EB5 investments are not a new thing. They have been a way for the United States economy to get international investors to provide capital to their home-grown for-profit business projects for about 30 years. It was passed into action by the United States Congress in 1990 and it is held by USCIS (the United States Citizenship and Immigration Services). It is not only a way for foreigners to invest in businesses but it is also a way for these international investors to obtain a green card.
What To Invest
Investment in businesses is all about how much capital you are able to give, hoping for a return. However, regarding EB5 there are certain amounts that you have to give in so that you are able to get that green card. The lowest amount is 900 000 US dollars. This is for TEA (targeted employment areas). TEA are areas that are often rural or that of having a high unemployment rate. This could be why the capital is lower compared to other investments regarding EB5. These other investments outside of TEA require 1, 8 million US dollars of capital to be legible for EB5 visas.
Other Requirements For EB5
The purpose of an EB5 Investment is not only to give over capital but to make sure that at least 10 full-time jobs are created for two years of employment. The latter could be one of the many reasons the EB5 was started in the first place. One goal is to increase foreign investment in the US economy while the other is job creation for the citizens. Plus, the investments are about high-risk and, therefore, high reward and the business projects that should be aimed for are the for-profits ones.
How To Invest
Investment is the name of the game and there are two ways to do so. You could be a direct investor or something that goes through an EB5 regional center.
A direct investor would have a more hands-on approach regarding the project that they poured their capital into. This option is for those that have the primary focus on getting a return on their investment as well as to be a part of the management of the project. Obtain a green card through the process could be viewed as important but secondary.
Going through an EB5 regional center could take a lot of stress from the investor. This is due to the idea that the investor would have a more passive role in the project, making their involvement in the work more minimum. It is often for those that wish to obtain a green card more than making a return. Although, the latter would be nice it not the primary objective. This option is used by about 93 percent of immigrants going for the EB5 visa. For more information about EB5 check here.
