EB5 Investors Magazine "Top 25 Awards Edition" Volume 8 Issue 1 - Page 22

two or three executives. An alternative is that the foreign parent company can purchase the shares of an existing (more than one year) and substantial (operating) U.S. business (the subsidiary). and financially viable according to the business plan and employees have been hired, the visa renewal process is straight forward i.e., need tax returns and additional details about ongoing business operations. COST COMPARISON OF STRATEGIES AND PROCESSING TIMES EB-5 DIRECT INVESTMENT L-1A (Temporary Visa): To Start US$ 150,000 L-1A U.S. Business: New Office – 12 months US$ 1,000,000 The EB-5 category allows a foreign national investor to irrevocably commit their personal funds (e.g., US$ 900,000 if the business is located in a TEA (Target Employment Area) or Rural Area, into a U.S. business that will employ 10 full time employees. The investor will have to commit their funds initially and then file their EB-5 petition with USCIS to obtain conditional permanent residency. If the business is not located in a TEA or Rural Area, then the investment is USD $1.8 million. Professional Fees: In Total (Attorneys, CPAs) US$ 200,000 Investors, if they so choose, can first commit their personal investment funds into an E-2 business, and then invest more funds into the same business i.e., E-2 business to EB-5 business for the U.S. permanent residency visa. Additional Management Operating and Payroll Costs (2 years) US $ 1,500,000 Total 24 Months US$ 2,850,000 L-1A TO EB-1C EB1C (permanent Residency) 24 Months E-2: TREATY INVESTOR NON-IMMIGRANT VISA For the E-2, the foreign national has to be a citizen of a country that has a treaty investor agreement with the U.S. The initial investment might be a minimum USD $100,000 to USD $150,000, for example in an existing or franchised business. The E-2 investor will have to not only spend money on the purchase but continue to generate enough revenue and invest in the U.S. business to cover overhead and operating costs as well as payroll. The E-2 only is a temporary visa for a fixed period, as an example, four or five years, with multiple entries. The E-2 visa may be extended with approval from the U.S. consulate or E-2 status extended with approval from the USCIS. Choosing an E-2 Business, cost is a factor as these are challenges with new and existing offices. The cost of setting up an E-2 business in the first year is substantially less expensive and costly than setting up a new business under the L-1A category. However, the E-2 investment must be substantial and more than marginal so the executive can earn a financially viable living. For example, if an existing business is for sale at US$100,000, an investment of US$ 95,000 will be considered to be a substantial investment. For the E-2 renewal, so long as the business is operating 22 EB5 INVESTORS MAGAZINE COST COMPARISON OF STRATEGIES AND PROCESSING TIMES E-2 TO EB-5 (DIRECT) E-2: 4 Months Plus To Start Entry to the U.S. US$ 150,000 E-2 – EB-5: (Direct) Entry to the U.S. US$ 900,000 Application: 24 – 28 months Professional Fees (Attorney, CPA, Business Plan Writer) Average US$ 100,000 Total 32 Months US$ 1,150,000 Additional Management: Payroll and Operating Costs (5 Years) US $ 2,000,000 Total 60 Months US$ 3,150,000 SECOND CITIZENSHIP: TO BECOME AN E-2 INVESTOR If the foreign national is not a citizen of a E-2 treaty country, then they will have to buy citizenship in a treaty country, usually for a minimum of USD $300,000. This of course will be an additional cost in obtaining a temporary visa to enter the U.S. and direct a U.S. business.