Employment Fifth Preference (EB-5) immigrant Investors

Employment Creation Investors receive 7.1 percent of the yearly worldwide limit.  All applicants must file a Form I-526, Immigrant Petition by Alien Entrepreneur with USCIS. To qualify, an investor must invest between U.S. $500,000 and $1,000,000, depending on the employment rate in the geographical area, in a commercial enterprise in the United States which creates at least 10 new full-time jobs for U.S. citizens, permanent resident aliens, or other lawful immigrants, not including the investor and his or her family.  The investment can be in the form of cash, equipment, inventory, other tangible property, cash equivalents and indebtedness secured by assets owned by the foreign national provided that he or she is personally and primarily liable and the assets of the new commercial enterprise are not used to secure any of the indebtedness.  The investment must be acquired by lawful means.
There are two ways to invest which foreign investor may use within the EB-5 category: creating a new commercial enterprise or investing in a troubled business.

New Business Enterprise

To qualify the investor must:

1. Invest or be in the process of investing at least $1,000,000.  If your investment is in a designated targeted employment area (discussed further below) then the minimum investment requirement is $500,000.
2. Benefit the U.S. economy by providing goods or services to U.S. markets.
3. Create full-time employment for at least 10 U.S. workers.  This includes U.S. citizens, Green Card holders (lawful permanent residents) and other individuals lawfully authorized to work in the U.S., excluding the immigrant, his/her spouse, and children.
4. Be involved in the day-to-day management of the new business or directly manage it through formulating business policy.

Targeted Employment Area is defined by law as “a rural area or an area that has experienced high unemployment of at least 150 percent of the national average.” 

Troubled Business

To qualify the investor must:

1. Invest in a business that has existed for at least two years.
2. Invest in a business that has incurred a net loss, based on generally accepted accounting principles, for the 12 to 24 month period before you filed the Form I-526 Immigrant Petition by an Alien Entrepreneur.
3. The loss for the 12 to 24 month period must be at least equal to 20 percent of the business’s net worth before the loss.
4. Maintain the number of jobs at no less than the pre-investment level for a period of at least two years.
5. Be involved in the day-to-day management of the troubled business or directly manage it through formulating business policy. 
6. The same investment requirements of the new commercial enterprise investment apply to a troubled business investment ($1,000,000 or $500,000 in a targeted employment area).

Please contact our office http://stonehavenlaw.com/contact_us.html to set up a free consultation to determine whether the immigrant investor may be the most suitable process for you.

Disclaimer: The information provided here is of a general nature.  It should not be construed as legal advice and does not constitute an engagement of the Stone Haven Law Group or establish an attorney-client relationship.