About United States America

The United States of America (USA), commonly known as the United States (US or U.S.) or America, is a country mostly located in central North America, between Canada and Mexico. It consists of 50 states, a federal district, five major self-governing territories, and various possessions. At 3.8 million square miles (9.8 million square kilometers), it is the world's third- or fourth-largest country by total area. With a population of over 328 million, it is the third most populous country in the world. The federal capital is Washington, D.C., and the most populous city is New York City.

The United States is a federal republic and a representative democracy with three separate branches of government, including a bicameral legislature. It is a founding member of the United Nations, World Bank, International Monetary Fund, Organization of American States (OAS), NATO, and other international organizations. It is a permanent member of the United Nations Security Council. The U.S. ranks high in international measures of economic freedom, government corruption, quality of life, and quality of higher education. Despite income and wealth disparities, the United States continues to rank high in measures of socioeconomic performance. It is one of the most racially and ethnically diverse nations, and its population has been shaped through centuries of immigration.

A highly developed country, the United States accounts for approximately a quarter of global gross domestic product (GDP) and is the world's largest economy by nominal GDP. By value, the United States is the world's largest importer and the second-largest exporter of goods. Although its population is only 4.3% of the world total, it holds 29.4% of the total wealth in the world, the largest share held by any country. Making up more than a third of global military spending, it is the foremost military power in the world, and is a leading political, cultural, and scientific force internationally.

The US EB-5 Immigrant Investor Program

For those w ho wish to acquire permanent resident (‘green card’) status, the US EB-5 Immigrant Investor Program is the most efficient way to acquire such status. Since 1990 when congress created this program, each year, the USA government allocates a substantial number of visas for individuals who wish to make a significant investment into the country. Under this program, individuals and their immediate family members can become permanent residents of the USA within a short period of time.

The US EB-5 Immigrant Investor Program requires that a foreign individual invests USD 1.8 million or USD 900,000 (if the investment is made in a rural area or an area with high unemployment) into a new commercial enterprise and creates 10 new full-time jobs. Funds must stay invested until permanent resident status is granted (usually about four years).

Regional Center

A Regional Center (“RC”) is an economic unit, public or private, that promotes economic growth, regional productivity, job creation, and increased domestic capital investment. Regional Centers are designated by USCIS. USCIS is entitled to terminate a Regional Center in case the RC is no longer promoting economic growth in USA. As of September 10, 2018, there were 886 designated Regional Centers in USA.

Targeted Employment Area

Targeted Employment Area (“TEA”) is defined as a rural area or an area experiencing an unemployment rate of at least 150% above the national employment average. The Department of Homeland and Security (“DHS”) is the authority in charge of the designation of geographic zones as TEA. Having an EB-5 project located in a TEA allows to reduce the minimum EB-5 investment amount by 50% In a TEA, the EB-5 minimum investment is USD 900,000 instead (50% less than the EB-5 standard amount of USD 1,800,000).

Regional Center Program

A certain number of visas are set aside for individuals who apply under the Regional Center Program. There are a number of designated ‘regional centers’ in the USA, each with its own distinct industry and geographic focus. Under this program, applicants usually invest USD 900,000 into one of the designated regional center projects, thereby becoming a limited partner in that regional center's new enterprise.

The main benefit of this option is that investors may rely on indirect job creation rather than directly hiring 10 employees. Moreover, the day-to-day management of the investment is facilitated by the regional centers so that the applicant is free to live and work anywhere in the USA.

There are no requirements as to age, language, or past business experience in order to qualify. Applicants, however, must have a net worth in excess of USD 1 million and proof must be provided that their funds come from legal sources. Furthermore, they must remain in the USA for at least 180 days each year until unconditional green card status is granted if they wish to apply for USA citizenship.

Investment Options

The USA EB-5 Immigrant Investor Program comprises two investment options.

Advantages of the USA EB-5 Immigrant Investor Program

Known the world over as the land of opportunity, the United States of America boasts a rich and diverse culture, one of the strongest currencies in the world, and one of the most sought-after passports on the planet. Through the USA EB-5 Immigrant Investor Program, investors can enjoy a host of exclusive benefits:

• No language skills required.

• No minimum education required.

• No business or managerial experience required.

• Investment capital can come from a gift, inheritance, business ownership or any other lawful activity.

• No obligation to live in the area of investment.

• The opportunity to live, work and study anywhere in the U.S. and benefit from lower tuition fees.

• Inclusion of spouse and dependent children under the age of 21.

Qualificaations

To qualify for the program applicants must fulfill one of the investment options below in addition to meeting the following criteria:

• Be at least 21 years of age.

• Show legal source of assets and funds.

• No criminal record.

Process

1. Submit the completed application forms and required documents;

2. USCIS will grant to successful applicants and dependents a 2-year conditional Green Card;

3. Before the 2nd anniversary of the conditional Green Card, the candidate must file a petition for removal of the condition set on the conditional Green Card;

4. The application processing time varies according to the investor’s country of chargeability;

5. Countries experiencing high EB-5 Green Cards demand are subject to a backlog delaying the application’s processing time;

Citizenship Requirements

There are four ways to acquire USA citizenship: by birth in the USA or in USA territories (jus soli), by birth outside the USA to USA parents, and by naturalization. After five years of legal residence from the date of receipt of the conditional green card, it is possible to acquire USA citizenship and to obtain a passport, the holder can apply for naturalization upon meeting the following requirements:

• Be 18 years or older.

• Have lived within the state, or USCIS district with jurisdiction over the place of residence, for at least three months prior to the application.

• Have continuous residence in the U.S. as a Green Card holder for at least five years immediately preceding the application.

• Be physically present in the U.S. for at least 30 months out of the five years (60 months) immediately preceding the application.

• Reside continuously within the U.S. from the date of application for naturalization up to the time of naturalization.

• Be able to read, write and speak English, and have knowledge and an understanding of U.S. history and government (civics).

• Be of good moral character in keeping with the principles of the Constitution of the United States, and well-disposed to the good order and happiness of the United States during all relevant periods under the law.

FAQ About EB-5

WHAT IS USCIS?

The United States Citizenship and Immigration Services (“USCIS”) is the Government agency that oversees immigration applications to the United States. USCIS administers the EB-5 Immigrant Investor Program and is the competent authority for the adjudication of I-526 petitions.

WHAT IS AN I-526 PETITION/ I-526 APPROVAL?

• The I-526 petition is the name of the form used to file the application of an investor who wishes to immigrate to USA via the EB-5 Immigrant Investor Program.

• The I-526 form contains all the details of the EB-5 investment and the project in which the investor is investing his/ her funds in.

• The I-526 approval means that USCIS has reviewed and approved the investor’s EB-5 application.

WHAT IS AN I-829 PETITION/ I-829 APPROVAL

• The I-829 petition is the name of the form used to file the application of an approved EB-5 investor who holds a Conditional Green Card.

• Before the 2nd anniversary of the Conditional Green Card’s issuance date, the investor has to file the I-829 petition to remove the conditions on his permanent resident status.

• To remove the conditions, the investor will have to prove that his/ her EB-5 investment has allowed the creation of 10 full-time jobs in the EB-5 project.

• The I-829 approval means that USCIS has reviewed and approved the investor’s removal of conditions application.

WHAT IS A REGIONAL CENTER?

• A Regional Center (“RC”) is an economic unit, public or private, that promotes economic growth, regional productivity, job creation, and increased domestic capital investment.

• Regional Centers are designated by USCIS.

• USCIS is entitled to terminate a Regional Center in case the RC is no longer promoting economic growth in USA.

• As of September 10, 2018, there were 886 designated Regional Centers in USA.

WHAT TEA MEANS?

Targeted Employment Area (“TEA”) is defined as a rural area or an area experiencing an unemployment rate of at least 150% above the national employment average. The Department of Homeland and Security (“DHS”) is the authority in charge of the designation of geographic zones as TEA. Having an EB-5 project located in a TEA allows to reduce the minimum EB-5 investment amount by 50%. In a TEA, the EB-5 minimum investment is USD 900,000 instead (50% less than the EB-5 standard amount of USD 1,800,000).

DIRECT EB-5 INVESTMENT VS REGIONAL CENTER INVESTMENT:

EB-5 Direct investment:

A direct investment (in other words, not via a Regional Center) requires the investor to control and manage the EB-5 project. As part of the requirements to manage the project, the investor will be in charge of the creation of 10 full-time direct jobs for qualified US workers. In such case, it is an active investment.

Regional Center:

If the client invests via a Regional Center, he/ she does not have to get involved in the management, since the Regional Center will be managing the project. In such case, it is a passive investment.

HOW TO CHOOSE A SECURED EB-5 PROJECT?

Selecting an EB-5 project requires a strict Due Diligence Phase in order to carefully assess the following:

• Total amount of investment vs total amount of EB-5 investment;

• Expenses and costs in connection with the project’s construction;

• Financial forecasts and project’s economic analysis;

• Number of EB-5 investors required for the EB-5 raise vs job creation calculation and cushion;

• Investment holding period and exit strategy (repayment of the EB-5 investment and interests);

• USCIS I-924 approval (designation of the Regional Center) and existing I-526 approvals;

• Country of origin of the EB-5 investors (i.e. backlog and retrogression for investors from Mainland China, Vietnam, and other countries over quota);

• Project’s on-site visit and meetings with project’s representatives.

HOW TO PROVE THE SOURCE OF FUNDS OF THE EB-5 INVESTMENT?

The Source Of Funds (“SOF”) of the EB-5 investment is the key part of the I-526 petition. Evidencing the investor’s SOF will require a full review and understanding of the investor’s assets.

It will require analyzing notably:

• Income from salaries, bonuses;

• Income from real estate rentals;

• Client shareholding, profits of his/ her business (companies, household) and dividends distributed;

• Assets transfer, such as real estate transactions, equity, stocks;

• Loans and mortgages;

• Gifts from relatives;

• Insurance and allowances.

WHAT HAPPENS IF THE EB-5 PROJECT FILES FOR BANKRUPTCY?

From an immigration standpoint, the investor is protected as long as the Job Creation requirement is satisfied. If the project has created 10 full-time jobs for U.S. workers, the investor will be in position to remove the conditions set on his/her Green Card and obtain the right to live, work, study in USA for life. From a business standpoint, if the project goes bankrupt, the investor will not be in position to get back the EB-5 investment.

That is the reason why THV does not agree to file the I-526 petitions of clients who choose their own EB-5 project. THV will assist clients for the processing of their I-526 petitions only if the clients invest in a project on which HLG has conducted the Due Diligence Phase mentioned at Question 6 above.

CONDITIONAL GREEN CARD VS UNCONDITIONAL GREEN CARD?

Successful I-526 petitioners will have all the same rights as a Permanent Resident (Unconditional Green Card holder) while holding the Conditional Green Card. However, the Conditional Green Card is only valid for 2 years. The I-829 petition will allow the investor to obtain an Unconditional Green Card and the right to live, work, study in the USA for life.

PERMANENT RESIDENCE/ GREEN CARD VS CITIZENSHIP/ U.S. PASSPORT?

While both Green Card holders and U.S. citizens have the right to live, study, work in USA indefinitely, some of the differences between the 2 statuses are listed below:

• The Green Card does not provide free mobility outside USA;

• To become citizen, a Green Card holder will have to live in USA for 5 years prior to be entitled to file for citizenship via naturalization;

• Green Card holders are not allowed to vote and run for U.S. elections;

• U.S. citizens can live outside USA for an unlimited period of time while Green Card holders must file for Re-Entry Permits;

• US citizens can sponsor immediate relatives or family members such as parents, married children, and siblings;

• Permanent residents can lose their immigration status if they commit crimes.

HOW CAN GREEN CARD HOLDERS STAY OUTSIDE USA FOR MORE THAN 6 MONTHS WITHOUT LOSING THEIR GREEN CARDS?

Green Card holders may apply for Re-Entry Permits to be entitled to stay outside the United States for more than 6 months per year.

I-526 PETITION: WHO CAN BE THE PRINCIPAL APPLICANT?

Any person aged 21 years or over can be the Principal Applicant (“PA”). For married couple, the choice of the PA will be made based on the spouse who plans to stay longer and spend most of his/ her time in the U.S. In case one of the spouses needs to travel back and forth between USA and his/ her country of origin, HLG will advise him/ her to be Dependent Spouse.

CAN MY ADOPTED CHILD BE INCLUDED AS A DEPENDENT CHILD IN MY I-526 PETITION?

Yes. In such case, the documents evidencing the adoption and custody over the child must be submitted as supporting documents of the I-526 Petition.

AFTER RECEIVING MY GREEN CARD, CAN I SPONSOR MY PARENTS?

No. Only U.S. citizens are entitled to file Sponsorship applications for their parents.