The American Dream continues on, and people around the world are fulfilling their own American immigration dream by obtaining a green card through the EB-5 Visa Program. When compared to other countries, the United States is still a safe place to start a business, invest money, purchase a home or commercial property, and raise a family. The EB-5 visa and the various paths it offers allow immigrants to live and work anywhere in the country. There are even passive investment opportunities for those who don’t wish to work, or would like to work someplace other than the EB-5 project they invest in. Our team of DC area EB-5 lawyers and professionals are here to assist you throughout every stage of the EB-5 visa process.
The United States was built by immigrant communities, and despite economic hardship across the globe, people still desire to move to the U.S. for a better life and more opportunities for their children.
How can the EB-5 visa benefit you and your family? U.S. immigration law is designed in a way that unfortunately, doesn’t offer many opportunities for permanent residency (green card) to people without ties to the United States. Unless you have a relative to sponsor you, or an employer willing to sponsor you, getting your green card through the EB-5 visa may be your only option.
The EB-5 Visa Program allows foreign nationals the opportunity to make a qualified investment into a U.S. business in exchange for their green card. Unlike other U.S. visas, there are no English language requirements, family ties or job offers needed. Provided the investor invests the requisite funds they likely qualify.
What are your options for EB-5 Investments? Most EB-5 investment opportunities offer flexible options for potential investors. Depending on your needs and goals, you can take an active role in the project or a completely passive role. The investment amount is $1 Million but may be reduced to $500,000 in certain designated areas.
Often, an investor wishes to fund the EB-5 investment and not worry about the day-to-day operations of the business and immigration requirements. This is absolutely possible and encouraged by immigration attorneys. As an EB-5 investor, you don’t want to be burdened with EB-5 compliance and immigration issues – leave those worries up to the EB-5 project management.
Once invested, you are free to live and work (or not work) anywhere in the United States.
To learn more about this exciting opportunity for you and your family to obtain green cards through the EB-5 Visa Program and how you can make your American Dream a reality, contact Virginia EB-5 attorney Kyle Barella at General Counsel, P.C., 703.556.0411, or by email at email@example.com. You can visit our website at www.eb5investmentlaw.com. Our office is conveniently located in the Washington DC Metro area in the McLean, VA Business Center.
When researching the options for making an EB-5 investment, potential investors frequently hear about the two EB-5 investment paths - direct and indirect. But are there really three paths? The answer to this question is yes and no. This blog will explore the different options a potential investor has when deciding to make their EB-5 Green Card investment.
The most popular option for the EB-5 Visa is the indirect regional center investment. The indirect regional center investment allows the client to make a completely passive investment in a project that will be the sole responsibility of a developer to maintain. These investments are often loan based, but in some cases equity based investments.
The EB-5 investor will not have any managerial or day-to-day responsibility. They simply invest their money and leave it in the hands of the developer to meet the immigration requirements so they can become full-fledged green card holders. It’s an affordable option because the vast majority of regional center projects are located in targeted employment areas that allow for the reduced investment of only $500,000.
What are the positive attributes of an indirect regional center investment? The reduced investment amount is what makes the regional center path most appealing to clients. Some investors also enjoy not having to worry about the day-to-day burden of running the business. While a client may have created a successful business in their home country, they may be unfamiliar with US business practices and culture and opt to have the project managed for them. For these investors, the regional center path fits perfectly into their immigration plan.
What are the negatives of an indirect regional center investment? Regional center investments will offer a low return. This isn’t to say that the project is bad – it’s just the nature of EB-5. A typical regional center project will generally yield a 0.5% - 1% return. This isn’t very high, so investors wishing to obtain a larger return should choose a different path for their EB-5 investment. Clients should be very wary of regional center projects offering them large returns. Another potential negative aspect is that the EB-5 investor doesn’t have any decision making power in the business. This may not be ideal for clients that consider themselves to be savvy investors.
So what are the options for investors not wishing to invest through the indirect regional center path? Here is where the discussion of three paths to EB-5 comes up. Many clients (and immigration attorneys) misinterpret the rules regarding a direct (non regional center) investment. Often they think the investor must be involved in the day-to-day operation and running of the business. They believe they have to live in the same city and go into the business daily to qualify for EB-5. That is one option, what I refer to as a “true” direct EB-5 investment, but it’s not the only option for direct EB-5.
So what are the two paths under the direct EB-5 umbrella? It’s first important to examine the rules regulating the requirement that the EB-5 immigrant investor be engaged in the management of the new commercial enterprise. The EB-5 Program requires the immigrant investor to be engaged in the management of the new commercial enterprise, either through the exercise of day-to-day managerial responsibility OR through policy formulation. 8 C.F.R. §204.6(j)(5).
For investors courageous enough to take the plunge and run their own EB-5 business, they can do so through the “true” direct EB-5 path. They will be responsible for the creation and day-to-day management of the business, as well as meeting all the immigration requirements. Their investment return will be based solely on their own personal efforts. This path can prove to be risky and should only be undertaken by clients confident in their ability to meet all requirements under the program.
This may work for some investors, but the majority of EB-5 clients do not want to assume full responsibility for their immigration future. These clients may benefit from a more “hands off” direct investment. This “hands off” direct investment path is great for investors wishing to invest in smaller projects that may yield significantly higher returns than the indirect regional center investment. In conformity with the rules, these investors will have a policy-making role by being a corporate officer or member of the corporate board of directors. Just like the regional center investment, this EB-5 Visa project can be placed in a targeted employment area and qualify for the $500,000 investment.
These investors get the best of both worlds. Unlike the regional center path they have some control over the business and typically receive a larger return. However, there is no requirement for then to run the day-to-day operations and they leave the responsibility of meeting the immigration requirements to the project developer. The EB-5 investor is free to live and work anywhere in the United States, regardless of the business location. This path is ideal for all EB-5 investors frustrated with the lack of control and low returns of an indirect regional center investment.
For more information on procuring your U.S. Green Card through the EB-5 Visa Program and which EB-5 path is most suited for your investment needs, contact General Counsel, P.C. EB-5 lawyer Kyle Barella today. Our EB-5 team serves EB-5 Visa clients in Washington DC, Virginia and around the world. Our office is located in Northern Virginia in the McLean Business Center.
www.eb5investmentlaw.com | www.generalcounsellaw.com
6849 Old Dominion Dr. Suite 220, McLean, VA 22101 | 703.556.0411 | firstname.lastname@example.org
Washington DC EB-5 Attorney | Virginia EB-5 Attorney
Since the collapse of the Soviet Union in the early 1990s, the United States has welcomed a steady flow of immigrants from Russia – many settling in cities like Miami, New York, Denver, Los Angeles and Baltimore.
Potential Russian EB-5 investors, while prosperous in their home country, choose to leave when government corruption and unpredictability become a factor. These investors recognize that Russia cannot provide a suitable investment environment to protect their wealth, only economic uncertainty. This is evident with Russia’s recent annexation of Crimea, which has contributed to the Russian ruble and Russian stock market plummeting in March of 2014. The $500,000 EB-5 investment now costs up to 50% more in rubles than it would have just a few years ago. Fortunately, many wealthy Russians who qualify for the EB-5 Visa maintain dollar and/or Euro currency accounts outside of Russia.
With the recent U.S. sanctions in place, can Russian investors expect other uncertainties during the EB-5 investment visa process?
On its face, it appears that unless the EB-5 investor is part of President Vladimir Putin’s “inner circle”, most EB-5 clients will not be directly affected by the sanctions. However, although the sanctions appear insignificant to most individuals in Russia, recent sanctions against Bank Rossiya for example, prompted Standard & Poor’s (S&P) rating agency to downgrade its outlook for the lender from stable to a negative rating. As a result, the S&P foresees a deterioration of the bank’s future business and financial profiles. Further, Bank Rossiya can no longer engage in dollar-based transactions, and western banks will not be able to engage in business with them. This has created immense economic uncertainty in the country.
The sanctions on Bank Rossiya were meant to directly impact Putin and other top government officials. The actual ramifications to potential investors is beginning to become evident. Economists predicted correctly that the crisis over Crimea would tip the Russian economy into a recession in 2014, which should serve as a push to potential EB-5 Investors to leave Russia sooner.
For more information on obtaining your EB-5 Visa, contact Washington, DC EB-5 lawyer Kyle Barella. Our office is equipped to handle EB-5 clients in English and Russian.
Kyle Barella - General Counsel, P.C. | +1 (202) 621-3198 | email@example.com | www.eb5investmentlaw.com | www.generalcounsellaw.com
The Information contained in this blog is for information purposes only, and should not be considered legal advice for any individual case or situation. The information provided is not a substitute for consultation with an attorney. No attorney/client relationship is created by the information contained herein.
Kyle Barella, Esq.