For many international investors, the United States offers a wide range of unique and potentially lucrative investment opportunities. Utilizing the EB-5 Immigrant investor program offers the added benefit of providing permanent residency status (green cards) for the investor and the investor's immediate family (spouses and unmarried children under the age of 21).
The EB-5 program was created by the United States Congress in 1990 to "stimulate the U.S. economy through job creation and capital investment by foreign investors." To obtain EB-5 status, an investor must invest at least $1 million in a new commercial enterprise and must create or preserve at least 10 full-time jobs for qualifying U.S. workers. In certain rural or underdeveloped areas known as 'targeted employment areas', a minimum investment of $500,000 may be sufficient to qualify for EB-5 status.
Regional Centers
Certain EB-5 visas are set aside each year for foreign investors who invest in designated Regional Centers. A Regional Center is any economic entity, public or private, which is involved in the promotion of economic growth, improved regional productivity, job creation and increased domestic capital investment. Regional Centers are approved and designated as such by the U.S. government.
In general, Regional Centers are investment companies created to solicit investors for the purposes of developing commercial properties. Common examples of Regional Center investment activities include; shopping malls, business parks, and warehouses. Regional Centers are given approval by the U.S. government based on the government's assessment that the Regional Center's activities have the potential to improve certain areas of the U.S. and it's economy.
The primary benefit of obtaining EB-5 status through a Regional Center is that the investor is freed from having to develop an enterprise and the day-to-day duties of running that enterprise. In essence, a Regional Center investor is a silent investor who entrusts his or her money to others. While many Regional Centers have highly successful track records, an investor who wishes to have control over their investment and the enterprise probably should not invest in a Regional Center.
There are many qualified regional centers in a variety of geographical and industry areas throughout the United States. Not all Regional Centers may be appropriate for all investors. It is important to understand the risks and potential benefits based on the individual investor's abilities and needs. Our attorneys can help you find the regional center that is best suited to your needs.
Job Creation Requirements
One of the primary requirements of EB-5 status is that the investment leads to the creation or preservation of at least 10 full-time jobs for qualified U.S. employees, generally within 2 years of enterprise establishment. These jobs can be either 'direct' or 'indirect' jobs.
- Direct jobs are actual, identifiable jobs for qualified employees located within the commercial enterprise into which the EB-5 investor has directly invested his or her capital.
- Indirect jobs are those jobs shown to have been created collaterally or as a result of capital invested in a commercial enterprise affiliated with a Regional Center by an EB-5 investor. A foreign investor may only use the indirect job calculation if affiliated with a Regional Center.
Note that investors may only be credited with preserving existing jobs if the investment is for the purposes of saving an existing troubled business.
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The Law Offices of Daria S. Brovchenko are located in San Diego, CA. We represent clients throughout Southern California including, San Diego, Los Angeles, Poway, Vista, Chula Vista, El Cajon, Coronado, La Jolla, Pacific Beach, Oceanside, Carlsbad, Encinitas, Escondido, Rancho Bernardo, Del Mar, Solana Beach, Scripps Ranch, La Mesa, Lakeside, Eastlake, Bonita, Anaheim, Santa Ana, Newport Beach, San Diego County, Orange County and Riverside County. We also represent clients globally, including Russia, China, Italy, Japan, Brazil and Mexico.