Real Estate Investor Magazine South Africa October 2018 | Page 56

IMMIGRATION
The Great American dream EB5
Business Immigration to the US
BY EDITORIAL
T
hough the American Dream has somewhat lost its lus-
ter, the number of people wishing to move to the United
States is not decreasing, and the green card continues to
be a cherished dream for many.
The Trump administration is serious about reducing legal
immigration in the coming years. It is also planned to stop Green
Card lottery. At the same time, the government is still very
supportive of those who invest in the US economy. Therefore,
wealthy people wishing to grow their business in the United States
will find the option of obtaining investor visa more attractive. The
benefits of this option include the applicant’s ability to bring his/
her spouse and children to the United States as well.
These three visa programs are most popular among the
investors: EB-5, L1 and E-2. In this article we will highlight the
conditions, advantages and disadvantages of each of the program.
The EB-5 visa as a direct way to get a green card 
The  EB-5 Visa Program  was launched in 1990 when the
Congress of the United States set an objective of stimulating the
US economy, attracting private foreign capital, creating additional
jobs. The government only opens about 10,000 EB-5 spots for
applicants per year, while the actual number of applications is
usually much higher.
Requirements to obtain the EB-5 visa 
To qualify for the EB-5 visa an applicant is required to invest
$1million or $500,000 (depending on the region) in the
development of a US company. The lower cost is available to
those investors who decided to invest in companies located in
high unemployment regions or in rural areas called Targeted
Employment Areas.
The program provides the following options of
participation:
• Creation of a new commercial enterprise.
• Investment in so-called regional centers in Targeted
Employment Areas to attract investment in various projects.
• Expansion of the existing business by at least 140% with
respective increase in the level of employment.
Supporting the existing businesses in crisis (which have lost
20% of capital over the past few years).
At the same time the investment schemes that guarantee the
return of funds, such as lending to the existing businesses, are not
allowed. Investments should be subject to risks.
Investments in regional centers are not so profitable, but in a
way more reliable since these companies meet the conditions of
the program without fail. An investor does not need to actively
participate in asset management. Therefore, this option is often
chosen by those who are interested primarily in moving to the
United States.
Applicants are eligible to participate in the program if their
capital exceeds $1 million or an annual income over the past two
years is at least $200,000.  There is an alternative requirement
according to which the annual amount of joint income of the
spouses should not be less than $300,000. According to the
program conditions, the investor must create at least 10 full-
time jobs for US citizens. At the same time, their salary should
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OCTOBER/NOVEMBER 2018 SA Real Estate Investor Magazine
not be lower than the industry average. It is also important that
the capital allocated for investment was fully legal; the income
sources are subject to rigorous due diligence check. Supporting
documents may include certificates on the sale of real estate or
business, gift or inheritance certificates, data on profits from
commercial activities.
For the first two years, the permanent residence is granted.
This status is removed if the enterprise still meets program
requirements, namely the required 10 jobs are maintained. The
same status (first, conditional and then permanent) shall be
granted to investor’s spouse and children younger than 21.
Advantages of EB-5 visa:
• Possibility to get a green card and the right of legal stay and
free travel within in the USA.
• Together with the investor, a green card can also be granted to
a spouse and children under 21 years of age. They are entitled
to stay in the country, and have the right to employment and
education.
• After two years you can be granted the permanent residence,
and after another three years, you can apply for the US
citizenship. This is relevant both for the investor himself and
for his family members.
• Applicants from all countries are eligible, there are no
requirements concerning work experience, education, age,
knowledge of the English language or position in the
company.
• There are no restrictions to the duration of the status.
• You can choose any industry and any region of the United
States for investment.
The disadvantages of the EB-5 visa include:
•   A fairly large amount of minimum investment.
•     Low profitability of investments through the regional
center. Although regional centers should be approved for
participation in the program, this does not guarantee that the
investment will bring income.
•   The need to prove the legality of the source of investment
funds.
•   Rather strict requirements to physical stay in the US: not less
than 6 months a year. If you plan to travel frequently abroad,
you should get a special Re-entry Permit.
•   Relatively long processing time. Normally, it takes about a
year to get a visa.
Important note: since 2016, the adjustment of the conditions
for this type of visa has been discussed. It is proposed to increase
the cost of participation in the program from $500,000 to
$800,000 and from $1 million to $1.2 million, respectively.
However, so far it has been decided to keep the terms of the
program unchanged until December 2018.
SOURCE
Migronis-citizenship.com