Monday, July 4, 2011

Stages of an EB-5 Green Card

What are the stages of an EB-5 Green Card for a person investing from abroad?

The first stage is the filing of the EB-5 petition [Form I-526].

The second stage is processing the application at the National Visa Center [Form DS-230].

The third stage is the interview by the American Consul in the applicant’s home country after which the applicant is admitted to the U.S. as a “conditional” permanent resident for two years.

The fourth stage is to apply for removal of conditional resident status [Form I-829] and become a full permanent resident (green card holder).

We have easy to understand flow charts of the EB-5 process.

Martin Lawler

EB-5 Equity vs. Loan Plan

Each EB-5 investor must make an equity investment in a Regional Center or business. The Regional Center or business may then either make an equity investment in a project or loan the capital to the project. What is the difference?

Many like the loan plan as there is a due date on the note and the time is set for return of the capital. The equity investment requires refinance or sale of the project or some other source of funds for return of the investor’s capital. Both investments must be “at risk,” which means the capital is subject to loss.

The investor should discuss the “exit strategy” with the Regional Center for when the capital may be returned.

Martin Lawler

Use the Proper Visa or Else

The New York Times on June 22, 2011 reported the large Indian outsourcing company and labor contractor InfoSystems is being indicted for visa fraud. An employee has claimed workers were brought from India on B-1 [temporary work] visas but worked in the U.S. for which they should have had an H-1B visa for local work.

A word to the wise – use the proper visa. The government takes its restrictive rules very seriously. Feel free to consult with me about the type of visa for the service the employee will perform.

Martin Lawler

How Quickly Can an EB-5 Application be Filed?

We filed one in three weeks. It usually takes the applicant about one to two months to provide us all the documents needed to show the path of funds and the source of the investment comes from a legal source.

It is best to provide as many documents as possible. We work closely with our clients to document each application. We guide our clients and explain the type of evidence usually required, which varies with each case. One client received a gift from her father who earned the funds when he sold a ship, which involves a lot of paperwork.

We have well trained staff who advise our clients on the documents needed to prove each aspect of the case.

Martin Lawler

EB-5 Family Immigration

Can My Family Immigrate With Me?

Yes, provided the child(ren) are under age 21 when the first EB-5 petition is filed – the I-526. The Child Status Protection Act should freeze the child’s age. Thus, even if a child turns 21 after the I-526 is filed, they can still immigrate with the principal applicant.

Family dependents may immigrate with the principal applicant or later on following to join the investor. The dependents may not however immigrate first, unless they have their own EB-5 application which requires a separate petition.

Martin Lawler

EB-5 - Regional Center or Own Business

Should I Invest in a Regional Center or Create my Own Business?

Regional Center investments have many advantages. Here are a few:

• Regional Centers may count indirect employment creation as opposed to direct jobs at the project. This is often critical, such as for a shopping center or a hotel which may have many more indirect than direct jobs created.

• Regional Centers are run by someone else. It is difficult to operate a business upon arrival in the U.S. and some are not born entrepreneurs.

• As soon as the Regional Center investment is made the I-526 EB-5 petition can be filed as the funds are “at risk.” Those who create their own business must first spend a substantial portion of the capital. That can be hard to do when one is abroad without a trusted business manager.

• Often Regional Center projects have been pre-approved by USCIS as far as the business plan and job creation methodology is concerned.

I am pleased to discuss the other advantages of Regional Centers with investors.

Martin Lawler

Saturday, July 2, 2011

EB-5 Regional Centers

The EB-5 Regional Center (but not self) investor law expires on September 30, 2012. Extension is, however, expected. The law was first enacted in 1993 and has been extended many times.

At Congressional hearings when this law was last extended, no one spoke against it. It is one thing Democrats and Republicans can agree upon.

When the law was last extended, it happened just before expiration. USCIS expedited the cases and the Consuls quickly issued the EB-5 visas – some in a matter of days. Even if the statute is not extended, it appears that USCIS will continue to process I-829 Removal of Conditional Resident Status applications, but USCIS has never explained its policy, if the statute were to expire.

The Association to Invest In the USA (IIUSA), the EB-5 Regional Center trade association, is starting to lobby Congress for extension of the statute, which as I said, is expected to be extended but historically has not been extended until the last minute before expiration.

The EB-5 statute is creating thousands of jobs and funding many projects. Thus, it is expected the law will be extended.

Martin Lawler