EB-5 “Basic” Program granting Green Cards to people investing US $ 1 Million Dollar (Half Million if the investment is made in a remote or Targeted Employment Area) in a New Commercial Enterprise (NCE), employing 10 Americans full time in that NCE and running the said NCE by self (was introduced in year 1990).
EB-5 “Pilot” Program in which by investing US $ One Million Dollar (Half Million if the investment is made in a remote or Targeted Employment Area in a recognized Regional Center of USA, the Investors are issued Green Cards (was introduced in the year 1993).
Investor is required to show his/her” Source of Funds” and “Path of Funds”.
The money should be white and investor should not be guilty of any crime.
Amount of investment could be self earned, received by way of legacy, from sale of property, borrowed or gifted funds.
Funds could come from the Investor’s own country or from any part of the world, even USA.
Green Cards issued under EB-5 Program are restricted by yearly quota.
India’s share is 700 Green Cards in a year. This number is counted for the Investor himself as well as their Dependents who receives Dependent Green Cards.
Along with the investor his/her spouse and unmarried children below the age of 21 years also receive Green Cards.
At present it takes about 2 years for the Petitions filed for Indians under EB-5 Program to be processed and approved and few more months for the investor to receive Immigrant Visa on which after entering USA he/she receives a Green Card.
Green Card issued to the Investor and his/her Dependents are initially conditional, valid for 2 years.
After 21 months they have to apply to make it permanent. They are required to show that the investment (whether in own NCE or in a Regional Center) is not withdrawn.
Application to make the Green Card permanent takes about 3 years or more to be processed and approved.
Regional Centers in addition to the amount of investment charge [$50,000 to $60,000]by way of Administrative Fees. Their Attorneys charge $15,000 to $20,000 towards their fees.Filing fees for such Petitions are US $3675. All this amount paid as Fees, are not refundable.
Investment should be at risk. Thus Regional Centers cannot give any assurance of return of investment. This makes it necessary to conduct “Due Diligence” of the Regional Center prior to making the investment.
It is advisable to make investment in a Regional Center rather than to invest in a NCE and undertake the obligation of employing 10 Americans full time and conducting the Business by one’s ownself. This EB-5 Basic Program ultimately proves to be more costly than EB-5 Pilot Program.
Since long USA Govt. is considering raising the amount of investment as well as making the rules and regulations more strict. Soon the amount of investment may be increased and rules and regulations made stringent. Ofcourse they would be for the benefit of the investors.
Every investor before making an investment in a Regional Center must carry out “Due Diligence” of the Regional Center through an experienced Advocate. There are more than 100 things to bechecked to find out whether a Regional Center is worth investing or not. No one can give any guarantee. Advocates too cannot give any guarantee of a Regional Center even after conducting Due Diligence. But atleast they would be able to tell you that this particular Regional Center has complied with all the legalities and it’s promoters are reputed, well versed in Business and the Business which it carries on is profitable. With this assurances the risk will be minimum.
If you are carried away by the fact that the Regional Center is recommended by your relatives or friends or it belongs to your relative or people from your community than you may have to repent in future.