Green Card for Investors

By Reuben S. Seguritan

July 15, 2009

The United States Citizenship and Immigration Services (USCIS) has recently clarified certain issues in the adjudication of applications under the employment-based Immigrant Investor Program (EB-5).  The new guidance memo relates to the timing of job creation and the meaning of full-time jobs.

 

The EB-5 is a fast route to a green card for foreign nationals and their dependents, who are willing to invest substantial amounts in the U.S.

 

A foreign national is eligible to file for a green card under this category if he/she has invested or actively in the process of investing the required amount of capital into a new commercial enterprise.  The said investment must benefit the U.S. economy and create full-time jobs.

 

The investor must create an original business or purchase an existing business and restructure or reorganize it so that a new enterprise evolves or he/she may expand an existing venture.

 

The investment must be at least $1,000,000.00 or $500,000.00 if it is located in a designated rural area or a targeted employment area where the unemployment rate is 150% of the national average.

 

At least ten (10) full-time jobs must be created.  If the investment is made in a troubled business which has existed for at least two (2) years and had lost 20% of its net worth, the number of employers existing before the investor took over must at least be maintained.

 

Another option under the EB-5 category is to invest in a regional center designated by the USCIS.  A regional center is an entity that focuses on specific geographic areas and seeks to promote economic growth.  The capital investment is about $500,000 or higher.  This is a pilot program created in 1993 and which has been extended several times.

 

The current program is set to expire on September 30, 2009 but a bill to extend it is currently pending in Congress.  There are 45 designated regional centers at present.

 

About 10,000 visa numbers are allocated annually to the EB-5 category with 3,000 going to investors in rural or high unemployment areas and 3,000 reserved for investors in regional centers.

 

The immigration process under this category starts with the filing of Form I-526, Immigrant Petition by Alien Enterpreneur.  The petition must be supported by documents establishing the new business, investing the required capital, demonstrating that the capital came from a lawful source and creating the required full-time jobs.

 

The required number of jobs must be created by the end of two years that starts six months after the adjudication of the Form I-526.  The USCIS will accept certain economic models as proof of job creation and amount of capital needed.

 

Approval of the Form I-526 entitles the investor and his/her dependents to a conditional green card.  To remove the condition, the investor must file Form I-829 Petition to Remove Condition within 90 days before the second anniversary of the investor’s admission as conditional resident.