The EB 5 investment visa program is one of the most flexible visa options that is designed for those who are willing to get a permanent residential visa after meeting EB 5 visa requirements. This program helps foreign investors to invest in any kind of profitable lawful business entities. Let’s take a deep dive on EB-5 visa investment options available for foreign investment:
Create a new business: One of the most common options chosen by several foreign investors is creating a new business. The EB 5 visa requirement program was established after November 29, 1990. Foreign investors are eligible to invest a specific amount after the given date by ensuring that the legal criteria is met. According to the 1998 law of the EB investment, it was important that investors should be available at the time of the foundation of an enterprise, but this created chaos as several organizations were based on the basis of a partnership.
The partnership model concentrates on the establishment of business among two entities; however, it may consist of more than two partners of the enterprise demands it. Due to this, the 1998 precedent such limited partners of an entity were not eligible for the same. After 2002, the law was changed by the Congress granting the authority only to the petitioners that they must show their investment in the required 5B-5 amount.
Here are the basic requirements for creating a new business:
- It is important to invest at least $1,800,000. If the investment is made in a company located in a TEA, the investment amount is lowered to $900,000.
- It is important to provide benefits to the United States economy in the form of goods and/or services.
- It is mandatory to create ten full-time employment positions.
- It is mandatory to be involved in the daily management of the company. Acceptable positions consist of acting as a corporate officer, board member, etc.
Buy an existing business: An investor is allowed to remodel an existing business. However, the United States Citizenship and Immigration Services does not consider it enough for an organization to amend its legal structures.
Troubled Business: As per the current precedent, a troubled business is an enterprise that functions for at least 2 years and has incurred a net loss in its 12 to 24 months on the basis of the date on the Form I-256. The loss must be at least 20 percent of the troubled business entity’s net worth prior to that specific loss. To ensure whether the troubled business has been existence for 2 years, the beneficiaries in interest to the trouble business will be deemed to have been in existence for the same duration of time as the business they succeeded.
Expand an existing business: There are several EB 5 visa investment options available for investors to choose from. The investor can expand its existing business in the form of establishing a new business. In this way, the EB 5 investor is obliged to expand the worth and the number of employees of business by at least 40%. For this program, the requirements are stated as if the investors maximize the number of workers and extend its business, he must need to create more than 10 jobs.
Pool: The investment options offer opportunities to several investors to pool their investment in order to create a single enterprise. All investors must infuse their capital in a way to create at least 10 jobs each. All these jobs generated by the investors and their credit must be distributed to the investors.
