I’ve been thinking about the EB-5 a lot..
EB-3 isn’t moving. At least not for India, China and Mexico. And EB-2 is ahead but prospects are bleak for much progress in 2011. The DREAM act is dead. CIR is all but dead for 2011 and even perhaps 2012 (read previous post) and the Startup Act is not finding takers yet. The latter still has a chance to pass this year though, fingers crossed.
But while all that’s true, I remind myself that the EB-5 is an option that’s already approved, available, and in fact, the Government is going the extra mile to sell it to you.
If you are new to EB-5’s, go and read some about it on Google or on this site. Just do a search for EB-5. It’s basically an investment based green card. If you invest $500,000 (or $1m in some cases), and create 10 US jobs, then you get a green card within 12 months or so. Neat and simple.
I’ve been researching it for the heck of it. And realized that I had many misconceptions regarding this visa. I think it’s WAY different than what most people think it is. So I’ll try to clarify some of it here.
1. You do NOT have to come up with a brilliant business idea to use the EB-5
The USCIS has sanctioned private organizations to form USCIS Regional Centers. These Regional Centers work with businesses to identify those that need investment. They then package these investments and offer them to EB-5 investors. Businesses gain because they get cheap money. Investors gain because they get their permanent residency.
If you do have an idea and want to start your own company with an investment, you are welcome to. But most people would rather leave that work to the Regional Centers.
2. You do NOT have to have $500,000 in savings.
You do have to come up with the money. But not necessarily from savings or your own pocket. You could use a variety of financing strategies. You could take a loan against a home in your home country. You could get a gift from a family member or multiple family members or angel investors. You could take a loan against your 401k or pension account here or in your home country.
This visa is good for two kinds of people. Those that have the money and the rest that have the will or are desperate enough to chase after freedom without waiting in line for 10 years.
So for instance, if you had an inheritance, an estate or access to capital in some other way, you could leverage all that to finance your American dream. And the best part is that it’s not as if you are losing that money. Most likely it’ll earn a good return if you choose the Regional Center business carefully or get help to do so.
I am not too sure if Angel investment from investors not related to you is allowed. This is something you should investigate. If so, then angelsoft.net and the like a great place to start. You will be surprised how many angel investors live right next to you and are willing to listen to your pitch. Most want to see some of your money invested and that the business is in an area that you have worked with or have prior experience with. They don’t necessarily look for prior entrepreneurial experience.
3. You do not have to create 10 jobs right away: You get a two year period to do that. And most Regional Center projects are specifically picked so that the job creation happens quickly.
4. You do NOT have to invest in businesses that you don’t understand
Regional Centers have projects ranging from restaurants, Auto dealerships, Hotels, Motels, Gas stations, Software companies, Hardware companies, Manufacturing and just about anything you could fancy.
And here’s the BEST one….
5. You don’t have to quit your job or your current visa or green card petition
You can continue working for the same employer or company in the same job. This is the part most people don’t realize. You just add another separate Eb-5 petition. But your current EB/FB petitions or H1-B visas stay valid even after you apply for the EB-5. And even after you get the green card you don’t HAVE to work for the business you invest in. As long as you are an active partner in the company that’s all that’s needed and investing money in the company is considered being an active partner.
6. You may not have to relocate to get the EB-5 visa
There are regional center projects in just about every state. There’s one most likely not too far from where you live. The $500k applies only to rural or high-unemployment areas. But there are plenty of towns with 15%+ unemployment right now so that should not be too hard.
7. It’s the only visa the Government will bend over backwards to give you
At 9.5% unemployment, every added job is important. This is the perfect time to try for this visa when the Government really needs to create jobs. The odds of approval are in your favour.
http://en.wikipedia.org/wiki/EB-5_visa is a starting point. Go take a look, who knows, you could be a business owner and a green card holder by this time next year.
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April 12th, 2011 at 12:53 pm
The stupidity of the whole GC wait is that, I have considerable assets in my home country. However, until my GC is in my hands I am not going to bring a cent of that money into the USA. If you extrapolate my situation across the hundreds of thousands waiting for a GC, the US could bring in tens of millions of dollars in investments. (I don’t mean direct business investment), but the money people are leaving outside the country waiting on the GC. I’ve already been here 5 years and have another 5 year wait for my EB3 GC. I am not chineese or indian either (or mexican or phillipina). Terrible.