as EB-5 visa program regional centers, has grown from about 20 to 82, according to the USCIS.
Ron Drinkard, director of the Alabama Center for Foreign Investment told NPR, “To qualify [for investment], a company needs to show loss of a minimum of 20 percent of its net worth in the past 12 to 24 months.”
He added, “There’s virtually not a company out there that couldn’t show that right now.”
The popularity of the EB-5 investment opportunities has not been limited to regional centers.
According to the State Department, the number of approved EB-5 visas in all investment areas has nearly tripled between fiscal years 2008 and 2009.
In exchange for their investment, foreign nationals may become permanent U.S. residents within 5 years of their initial application.
Brian and Jane Thompson, a couple from Essex, England recently became interested in the EB-5 visa program after targeting Florida as an ideal retirement spot, noting its low real estate costs, the Daily Mail reports.
After investing in a Seattle-based real estate company, Brian told the news source, “I feel as confident as you can.”