An EB5 is s special American Visa for investors. That, in a nutshell, describes what an EB5 is. This article will provide a few more details about this type of visa including who can apply for it, the process, and how much it costs, as well as the history of the visa. The purpose of the EB5 is to encourage foreign investment in the United States. It’s a way of bringing in more money into the country which ultimately helps the country’s economy. The visa was created in 1991 and has a standard program.
The standard program requires a foreign investor to contribute $1,000,000 American dollars into US businesses and create 10 jobs. Once an investor meets these standard requirements, he or she is permitted to legally live permanently in the United States. The investor’s spouse and children under the age of 21 are also allowed to legally live in the United States if the investor meets these basic requirements. Although the EB5 has been around since 1991, it wasn’t used much for the first 17 years it was around. Under the EB5 visa program, the government was allowed to issue 10,000 visas. Only approximately 500 visas a year were issued under EB5.
The reason for this has a lot to do with the difficulty an investor faces when trying to develop a successful business so far from his or her home country. The United States can be significantly different from many of these investors home countries with different challenges and a different environment that can impact the growth of a business. In 1992 the original EB5 program was modified under a title called the Regional Center Pilot Program. This new program allowed investors to make a smaller investment of $500,000 US dollars in regional centers and qualified American investments. This proposal was created in junction with a government mandate to stimulate economic growth and employment activity. EB 5 Visa Service
This helped the EB5 become more popular. For wealthy investors, $500,000 in investments was a reasonable amount and a justifiable move to get a green card. The changes made the EB5 visa more appealing, but unfortunately mismanagement and poor monitoring caused the EB5 Regional Center Pilot Program to be suspended between 1998 and 2003. It was discovered that there were abuses to the system that was ultimately costing the United States money. While the program was suspended, work was done to remove the abuses to the system. A new Investor and Regional Center United was created in order to make it easier to monitor and regulate applications.
There is still an annual quota limit of allowable EB5 visas. This limit is 10,000. In order to qualify an investor needs to invest $500,000 USD in an investment center approved by the United States Citizenship and Immigration Services. The investment is required to indirectly or directly create 10 US-based jobs. The investor is also required to allow a regional center to have a limited partnership role in any company or investment which allows the US government to have a minimal policy-making role in the company or investment.