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Posts Tagged ‘EB-5

EB-5 or EB-6 — Which Investor Visa is for You?

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The EB-5 visa for Immigrant Investors is a United States visa that allows foreign nationals who invest money in the United States to obtain permanent residency (green card ).  The usual investment threshold is $1 million (or $500,000 in a high unemployment or rural area), creating or preserving at least 10 jobs for U.S. workers excluding the investor and their immediate family.  Investments can be made directly in a commercial enterprise (new, or existing  “Troubled Business”), or into a US government approved 3rd party-managed investment which invests the money and  takes over the responsibility of creating the requisite jobs.   There usually is a management or administration fee for managing the investor’s investment.

If the investor’s EB-5 visa petition is approved, the investor and any dependents will be granted conditional permanent residence valid for two years.  Upon fulfilling appropriate requirements, the conditional permanent residency may then be petitioned to be converted to a permanent residency.

Under the new Immigration Reform bill currently passing through the US Congress, the current EB-5 program is going to be expanded to include a new investor visa — EB-6 — that would bring down the investment threshold for those looking to invest and gain residency in the United States. Since over the past many years, barely half of the available EB-5 visas are issues every year, the new visa is designed to make use of the same pool of available visas as the existing EB-5 visa.

The fulfillment requirements attached to EB-6 differ from those for EB-5, and also distinguishes between a non-immigrant or an immigrant visa.  To gain permanent residency, the EB-6 visa calls for an investment as well as creation of 5 jobs.  Just like EB-5, an application then many be made after 2 years for a permanent residency permit.

For those looking for a non-permanent stay in the United States a three-year non-immigrant visa can be granted upon an investment of $100,000 in a U.S. company or upon creation of at least 3 jobs and annual revenues exceeding $250,000 for two years in a row.

While not utilized fully, EB-5 applications are on an upward trend over recent years, according to the United States Citizenship and Immigration Service (USCIS). More and more new investors are able to get assistance with their applications from law firms, who can both represent the investor and advise in the matters of picking the right investment vehicles and/or 3rd party “managed investment” options for both EB-5 and EB-6 visas.

Hanishi  T. Ali is an immigration and international business attorney at Mithras Law Group, a greater Boston based immigration and international business law firm, which focuses on US, Canada and UK based Immigration law. Hanishi can be reached at 617-500-3233 or at www.mithraslaw.com.

Written by MithrasLaw

July 2, 2013 at 7:13 pm

“Startup Visa” Immigration Programs in USA & Canada

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There has been a lot of recent focus on the new proposed Startup Visa amendment to the U.S. immigration law.  This amendment would create a new immigrant visa category for entrepreneurs who have raised capital from qualified American investors.  This is a new employment based visa category — EB-6, and grants conditional permanent residency to the entrepreneur, who would be otherwise unable to avail of other existing immigrant visa categories such as EB-1 (Priority Worker) or EB-5 (the so-called investment visa).  The conditional residency can then convert to a permanent residency (green card) after two years if certain conditions are fulfilled.  Last week the Senate passed a bill containing this amendment by a vote of 68-32.  Before it becomes the law, the bill still has to pass the next hurdle in the House of Representatives.

Canadian government, in the meanwhile, has already launch a near identical Startup Visa program, starting in April 2013.  The aim is to encourage “innovative immigrant entrepreneurs who will create new jobs and spur economic growth.”  This is a pilot program, initially to run for five years and with a limited number of applications.  If the program is deemed successful after the initial five years, it may be formally made permanent.

The Canadian Startup Visa Program will enable immigrant entrepreneurs to launch companies that will create jobs in Canada with investment made by approved Canadian investors.  The Program will provide entrepreneurs with valuable assistance in navigating the Canadian business environment which can sometimes prove challenging for newcomers.

Hanishi  T. Ali is an immigration and international business attorney at Mithras Law Group, a greater Boston based immigration and international business law firm, which focuses on US, Canada and UK based Immigration law. Hanishi can be reached at 617-500-3233 or at www.mithraslaw.com.

EB-5 Progam Rewards Wealthy Foreign Investors with a Green-card

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The EB-5 immigrant visa program has rapidly grown in popularity over the last couple of years as the quickest path to permanent residency. To encourage foreign direct investment, the EB-5 employment based visa program was created by Congress in 1990 for qualified immigrant investors who invest in and manage job-creating in commercial enterprises, in order to stimulate the US economy through job creation and capital investment.

The USCIS estimates that as of this past September the program has created 41,940 jobs for U.S. workers – at no cost to the U.S. tax payer – from investments totaling $2.1 billion.

The minimum amount per investor is $1 million of capital, although that amount is reduced to $500,000 if the investment is made in a rural or high unemployment area. The invested funds must create or save at least 10 jobs for U.S. workers and the typical term of investment is 5 years. The 10,000 EB-5 green cards available each year, 3,000 are reserved for foreign nationals who invest through a Regional Center.
It should also be pointed out that the EB-5 Regional center program does not impose upon the foreign investor’s enterprise to directly employ 10 U.S. workers, instead it requires that 10 or more jobs be created directly or indirectly as a result of the investment.
The immigrant investor’s investment of “capital”, required to be at “risk”, is defined in the regulations has a sufficiently broad meaning so as that investment of capital not only include cash, but also to includes, equipment, tangible property, promissory note and indebtedness secured by assets owned by the foreign investor.

The investors are wealthy foreigners, primarily of Indian, Chinese, South African, Russian, and Pakistani origin, who have an opportunity to invest through varied businesses and in return for their investment they are able to able to obtain a green card without having to endure the long processing times associated with work and family related visa categories.

There are two distinct types of foreign investors that opt for the visa for cash program, one that place their savings to move to the U.S. so their children can get a better education and quality of life, or then college graduates that come from wealthy families who get the investing capital from their parents to they have an opportunity to settle here with a permanent green card and have the option to become a U.S. Citizen.
The Program has been renewed several times since its inception, and is currently due to expire September 30, 2012.

For more information on this program and eligibility please feel free to contact our office.

Written by MithrasLaw

March 9, 2012 at 10:51 am

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