US EB-5 Investor Program

The US EB-5 Investor Program allows an alien investor, his spouse and his unmarried children under 21 to become US permanent residents, the quota being up to 10,000 per year. The program has two streams - the regular program and the regional center program. There are three basic requirements for the regular program:

• Create an entirely new business, form a new business by restructuring or reorganizing an old business, or purchase or expand an existing business;

• Invest US$1 million lawfully obtained funds;

• Directly create 10 full-time jobs for US workers, not including the investor, his spouse and his children, within two years of investment.

An EB-5 Regional Center is an approved agency or organization aiming to create jobs in its surrounding area. An EB-5 Regional Center may have one or more development projects. An alient investor may invest in a project with a regional center and pay a certain amount as administrative fee. The advantages of investing in a regional center includes:

• The projects are larger and multiple alien investors can pool their capital. In some regional centers, you may invest US$500,000 rather than US$1 million;

• While each alien investor still needs to create 10 full-time jobs for US workers, both direct and indirect jobs (such as jobs created by suppliers) are counted toward this requirement;

• The investor is less involved in day-to-day business management.

An alien investor must meet the following financial criteria:

• A net worth of US$1 million for an individual or a married couple; or

• A minimum annual income of US$200,000 for an individual, or a minimum joint annual income of US$300,000 for a couple, in each of the two previous years; and

• A comparable level of future income and assets to be reasonably expected.

The EB-5 Investor Program application process has three steps:

• Apply to be approved as an alien entrepreneur (Form I-526). You must submit all required supporting documents including evidence that you have already made an investment in a qualifying EB-5 project;

• Apply for a immigrant visa (Form DS-260). You and your spouse and minor children must apply for immigrant visas if you are residing outside the US or apply to adjust your status (Form I-485) if you are already in the US. Once approved, you become conditional permanent residents in the US for two years;

• Apply to remove conditions (Form I-829). This form must be filed 90 days before the second anniversary of your conditional permanent resident grant date. Once approved, you become a full US permanent resident.

The principle of the investment made to a regional center may be returned in 5 years. A profit is possilble. However, the applicable US law prohits any guarantee on the investment.

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