EB-5 U.S. visa: how the program works and conditions for obtaining it

FAQ: How to obtain a U.S. investment visa under the EB-5 program

What is the principle of the program?

A foreign investor has the opportunity to get a green card by making an investment in a commercial project in the amount of 900 thousand dollars. Not only the applicant, but also his/her family members: spouse, children under 21 years of age.

The program was launched in 1990. Its purpose is to stimulate the development of the American economy. Attracted investments improve the infrastructure of the states, create jobs. In 1992, the U.S. Congress launched a pilot “Regional Center Program”.

How much does an EB-5 visa cost?

Previously, the amount was 500 thousand dollars. On November 21, 2019, it was increased to $900,000 for projects of the high unemployment zone. For other projects, the amount is $1.8 million. 

How long does it take for an investor to receive a visa?

The amount of time depends on which country the applicant is a citizen of. For example, because of the extremely high demand for applications, Chinese, Vietnamese and Indians wait very long. For citizens of other countries, the terms vary from 2.5 years to 4 years. In 2020, the United States simplified the procedure for Russian citizens, so Russians can count on a more rapid resolution of the issue.

Who can apply?

There are no special requirements for the applicant. It can be a citizen of any country, of any age, speaking any language. The main thing is to prove that the invested money is earned legally. In addition, the applicant must not have a criminal record. How many visas do the States issue annually? The maximum number of approvals per year is 10,000. Not only applicants but also their family members are taken into account.

Can I use a loan to make an investment?

The only requirement for the funds is that they are legal. You can use credit money, a gift, income from other investments and so on.

Is it possible to return investments?

There is no fixed return on invested money. It all depends on whether the project starts to generate income. In the case of regional projects, much depends on the reliability of the project.

To see statistics on the return on investment, you can contact one of the Regional Centers. The situation is as follows: if you have invested in a reliable project, it will be returned after five to seven years.

How can I make the visa procedure easier by applying to a Regional Center?

An investor has a choice: to invest funds himself or to use the services of the Regional Center.

The Regional Center is a commercial company that is licensed by the USCIS. The purpose of this organization is to help investors pass through the stages of obtaining a visa faster.

Representatives of the company select an object for the investor, as well as control the compliance of the procedure with all the norms of the law. In most cases, candidates use the services of Regional Centers. This is so because:

• the organization facilitates the fulfillment of job creation requirements;
• investors who use the services of the Regional Center minimize risk by being offered large, reliable projects.

The future of the EB-5 visa is very uncertain. Analyzing the factors that make this possible.

The EB-5 visa is one of the oldest and most successful visas in the United States, having injected more than $33 billion into the country's economy. Nevertheless, in recent years, its program has been the subject of much criticism from the relevant regulatory agencies. Claims have been made mainly on two fronts. The first is the insufficiently high minimum investment amount, which has not changed for more than a quarter of a century and does not take into account dollar inflation. The second is the abundance of financial fraud related to the work of the Regional Centers (RCs).

The situation has led to a number of changes and additions to the provisions of the EB-5 visa program in mid-2019. Our lawyers, based on the opinion of Ron Klasko, a well-known investment specialist in the United States, analyze where the changes will lead.

Changing the “rules of the game” in the EB-5 program can change a lot of things

Ron Klasko believes that now there is only the beginning of the major shifts that eventually await the popular visa program. And where those shifts will ultimately lead can only be predicted with some degree of certainty. One thing is certain: the EB-5 visa program has never experienced such a massive transformation, and it will never be the same again.

In his blog post, Ron Klasko writes that the expected changes will be both positive and disruptive. It is hard to say now which trend will prove to be overwhelming. At any rate, he identifies 16 important consequences. We will list them now, and then return to their summarizing analysis.

1. The number of visa applications (and, consequently, investors) will decrease.
2. There will be additional difficulties in justifying the source of the declared capital.
3. There will be increased difficulties with currency exports.
4. The share of direct investment bypassing services (DCs) in the EB-5 structure will increase.
5. Each of the Regional Centers will demonstrate greater financial returns.
6. At the same time, the number of RCs will decrease significantly.
7. There will be an abundance of litigation related to the closure of RCs.
8. EB-5 projects will experience a restructuring process.
9. The share of E-2 visas will increase.
10. There will be an emphasis on investments in provincial, rural regions.
11. Urban investment projects will experience a shortage of capital investment.
12. There will be more mandamus complaints (court decisions in investor dispute with RCs).
13. Increase in litigation related to reallocation of finance.
14. Private placement memoranda will be vigorously reviewed.
15. Investor inflows from new, previously largely untapped countries will increase.
16. The program will change again in the not-too-distant future.

How the changes will affect investors

It is obvious that a noticeable increase in the financial resources required for the applicant will reduce the number of those wishing to take advantage of the EB-5 program. And it is not only the size of investments, but also the fact that it will become more difficult to withdraw them from the country of permanent residence. This is especially true for countries with strict financial censorship (China).

Already now for citizens from China, India and Vietnam there have been languishing multi-year queues due to the introduction of quotas for these countries. It is likely that there will be their reorientation to other investor markets (e.g. Europe). We should expect that the palette of potential investors will be enriched with South Africans, Nigerians, Argentines, and natives of Latin America.

Given that the EB-5 visa has become more expensive and the waiting time for quotas has increased, it is reasonable to assume an additional surge of interest in the E-2 visa.

There will be more work for lawyers as well. The visa program has become more stringent in many requirements, which implies longer and more thorough preparatory work on documents. In addition, it will significantly increase the cost of lawyers.

In all likelihood, there will be an increase in the part of investors who will go by way of direct investment through EB-5, ignoring Regional Centers. This option, although it involves a higher level of capital investment, allows the investor to personally manage the operation of his or her business, making it efficient and, as a result, receiving a better financial return.

Regional centers are facing challenging times

We can be sure that the number of RCs will rapidly decrease; probably by many times. This process is already underway. We have already mentioned several reasons why this will happen. It is worth adding that the existing RCs operated essentially as commercial enterprises. But, given the changes in the legislation, they will no longer bring the owners the same profit.

We have the right to expect that, given the long queues of investors and the projected reduction of a large number of centers, an avalanche of lawsuits and proceedings will appear. In addition, many RCs will face financial difficulties due to the inevitable restructuring of a large number of commercial investment projects. Indeed, many projects will now require a smaller number of investors involved, bearing in mind that each of the residents invests significantly more money than it did before.

Instead of concluding, let's turn our attention to item 16 on Ron Klasko's list. He believes that, summarizing all of the above, we should expect strong legislative lobbying to reduce the accepted investment amounts again, perhaps in exchange for some other concessions.

How to make your dreams of moving to the US come true is simple: EB-5 for South Africa

When you are set on moving, the question arises, where would you and your family move to? Which country would be the best? Are you living on an island, living in a cold climate, or are you going to move to a place where the rest of your family can be comfortable? Burning the bridges of your past life and starting over is not an easy thing to do, and it becomes even harder if you need to learn a new language or adapt to other cultures.

We have helped over 300 South African families obtain EB-5 visas and move to the United States. Moving from South Africa to America is by far one of the easiest. In addition to being ingrained in their Western lifestyle, you don't face language barriers or huge culture shocks. Instead of making numerous plans of where you could move to, just make one: contact GARANT.in and find out if you qualify for an EB-5 investment visa.

The EB-5 investment visa provides the best and permanent option for moving to the United States. However, this option is not for everyone, as to qualify, the investor must have the potential to invest at least $900,000 in a specific Targeted Employment Area (TEA) in the US. This is a niche investor program and is best implemented through a professional team. South African investor confidence remains low. We note that it is not only wealthy individuals who are at the peak of their careers or business owners who are looking for security beyond borders; we are seeing an increase in middle-aged families who are looking for a safe environment, career advancement and a better future for their children.

Designed for high net worth individuals and families seeking permanent residency in the U.S. and a Green Card, the EB-5 Investment Visa is a modern approach that empowers smart, motivated individuals to engage in projects that empower U.S. communities while ensuring ownership, security, property rights, and asset protection.

There are no restrictions on where you can live in the US. You also have 160 countries to choose from with free entry when you intend to travel. Whether the investor chooses to study, start a business or even work, they are not restricted in their activities as it works with other US visas. In addition, the EB-5 investor visa guarantees you entry of your family into the United States, including your children at the age of 21.

As an investor, you will be securing your own wealth in the world's leading GDP. The employment rate in America far exceeds that of South Africa. With successful candidates holding a US green card, they can run a business or grow their career quickly. In addition, the U.S. was ranked 6th in the World Bank's Doing Business Report for 2019.

Those who have school-age children or who are ready to attend an institution of higher learning will have access to top-notch schools and universities. For example, Harvard, Massachusetts and Stanford universities are among the top three in the world. Moreover, the investor and his family will have direct access to medical care and healthcare in the country.

Living in the US has serious guarantees for security, wealth, and a high standard and quality of living. We at GARANT.in have mastered the EB-5 investment visa application process and have achieved a 100% success rate. Once you decide to take this important step in your life, we will do our best to save you the hassle and complications and help you make your move simple and smooth.