Visa & More: EB-5 immigration visa for investors

In our last newsletter, we informed you about the advantages and disadvantages of the H-3 visa compared to the J-1 (standard) visa for interns or trainees. Today, we would like to inform you about the EB-5 visa that investors can apply for since 1990 in order to set up a promising enterprise in the US.

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QUESTION: How do I apply for the EB-5 visa?

ANSWER: The applicant has to submit form I-526 together with the processing fees and all documentation listed in this article to the USCIS Service Center.

QUESTION: What are the basic requirements for the EB-5 visa?

ANSWER: The first requirement is for the applicant to set up an enterprise in the US or to invest in an already existing enterprise that has been set up or restructured since November 19, 1990. The second requirement is a minimum investment of $1 million (or $500,000 in a targeted employment area).The second requirement is the creation of at least 10 full-time jobs.

QUESTION: What types of investment qualify for the EB-5 visa?

ANSWER: The investment can be made in the form of cash, equipment, inventory, or other tangible property. The investor must be personally and primarily liable and does not use the assets of the new enterprise to secure any kind of indebtedness. Capital that has been acquired illegally is specifically excluded.

QUESTION: How much investment is required of the EB-5 investor?

ANSWER: Required is a minimum investment of $1 million ($500,000 in a targeted employment area). Targeted employment areas are:

Rural areas that are not within the metropolitan are or the boundaries of a city or town with a population of at least 20,000; and areas where the unemployment rate is higher than 150% of the national average.

QUESTION: How can an investor invest in a new enterprise?

ANSWER: The investor may set up his own business, acquire an already existing business or expand an already existing business. Investment in an already existing company must significantly increase the company's value or create 40% new jobs within the company. The sum of investment must be at least $1 million (or $500,000 in a targeted employment area). In addition, the applicant had to prove that the investment money was obtained legally and set aside for investment purposes.

QUESTION: Does an investment made by several investors qualify for the EB-5 visa?

ANSWER: Yes. Several investors may set up a new enterprise, however, each investor has to meet the requirements for the EB-5 application individually. For example, each investor has to create ten jobs for US workers.

QUESTION: Does the EB-5 investor have to be involved in the company's management?

ANSWER: Yes. An investor has to work in the new business's management, either by managing the day-to-day affairs of a business, or by participating in the writing of corporate guidelines. A merely passive function will not qualify. An EB-5 applicant should be able to demonstrate an active role in the management, e.g. by providing documents that prove an executive position or a position as a member of the managing board.