CanAm recently sat down with Jacob Ratzan, an immigration lawyer specializing in business and investment cases. With almost two decades of experience, Jacob brings a wealth of knowledge and dedication to assisting companies and individual investors in their U.S. immigration journeys through business ventures. Their discussion illuminated critical aspects of the EB-5 visa program, its recent updates, and its benefits.
You can watch their full conversation here.
In this blog post, we discuss some of the essential points covered in their discussion.
Understanding the EB-5 Visa
The EB-5 visa program is a gateway for foreign investors to obtain a green card by investing in new commercial enterprises in the United States. The program aims to bolster the U.S. economy through job creation and capital investment by foreign nationals. To qualify, investors must meet one of the following financial thresholds:
- $800,000 for investments in targeted employment areas (TEAs), which include rural or high-unemployment regions.
- $1.05 million for investments outside TEAs.
The primary objective of the EB-5 program is to create at least 10 full-time jobs for U.S. workers for each EB-5 investor. This job creation requirement is a cornerstone of the program, ensuring that the investment contributes significantly to the U.S. economy.
Core Requirements of the EB-5 Program
To successfully apply for the EB-5 visa, investors must fulfill three core requirements:
- Qualifying Investment: The investment must be made in a new commercial enterprise, which can be any for-profit activity formed for the ongoing conduct of lawful business.
- Job Creation: The investment must create or preserve at least 10 full-time jobs for qualifying U.S. workers within two years of the investor’s admission to the United States as a conditional permanent resident.
- Lawful Source of Funds: Investors must provide evidence that their investment capital comes from lawful sources. This requirement is crucial to ensure that the funds were obtained through legal means and are available for use in the investment.
Recent Changes and Concurrent Filing
Significant updates to the EB-5 program were introduced in March 2022. One of the most notable changes is the option for concurrent filing. This update allows investors already in the U.S. on a valid visa to file for an adjustment of status concurrently with the I-526 petition. Concurrent filing offers several advantages, primarily enabling investors to remain in the U.S. and obtain work and travel permits while their application is pending.
Before this change, investors had to wait for the approval of their I-526 petition before starting the adjustment of status process, a period that could extend over several years. With the new concurrent filing option, both applications can be submitted simultaneously, significantly accelerating the path to permanent residency.
Benefits and Considerations of Concurrent Filing
Concurrent filing provides numerous benefits, making the EB-5 visa program even more attractive to potential investors:
- Stay in the U.S.: Investors can remain in the U.S. throughout the application process, avoiding the need to leave the country.
- Work and Travel Permits: Within approximately six months, investors can obtain work and travel permits, allowing them to live and work freely in the U.S.
- Social Security Number: Access to a Social Security number enables investors to open bank accounts, build credit, and integrate more fully into American life.
- Health Insurance: Investors become eligible for health insurance under the Affordable Care Act (Obamacare), providing essential coverage.
- Educational Benefits: Children of investors may gain access to educational benefits and scholarships, enhancing their opportunities for academic success.
Rural Projects and Priority Processing
A highlight of the recent regulations is the priority processing for investments in rural projects. These projects benefit from a lower minimum investment requirement and expedited processing times. The emphasis on rural projects aligns with the program’s goal of promoting economic growth in less-developed areas of the country.
Priority processing has revitalized the EB-5 program by addressing previous delays and making it more appealing to investors. The faster approval times for rural projects encourage investment in these regions, fostering job creation and economic development.
Conclusion
The EB-5 visa program presents a valuable opportunity for foreign investors to achieve U.S. permanent residency through significant economic contributions. Recent changes, such as concurrent filing and priority processing for rural projects, have enhanced the program’s appeal and efficiency.
For those considering the EB-5 visa, consulting with seasoned professionals and selecting reputable regional centers is crucial to ensure a smooth and successful application process.
