If you’re thinking about investing in the U.S., you may be wondering how much it will cost you. The minimum investment level for an EB-5 visa is $500,000, and administrative fees may vary. You should also pay attention to job creation criteria, as well as legal advice. The costs of immigration can be quite expensive if you choose to invest through a regional center. If you’re planning to invest directly, however, your costs will be much lower.
EB-5 visa minimum investment level is $500,000
After the recent court decision Behring Regional Center LLC v. Chad Wolf et al, the minimum investment level for EB-5 visas has changed. No longer must investors invest more than $500,000 in an EB-5 project to qualify, but the project must be located in a Targeted Employment Area. The court ruling has also eliminated the requirement to invest more than $500,000 in the project.
The EB-5 program has been on a roller coaster ride for the last several years. In November 2018, USCIS changed the minimum investment level to $900,000, and eventually $1.8 million. The increase was challenged in federal court, and the lower minimum investment level was reinstated. In June, the US Senate rejected a proposal to extend the program beyond June 30th, 2021, citing the court’s decision.
Administrative fees for regional center EB-5 investments
The USCIS is enforcing new regulations governing the fees charged by regional centers for EB-5 investments. These regulations mandate that the centers maintain EB-5 investor capital contributions in insured separate accounts and retain a third-party fund administrator to ensure that all monies go to job-creating activities. Failure to comply with these guidelines can result in stiff penalties for the regional centers. In order to avoid the potential for misunderstanding and legal disputes, these organizations should disclose their fees to investors in the first place.
The EB-5 Program was created by Congress to stimulate the U.S. economy through foreign investment and job creation. Under the program, foreign investors can apply for a green card by investing up to $500,000 in a commercial enterprise. These investments must create at least ten jobs. Fortunately, the vast majority of projects meet this requirement. In fact, the goal of the program was to encourage private sector investment in rural areas that are plagued by poverty and underdeveloped infrastructure.
Job creation criteria for direct EB-5 investments
If your project is associated with a regional center, the USCIS will relax the job creation criteria. In a regional center context, the number of jobs may include indirect jobs, as long as they are based on a reasonable economic methodology. In a non-regional center context, however, the number of jobs must be actual W-2 positions. If your project involves the purchase of a troubled business, you may qualify for credit for jobs that are preserved or created, but only if the number of jobs at pre-investment levels is high enough to allocate 10 full-time positions to each investor.
In addition to creating full-time positions, EB-5 investors must also create jobs for U.S. citizens, permanent residents, and other employment-authorized immigrants. Qualifying employees cannot be the investor, his spouse, or children. Moreover, the jobs must be in the United States. In addition to full-time positions, a new enterprise must hire at least ten qualified employees to qualify.
Legal advice for direct EB-5 investors
The path to permanent U.S. residency is not an easy one. For the most part, you will be interacting with a personal U.S. investment immigration attorney for the duration of the entire application process. In addition to your own legal team, you will need a business and corporate attorney, if you choose to invest through a direct EB-5 visa. The additional legal fees will be borne by you.
When looking for the best deal, you can choose to invest in an existing business or create your own. However, if you invest outside of the TEA, you will have to make a higher capital investment. You will also need to demonstrate that you will create at least 10 new jobs in the U.S., as well as have a direct role in the company. As a result, you must carefully research your investment before investing.