Visa Basics
Unfamiliar with the EB-5 Visa? We’ve compiled a small list of common questions we hear from potential investors concerning EB-5 Visas.
Investors can form a new commercial enterprise, purchase a troubled business or invest in a federally designated Regional Center. Of the three options, investing in a Regional Center allows an investor to take full advantage to satisfy the various EB-5 requirements.
Generally, investors will need $1 million USD, or $500,000 USD in a targeted employment area (TEA), although these are estimates and exceptions may apply.
EB-5 visa investors only need to use their personal funds to immigrate. EB-5 investors do not require a sponsorship from either a family member or employer, not do they need to have any business training, business experience, know the language or meet any age requirements. Investors do not need to be continuously or physically present in the U.S., and can maintain business and professional relations in their home country.
Generally, the time from investment to Green Care receipt is 1.5-2 years.
After you’ve invested in an EB-5 project, an immigration attorney can assemble an I-526 Immigrant Petition by an Alien Entrepreneur. Typically after 16 months your petition will be approved. After the approval, you will have an interview at the U.S. Embassy in your home country (unless you live in the United States).
For a more detailed timeline and explanation of the EB-5 process, we recommend that our clients look over the EB-5 Process page.
Investment Basics
While this section covers some basics about investing, things can vary from project to project. We recommend that clients contact us directly for specific details pertinent to each project.
A Limited Partnership (LP) is a business organization which has one or more General Partners who manage the business and assumes legal debts and obligations. This type of organization also has one or more Limited Partners who are liable only to the extent of their investments, have rights to the Partnership’s cash flow, but are not liable for company obligations.
Yes, the minimum investment required is $500,000 in Target Employment Area and $1,000,000.
The Limited Partner will be allocated 5% of the coupon payment which are paid by the Job Creating Entity. The coupon rate for the targeted bonds is expected to be about 3% although it will be determined at the day of the bond sale. The timing of distribution of Available Cash will be determined by the General Partner in its sole discretion.
On average, Limited Partnership are a five-year term. Once the conditional green card has been approved, investors can no longer withdraw. Once the five-year term has completed, investors may leave the Partnership.
Bond Basics
At AUSA we strive to ensure that our clients possess the knowledge to pursue the right investment to secure their Green Card. Here are some of the basic things our clients should know about EB-5 bonds. Have more questions, or want more details? Contact us
Municipal bonds are bonds issued by local governments, state governments, districts and other entities that serve a civic purpose. They fall into one of two categories: either a general obligation (G.O.) bond or a revenue bond.
When a municipality issues a bond, they are borrowing money to be paid back at a later date. Tax regulations governing municipal bonds generally require all money raised by a bond sale to be spent on on-time capital projects within three to five years of their issuance.
AUSA prefers this type of investment because municipal bonds are paid back with interest and are generally exempt from federal and state income taxes.
Three independent companies issue credit ratings that assess the creditworthiness of both bond issues and their issuers. The three primary bond rating agencies are Standard and Poor’s, Moody’s Investor Services, and Fitch Ratings.
No. The bonds will be held in the name of the Limited Partnership, not the individual investor. Holding the investment in the name of the individual investor would risk the USCIS denying that an actual ‘at-risk’ investment was made.
According to FINRA, the daily dollar volume of bonds traded in the United States is $15.1 billion dollars. The liquidity of the bond market makes selling the Project Bonds each to accomplish, whenever it becomes necessary.