EB5 question

[Jorge]

Hi everyone, I have a question about the EB5 visa, something I havent been able to get a straight answer about... If I invest my money for an EB5 visa - is this for a set time only? (will I ever get this money back?) :confused:

I realise that if the company goes bankrupt or anything then i will lose my money, but is the EB5 visa really just selling green cards for $500K - £1M ? or will the money be returned to you after a set time? I would be grateful for any advice! :)

[kirtida8]

Hi Jorge,

There are 2 distinct differences between the EB-5 visas.

1- $500000 investment in a regional center - the funds do have to be invested until you get your unconditional green card. You do get a percentage income during this period, and when you want to get your funds back, you should get your full $500000 back - but I think they need to re-sell the investment to someone else.
2- The $1m investment is one that you are actively invested in - so it is down to you whether the business succeeds or fails. This usually gives you an unconditional green card quicker, and obviously when you sell your business you recoup your investment or not depending on the businesses success.

I am sure that Peter Gold will have further advice for you. This is just my interpretation of how the visa works. Always seek legal advice for an immigration attorney who specializes in this type of visa. Get recommendations if you can.

[JulieC]

If you are looking at regional centres rather than EB5 businesses some have defined exit strategies, some dont. Jay Peak eventually gives you a condo you can sell, Philadelphia I am pretty sure has a defined exit strategy after 5 years, others such as Seattle are long term investments and you take the income until such a time as the investors decide to realise the asset

[Margrit]

Philadelphia seems to have a quite reliable exit strategy, because the loans have to be re-paid in a relatively short period of time by the borrowers. While the investment is relatively secure (only companies with serious assets qualify for the low interest loans), expect very little or no interest.

[Susie]

Philadelphia seems to have a quite reliable exit strategy, because the loans have to be re-paid in a relatively short period of time by the borrowers. While the investment is relatively secure (only companies with serious assets qualify for the low interest loans), expect very little or no interest.

Thats a b-mmer ! thought I could become a millionare, LOL

[peter gold]

If you are looking at regional centres rather than EB5 businesses some have defined exit strategies, some dont. Jay Peak eventually gives you a condo you can sell, Philadelphia I am pretty sure has a defined exit strategy after 5 years, others such as Seattle are long term investments and you take the income until such a time as the investors decide to realise the asset
Julie has it 100% right yuo have to examine each invesment carefuly for the exit strategy.
Below is an article I posted.

I have included my opinion for what it is worth and that is use it for the $1 million investment to expand existing or buy new business but think very carefully about the $500,000 investment.
The EB5 category requires an investment of $500,000 to $1,000,000 in a new commercial enterprise that will result in a benefit for the US economy and produce ten full time jobs for workers not related to the EB5 petitioner.
There are currently 10,000 EB5 green cards available annually.
The first route is for applicants with net assets of over US $1,000,000. The applicant and dependant family get a full unrestricted green card and are free to invest anywhere or in any business in the US so long as the company employs more than 10 legal employees.(buying an existing business or expanding an existing business is permissible in some instances).Family members of the investor cannot be included in this number and non-immigrants are also excluded. Employees must not be independent contractors and e must provide services or labor for the business, receiving wages directly from the business. Positions created must be full time and must constitute a minimum of 35 hours per week. However, the 10 positions required do not have to be created immediately and may be projected employment opportunities, so long as they are realistically incorporated into a comprehensive business plan and will be filled accordingly. Buying an existing business or expanding an existing business is permissible in some instances.
The second route (5000 visas ) is for applicants who can prove that they have invested at least US$ 500,000 in property approved by the US Citizenship and Immigration Service CIS -designated Regional Center (in a “targeted business” or “targeted employment area”). Business people as well as persons without a business background may qualify under this program. Basically, capital is the important criteria. Once the EB5 petition is approved, the investor becomes a conditional resident for two years and once the conditions are removed, a permanent resident. Conditional permanent resident status based on EB5 eligibility is granted for two years, to the visa applicant either alone or coming with their spouse and unmarried children They must demonstrate this investment will benefit the United States economy and create the requisite number of full-time jobs (10) for qualified persons within the United States. “Targeted business” is one that has been in existence for at least 2 years and that has lost 20% of its net worth over the past 12 to 24 months, and a “targeted employment area” is an area which has experienced unemployment of at least 150% of the national average rate or a rural area as designated by the Office of Management and Budget.
One such investment for $500,000 which has proved popular is real-estate projects located near 'downtown' Seattle. This part of town used to have an industrial character which is still visible today. As the 'city center' expanded and the demand for office buildings, shops, restaurants and housing increased, it gradually encompassed this area as well. As the area has a maintenance backlog and the unemployment rate is more than 50% above national average, the government designated this area for 'investor immigrants'. This means that if you invest in it ,you will get a conditional two year Green Card.
IMHO I would not invest $500,000 in such a speculative investment, in a targeted area and run down business just for the reward of a conditional green card. This is like buying a run down tech stock in the hope on an upward swing of investment it will turn good.
Other investments are ski mountains in Vermont, potato farming in Idaho.
The whole scheme is being reviewed in 2008, and last time this happened it was scrapped
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[Kriz1]

The Cape is a targeted employment area..people have got greencards investing here...mostly hotels and B&Bs...tea rooms etc...its not that much of a dump..its the kind of place I'd look into if i were going that route...one lot of Brits did leave and sale up...but they just wanted to go home after being in the USA for 20 years on and off...