Our last article shared an accurate status of the EB-5 Immigrant Investment Visa, explaining that, while much of the news reported about the program sounds bad, that is not entirely the case. Sometimes, wrong stories just get more press. Our previous article focused on the realities of pending EB-5 legislation. Be sure to read it and understand that bills pending bills in Congress does not mean that any changes will happen.
Let’s deal with the “what is” instead of the “what ifs.”
#1 - Direct Investment
The direct investment option was and still is the fundamental underpinning of the EB-5 visa program. The direct investment option puts the investor in much closer relationship to his investment. With the direct investment option, the investor may:
- Create his own new business.
- Invest in an existing business.
- Invest in an existing, troubled business to help it recover and save jobs.
- Purchase a franchise.
If an EB-5 petitioner is willing to fund a project in a rural location or a Targeted Employment Area that is based solely on its existing high unemployment rate, the investor:
- Is not dependent upon political redistricting to create a previously non-existent TEA to substantiate a multi-million-dollar project.
- Is not dependent on the actions of a multitude of individuals and factions over which he has little or no influence or control.
A Direct Investor puts some skin in the game. Although the investment must still be “at risk,” the investor may put himself (or herself) in a position to be able to mitigate the risk by participation in the actual management of the venture.
The Direct Investor must still create (or, in the case of a struggling business, save) 10 jobs for American workers, but they do not have to be created until a year and a half after their I-526 application has been approved.
#2 – Alternative Entry Options
We have mentioned these in previous articles, but a summary here is worthwhile.
The interested immigrant may pursue a different visa status. Some Chinese and Russian candidate may be eligible to enter the U.S. through the EB-1C, EB-2, EB-3, and L-1 Visas options. Please click on the links to read the articles for more in-depth information to help determine if any of these paths are potential options for you and your family.
And remember, the United States is not anti-immigration. America is a country built on immigration and built by immigrants. The current administration is focused on growing the U.S. economy. They know that cannot be done by keeping immigrants out, but by attracting the right immigrants so that they, too, can prosper and enjoy the land of the free and the home of the brave.