The Immigrant Investor Program, otherwise known as the “EB-5,” allows foreign nationals to obtain permanent residency (green card) by making a capital investment in a commercial enterprise in the United States. Congress created the EB-5 program in 1990 as a way to stimulate the economy by creating jobs. A commercial enterprise is defined as any for-profit activity formed for the ongoing conduct of lawful business including, but not limited to a sole proprietorship, partnership (whether limited or general), holding company, joint venture, corporation, business trust or other entity that may be publicly or privately owned.
One the immigrant investor is admitted to the United States he/she is granted Conditional Permanent Resident status. This status is conditional upon whether 10 full-time jobs are created for qualifying U.S. workers within a two year period. These jobs may be either direct jobs or indirect jobs. Direct jobs are real identifiable jobs for qualified employees situated inside the company in which the immigrant investor has directly invested capital. Indirect jobs are those that were made collaterally or as a consequence of capital invested in a commercial enterprise affiliated with a regional center by an immigrant investor. A foreign investor may only use the indirect job calculation if affiliated with a regional center.
Capital is defined as cash, equipment, inventory, other tangible property, cash equivalents and indebtedness secured by assets owned by the immigrant investor entrepreneur, if the investor entrepreneur is personally and primarily liable and that the assets of the new company upon which the petition is based are not used to secure any of the indebtedness. All capital shall be valued at fair-market value in United States dollars. If you have questions about the EB-5 Immigrant Investor program, the attorneys at The Law Firm of Shihab & Associates, Co., LPA have decades of combined experience. Contact us for a consultation.