Introduced to attract foreign investment and facilitate job creation in the US economy, the program has become very popular among affluent investors since the recent global recession. Recently, the US Congress has extended the investment immigration program till September 30, 2016. There are many myths and misconception surrounding the US EB-5 program.
The EB-5 Visa Guarantees Permanent Residence
The biggest misconception is that every EB-5 visa holder is assured the coveted green card i.e. the right to permanent residence in the USA. Qualifying for the green card involves something more than just complying with the minimum investment threshold requirements.
The investment must be made in an at-risk enterprise that does not guarantee return of capital or profits on the investment. The applicant must provide proof of source of funds along with a detailed business plan in an I-526 petition. Upon approval of the petition and availability of the EB-5 visa, the applicant and accompanying family members can apply for an EB-5 green card.
The green card is issued conditionally for a period of two years. After this period, the applicant must submit proof of continued compliance with all the requirements of the program. The conditions are subsequently removed and the right to permanent residence becomes absolute only after thorough scrutiny by the USCIS and other government agencies. Many investors fail to meet conditions of the program and are left with an investment in the United States.
The EB-5 Visa Offers Fast-Track Permanent Residence
Approval of the application, issue of the visa, and removal of conditions—these three steps can take years to be completed depending on the applicant’s country of birth and many other factors. Currently, the I-526 petition is processed in a little more than a year provided the applicant is not required to submit additional evidence.
The adjustment of status process can take 5-6 months in the USA and more than a year if the applicant seeks an immigrant visa in a foreign country. The removal of conditions petition, I-829 petition, is processed over a period of one year.
The processing times are the same for everybody and there is no provision for fast-track processing for EB-5 applicants.
The EB-5 Visa is Restricted to Affluent Immigrants
While the minimum investment requirement ranges between $500,000 and $1 million, it is not mandatory for all applicants to make the investment from their own funds. As long as the source of funding is legitimate, the applicant can rely on gifts, inheritances, loans from owned companies, and even sale of home equity to finance the investment.
There is no minimum net worth requirement for EB-5 applicants. While wealthy individuals may apply, the EB-5 program does not bar ordinary immigrants from applying for permanent residence.
The EB-5 Visa Caters Solely to Wealthy Americans
The job-creation requirement is designed to benefit all Americans irrespective of their wealth or status. A Regional Center investment must generate at least ten indirect full-time permanent jobs. In case of other projects, the jobs must be created directly from the enterprise. Till date, the EB-5 program has created more than 77,000 jobs and has attracted more than $4 billion investments throughout the country.
The EB-5 Visa Involves Very Lenient Security Checks
Every EB-5 applicant undergoes the same background checks as any other applicant for the US green card. The investor has to undergo background checks when applying for the conditional green card and again when seeking removal of the conditional status.
Further, the project or enterprise in which the investment is made too is reviewed for all regulatory compliances. The checks cover the applicant’s background, his or her source of funds, and the legality of the transfer of the funds, the escrow account, and other aspects as provided for under the Program.
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