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Tag Archives: EB-5 business visa program

June 21, 2022

The EB-5 visa category is an easy and straight forward option to obtain a Green Card through investment in the United States. The program is designed for foreign nationals who desire to immigrate to the US and start a business or invest in an existing business that contributes to the US economy.

On 15th March, 2022, the US government launched the new EB-5 Reform and Integrity Act 2022.

As a one of the leading Immigration lawyer in India, we have highlighted some of the important new provisions in this new Act.

Reasons for updating the existing Act:

  1.  Preventing frauds
  2. Promoting and reforming foreign capital investment
  3. Creating jobs in American Communities

The Act lists new compliance requirements that have to be adhered to by the following entities:

  1. Regional centers
  2. New commercial enterprises
  3. Job creation entities
  4. Direct and third-party promoters
  5. Migration agents
  6. Companies and professionals involved with regional centers

Salient differences between the old and new Act and regulations:

Job creation

Earlier, each investor had to create 10 jobs irrespective of whether they were direct or indirect jobs. As per the new Act, each investor has to create at least 10 jobs of which 90% can be indirect jobs. If the construction work lasts for less than 2 years, only 75% of the jobs are accepted as indirect.

Regional Centre (RC) approval

As per the old Act, RC approval by the state government was mandatory but not by USCIS. However, the new Act stipulates that RCs will now require mandatory approval by the USCIS (United States Citizenship and Immigration Services). As an associate of US Immigration attorney in India, our law firm can assist in obtaining RC approval for our clients.

EB-5 business plan

In the old Act, it was left up to the discretion of regional centers whether they wanted to get approval of their business plan before filing an EB-5 petition. Now, investors can file for EB-5 petition only after receiving approval of their RC’s business plan. As an associate of US Immigration lawyer in India, our law firm can assist in obtaining business plan approval for our clients.

Failure to comply with the Act and regulations

Earlier, USCIS could not take any action in case any RC failed to comply with the Act and its regulations. Now, USCIS can suspend or terminate the RC in case of non-compliance.

Investment

Investors had to invest US$ 500,000 and $1,000,000 under the old Act that was effective before 15th March, 2022. Now, investors must invest US$ 800,000 and $1,050,000 to file an EB-5 petition.

 

Additionally, the US Government has come up with some new regulations in the EB-5 Reform and Integrity Act 2022. They are as listed below:

RC record keeping and audit

USCIS shall conduct an audit of the RC every five years. Hence, RCs have to maintain records for five years.

RC’s annual statement

All regional centers have to maintain and share the annual statement with the investors. If they do not follow the requirement, USCIS can demand a minimum penalty of 10% of the total amount invested.

Annual fees by RCs

If the number of investors is less than 20, RCs have to pay annual fees of US$ 10,000 to the USCIS. If the number of investors is more than 20, RCs must pay annual fees of US$ 20,000.

Petition fees by RCs

RCs must contribute US$ 1,000 per petition to create funds so that they can recover the costs of adjudication and naturalization.

Administration of investment amount by investors

The US government has added a specific provision for an escrow account. The RC must have a 3rd party fund administrator, such as a USA licensed lawyer, CPA or broker/dealer to administer the EB-5 investors’ funds.

Marketing and Migration agents:

All marketing and migration agents appointed by the RC must be registered with the USCIS.

Conclusion:

To stop frequent frauds and create jobs for American communities the US Government launched the EB-5 Reform and Integrity Act 2022 with more stringent and well-defined regulations. For more information, please contact our law firm.

June 25, 2021

EB-5 Updates 20th August 2021 at 12.00 PM (IST) 

Ajmera Law Group has several direct investment options for the EB-5 program of the USA with a reduced investment of US$ 500,000.  Act fast as the rule may change at any time. 

  1. Mexican Franchise – Start in any state in the USA which meets the definition of TEA area
  2. Co-working space and daycare center based in LA, USA
  3. Burger and Hotdog restaurent in Huston, Taxas.   Please contact us for more information

EB-5 Update 10th July 2021 at 12.00 PM (IST)

EB-5 with investment on regional center is not available but direct EB-5 with investment under US$ 500,000 active and an investor can make an investment in the USA and apply for USA green card under direct EB-5.

EB-5 Updates: 25th June, 2021 at 8.00 AM (IST)

EB-5 program reauthorization just fails to pass in US Senate

A bill to establish EB-5 rules on a permanent basis has failed in the US senate and therefore the current change in EB-5 rules will expire on 30th June, 2021.

Now the US government and senate are on vacation to celebrate the 4th July holiday.

As the current EB-5 change (where the investment amount has been once again reduced to 500K) is on a temporary basis, the US Senate MAY grant an extension in July 2021 when senators are back from vacation.

This could be a great opportunity for investors to file for EB-5 with a reduced amount of investment. Serious investors must be ready with documents and investment amounts to file the EB-5 petition with a US$ 500,000 investment amount.

IT IS ALSO POSSIBLE TO MAKE THE REQUIRED INVESTMENT IN TWO PARTS.

The investor can also borrow money to invest in EB-5.

EB-5 Update: Dated 22 June, 2021:

EB-5 Investment for US$ 500,000

Read complete the US court judgment here 

May 30, 2021

As per some of the global organization world is passing through a time where we see the highest number of voluntary migration of human race.

For the last 50 years or we saw human migration for better education and a future for the family.

However, in the last 15-20 years we saw HNI and UNHI are also voluntarily moving from their home country to other parts of the world. In this respect, Residency and citizenship by investment is the most preferred way for HNI and UHNI to move from one country to another country for varsity of reasons.

 Before 2012, we saw only hand full of countries that were offering residency by investment such USA, Canada, the UK, Australia, and New Zealand.

 In 2012, we saw for the first time, Portugal golden visa with investment in real estate followed by several European countries such as Spain, Malta, Cyprus, Greece, Bulgaria, Moldova, Turkey, etc.  These countries mostly offering residency by investment but many attractive terms and conditions for the investors.

 At the same, we saw third group Carrabin countries offering citizenship by investment such as Grenada, St Kitts & Naïves, St. Lucia, Antigua & Barbuda, and Dominica.

 In 2013 we saw forth a group of business immigration to attract start-ups and its founder. Canada was the first country to start with and now followed by now more the 20 countries with a Start-Up visa program.

Not only this, many countries are now amending their program to give more options to investors for making an investment in not only one class but different asset classes.

 In view of the number of countries giving options for investment with residency and citizenship programs, it was the right time to give a comprehensive view of all countries based on asset classes. Said, Prahsnat Ajmera, lawyer, founder, and author of ALG.

 As a law firm, it is our professional duty to present and advise on all investment options to our investors rather than giving limited options of most expensive options.” Added Mr. Ajmera

The firm strongly believes that such publication and comparison will give investors to make well-informed investment decisions.

 The Ajmera Law Group wishes to publish on a yearly basis, residency, and citizenship by investment on asset class basis investment options for HNI and UHNI.

 Residency and Citizenship by Investment (RCI)

options by asset class

Select your residency and citizenship program by investing in an asset class of your choice.

Investment in >>>>>> Real Estate Financial Market / Funds / Bonds  Donation to government development project/fund or such other funds Enterprise / Business – New, Existing, JV Start-up Program Yearly Income
USA No No No Yes Yes No
Canada No No No Yes Yes No
Australia No Yes No Yes Yes No
New Zealand No Yes No Yes Yes No
UK No Yes No Yes Yes No
Ireland No Yes Yes Yes Yes No
EUROPE:            
Portugal Yes Yes Yes Yes Yes Yes
Spain Yes Yes No Yes Yes No
Greece Yes Yes No Yes Yes No
Bulgaria Yes Yes No Yes Yes No
Malta Yes Yes Yes Yes Yes No
Cyprus Yes Yes No Yes Yes No
             
Turkey Yes No Yes Yes Yes Yes
CARIBBEAN:            
St. Kitts & Nevis Yes No Yes No No No
Dominica Yes No Yes Yes No No
Grenada Yes No Yes No No No
St. Lucia Yes yes Yes Yes No No
Antigua & Barbuda Yes No Yes Yes No No

 

Disclaimer:

This is only a general indication of each RCI program. There are many more additional requirements for each program. The investor must seek legal advice from a licensed attorney who is specialized in RCI practice of the respective jurisdiction.

May 26, 2021

By removing the Trump administration’s proposal that aimed to kill the initiative, the Biden administration wants to resurrect an immigration program that allows foreign entrepreneurs to operate in the United States.

The International Entrepreneur Law, which was proposed by President Barack Obama’s administration three days before he left office in 2017, enables foreign entrepreneurs to work in the United States for up to five years if their start-ups can raise at least $250,000 US from the venture capital in United States, recruit ten employees, or meet other criteria.

As part of its attempts to revive the program, the Biden administration intends to market it aggressively. These actions are in response to demands from venture capital firms which want the administration to support a program that would encourage thousands of foreign start-up founders to relocate to or stay in the United States to expand their ventures.

“The Biden administration is unlocking an enormous job growth opportunity by incorporating the International Entrepreneur Rule which will help the United States remain the global leader in innovation,” said Bobby Franklin, President & CEO of the National Venture Capital Association (NVCA), the venture community’s preeminent trade association focused on empowering the next generation of transformative American companies.

“Immigrants in the United States have a long history of entrepreneurship, hard work, and creativity, and their contributions to this nation are incredibly valuable,” said Tracy Renaud, Acting U.S. Citizenship and Immigration Services Director.

Currently, there is no visa available for start-up founders in the United States, despite the widespread bipartisan support for the concept. Other visa types must be used for foreign entrepreneurs, but none are ideal.

Between 2017 and 2019, USCIS received only 30 applications for the program, with only one being accepted, according to a USCIS official.

According to USCIS, if the program is properly implemented, about 3,000 international entrepreneurs would qualify per year, resulting in the creation of about 100,000 jobs over a ten-year period.

Note: This article is contributed by Ms. Dishita Sheth – Intern at Ajmera Law Group.

May 1, 2021

The Main Points to be noted for this ban are: 

(i) President Biden has issued a proclamation imposing a COVID-19 public health travel ban on foreign nationals with a recent physical presence in India. This same type of travel ban is already in effect for Brazil, China, Iran, Ireland, countries in the European Schengen Area, South Africa, and the United Kingdom.

(ii) Starting at 12:01 am EDT on May 4, 2021, foreign nationals who have been physically present in India within 14 days of travel to the United States will be barred from entry, unless they qualify for an exception.

(ii) Consular operations in India are at a significantly reduced capacity due to the COVID pandemic, so those seeking exceptions to the new ban from a U.S. consulate are likely to experience delays and challenges.

Today, President Joseph Biden issued a presidential proclamation imposing a COVID-19 public health travel ban which prohibits the entry of foreign nationals who have been physically present in India within 14 days of their travel to the United States.  The India ban restrictions take effect at 12:01 am EDT on May 4, 2021.

However following people will not be affected:

  • U.S. citizens and nationals;
  • U.S. lawful permanent residents;
  • Spouses of U.S. citizens and lawful permanent residents;
  • A foreign national who is the parent or legal guardian of an unmarried U.S. citizen or lawful permanent resident under the age of 21;
  • A foreign national who is the sibling of a U.S. citizen or lawful permanent resident, provided they are both under 21;
  • A foreign national who is the child, foster child or ward of a U.S. citizen or lawful permanent resident, or who is a prospective adoptee seeking to enter the United States on an IR-4 or IH-4 visa;
  • A foreign national traveling at the invitation of the U.S. government for a purpose related to containment or mitigation of the COVID-19 virus;
  • A foreign air or sea crewmember;
  • Certain A, C, E-1 (TECRO or TECO employees), G, and NATO nonimmigrants or whose travel falls within the scope of section 11 of the United Nations Headquarters Agreement;
  • A foreign national whose entry would further important U.S. law enforcement objectives;
  • A foreign national whose entry would be in the national interest; and
  • Members of the U.S. armed forces and their spouses and children.

An updated guideline will be issued by the US  government which may allow the travel of those Indian citizens who can apply for travel to the US under the national interest exception.

For more information and legal opinion contact our office.

April 20, 2021

How many Indian HNIs really left India?                        

In the last few years, we have time and again read articles in the Indian media with the following eyeball grabbing headlines:

Being in the immigration industry with more than 28 years of experience, I was intrigued by these headlines and the alleged figures. Yes, India’s rich and famous are leaving the country and opting for a second passport but the numbers cited in many of these articles seemed preposterous.

I decided to do some research to determine if this was true. I picked out the last article and tried to reach the author of the article.  He was nice enough to send me the report which was referred to in this article. He also sent me a note saying – ‘Our figures are estimates’. 

I also reached out to the bank which has been part of the same report and quoted in several pressnote. The bank, however, has not replied to my email.

Regulatory Bank of India

 

Here is the official data from the Reserve Bank of India (the regulatory bank in India) of the remittance/investment made by Indian citizens overseas in the last 4 years.

Outward remittances/investments made under the Liberalised Remittance Scheme (LRS) for Resident Individuals / Indian Citizens – Published by Reserve Bank of India (RBI)
(US$ Million)
Item 2016-17 2017-18 2018-19 2019-20 TOTAL of Four years
         
1 Outward Remittance under the LRS – TOTAL for the year 8,170.7 11,333.6 13,787.58 18,751.40 52,043.28
1.1 Deposit 283.8 414.9 455.94 623.37 1778.01 Investment
1.2 Purchase of immovable property 92.9 89.6 84.53 86.43 353.46 Investment
1.3 Investment in equity/debt 443.6 441.8 422.90 431.41 1739.71 Investment
1.4 Gift 749.5 1,169.7 1370.24 1904.53 5193.97 Expenses
1.5 Donations 8.8 8.5 8.67 22.32 48.29 Expenses
1.6 Travel 2,568.0 4,022.1 4803.81 6954.20 18348.11 Expenses
1.7 Maintenance of close relatives 2,169.5 2,937.4 2800.88 3437.46 11345.24 Expenses
1.8 Medical Treatment 17.3 27.5 28.59 33.88 107.27 Expenses
1.9 Studies Abroad 1,536.4 2,021.4 3569.87 4989.04 12116.71 Expenses
1.10 Others 300.8 200.6 242.15 268.74 1012.29 Expenses
Note: 1.10: Includes items such as a subscription to journals, maintenance of investment abroad, student loan repayments, and credit card payments.

 

We can plainly see from the above RBI data that the ‘estimates’ cited in most reports and their subsequent press notes are nowhere near the actual figures. It appears that these articles/press notes are nothing more than self-serving paid advertorials.

By creating a hype that a large number of Indians are leaving the country by opting for a second passport, they perhaps want to popularize the Residency & Citizenship by Investment programs offered by different countries in India. They hope that rich Indians will join the bandwagon and sign up for these programs.

February 10, 2019

 


How to select your EB-5  project and make a safe investment in the EB-5 project?

Regional Centers, Broker dealer, Agent, and mortgage broker who is showing you EB-5 project, you should ask the following questions.

  • What year was the Regional Center first approved by USCIS?
  • How many EB5 projects has the Regional Center completed?
  • How many I-526 and I-829 approvals obtained by the investors in the Regional Center.
  • May I have a copy of the PPM _ Private Placement Memorandum) so I can review the credit agreements for the senior bank loan and the other loans?
  • Is it true that the EB-5 loan is the last loan to be repaid because the Senior Bank Loan will be paid first?
  • Does the EB-5 loan have a security interest in real estate or in the assets of the developer or Regional Center?
  • May I have a copy of the EB-5 insurance policy?  Does the policy cover the 3 primary reasons for application denial: fraudulent statements, criminal background and source of funds issues?
  • If the project doesn’t sell as quickly as expected, could the EB-5 loan be extended beyond 5 years?
  • If the project sells for 15% less than expected, could I lose all or a portion of my investment?
  •  Where is the money coming from to pay the interest on the bank loan?
  • Does the Fund provide the letter from the senior bank loan and the private loan as well as the Targeted Economic Area?

Find out these answers and consult our law firm to compare answers with Regional centers we work with and answer provided by them to these questions.

Email: prashant@ajmeralawgroup.com

August 21, 2018

Canada immigration for H1B visa holder, L1 visa holder and other visa class having temporary status in USA

Is your child, relative or friend facing a problem with H1B visa, L1 visa or any other visa in USA?

No worries. They can now breathe easy knowing that there are several options available to them to acquire legal status in USA. If they wish to move out of USA, they can also choose from more than 20 other countries around the world. This short video will give them all possible options:

  1. USA EB-5 investor program:
  • Make an investment of 1,000,000 US$ in a new business and create 10 jobs or
  • Make an investment of 500,000 US$ in a new business and create 10 jobs provided this business is in a TEA area or high unemployment area.
  • Investment can be in form of Debt /Loan, Equity or fund.

Good projects can secure:

-your principal amount

-a good return and

– processing time is as short as 3 months to 13 months for the first I-526 petition approval.

  1. Canada skilled worker immigration:

You can qualify under this program if you have –

  • A Master’s degree
  • Minimum of 3 years of work experience
  • Are preferably under the age of 35 years or better still, under 29 years of ageand
  • Have an IELTS score of 8 in listening and 7 in each of the other three categories
  1. Start Up immigrant visa of Canada:

You can qualify for this visa if you have started a company that can be –

  • Incubated by Canada Government approved incubators or
  • If angel investors make an investment of 75,000 CD$ in your company or
  • If a VC makes an investment of 200,000 CD$ in your company
  • And if you have the required IELTS score and post-secondary education
  1. There are 10 different business immigration programs of Canada:

In general, you need to fulfil the following basic criteria for all of them –

  • Possess net assets of 500,000 CD$ and above
  • Have 2 to 3 years of business experience or senior executive experience
  • Have a viable business plan to start a new business, purchase an existing business or enter into a joint venture with another company
  • Have an IELTS score of at least 5 band in each category
  1. UK Tire 1 immigration:

To qualify under this program you need to have –

  • Net assets of 200,000 pounds or more
  • IELTS band of 4 to 5 in each category
  • A viable business plan which will create 2 jobs
  1. Citizenship of Malta (EU member country):

If you wish to obtain the citizenship (passport) of Malta, a European Union member, you will need to –

  • Make a donation of €650,000
  • Purchase bonds of €150,000
  • Purchase a residenceworth€350,000 or rent a residence worth€16,000 per year

Children under 26 years and parents can be included under this program

  1. Residency of Malta:

If you wish to obtain the residency of Malta, you will need to –

  • Make a contribution of €30,000
  • Purchase bonds of €250,000
  • Purchase a residence worth€270,000 or rent a residence worth€10,000 per year

Children under 26 years of age and parents can be included under this program

  1. Citizenship of Cyprus (EU member country):

If you wish to obtain citizenship of Cyrpus, an EU member country, you will need to-

  • Purchase real estate/property worth€0 to 2.5 million
  • Permanently maintain a residential property of €500,000 (you can sell other assets after 3 years)

Children under 25 years and parents can be included under this program. There are no language, minimum age and education requirements

  1. Residency of Cyprus:

If you wish to obtain the residency of Cyprus, you will need to –

  • Purchase real estate/property worth €300,000
  • Make a bank deposit of €30,000
  • The applicant must provide proof of secured annual income of at least €30,000 outside of Cyprus. This income must increase by €5,000 for every additional child and €8,000 for each dependent parent.

Children under 25 years of age and parents can be included under this program. There are no language, minimum age and education requirements

  1. Residency of Greece (EU member country):

If you wish to obtain residency of Greece, you will need to –

  • Purchase real estate worth €250,000 or more

Children under 21of age and parents included can be included under this program. There are no language, minimum age and education requirements. Under this program, applicants cannot work for someone but can operate their own business.Applicants can apply for Greek citizenship after 7 years

  1. Residency of Portugal(EU member country):

If you wish to obtain residency of Portugal, you will need to –

  • Purchase real estate worth €500,000 or more (lesser amount investment possible)

Children under 18years of age and parents can be included under this program. There are no language, minimum age and education requirements. Applicant can work as well as operate their own business

  1. Residency of Spain ((EU member country):

If you wish to obtain residency of Spain, you will need to –

  • Purchase real estate worth €500,000 or more

Children under 18 years of age and parents can be included under this program. There are no language, minimum age and education requirements. Applicant can work as well as operate their own business. Medical insurance is required.

  1. Second passport of Europe – Bulgarian Citizenship (EU member country):

If you wish to obtain a second passport and easy access to European markets, you can opt for Bulgarian citizenship. To qualify, you will need to –

  • Invest €500,000 for Permanent Residence in government bonds
  • Invest €1 million for Citizenship in government bonds

Loans are available for making the required investment. Upon approval, applicants can live, work, operate a business and study for free/with reduced fee in any member EU country.

  1. Citizenship of Dominica in 3 months:

If you wish to obtain citizenship of another country in a short period of time in a hassle-free manner, you can apply under Dominica’s Citizenship & residency Program. To qualify, you will need to –

  • Make a donation of $100,000 US or more OR
  • Make aninvestment in real estate of $200,000 US or more for 3 years

Children under the age of 30 years, parents above 55 years of age &grandparents can be included under this program. There is no taxation on income earned abroad and one can obtain NRI Status plus visa free travel to more than 120 countries around the world. Easy access to medical schools in USA for children

  1. Citizenship of Grenada in 3 months:

If you wish to obtain citizenship of another country in a short period of time, you can apply under Grenada’s Citizenship & residency Program. To qualify, you will need to –

  • Make a donation of $200,000 US or more OR
  • Make an investment in real estate of $350,000 or more for at least 5 years

Children under the age of 29 years and parents above 55 years of age can be included in the application. There is no taxation on income earned outside of Grenada and one can obtain NRI Status plus visa free travel to more than 120 countries around the world. Easy access to medical schools in USA for children and E2 Business visa of USA.

  1. Citizenship of St Kitts and Nevis in 2 months:

If you wish to obtain citizenship of another country in a short period of time, you can apply under for citizenship of St Kitts & Nevis. To qualify, you will need to –

  • Make an investment of at least $400,000 US in one of the approved real-estate developments OR
  • Make a donation of $250,000 US to the Sugar Industry Diversification Foundation (SIDF, a public charity)

Children under the age of 30 years and parents above 55 years of age can be included in the application. There is no taxation on income earned outside of the island country and one can obtain NRI Status plus visa free travel to more than 150 countries around the world. As a Commonwealth citizen, applicant receives certain preferential treatment in the United Kingdom. Two or more applicants may apply for citizenship together by purchasing one piece of real estate.

  1. Citizenship of Antigua & Barbuda in 3 months:

You can obtain second citizenship or a second passport of this beautiful island nation within a short period of time. To qualify, you will need to –

  • Make a contribution to the National Development Fund of at least $100,000 US OR
  • Make an investment in designated, officially approved real estate with a value of at least $400,000 US OR
  • Make an investment in an approved business of at least $1,500,000 US

Dependent children and dependent parents over 65 years of age can be included under this program. There is no minimum net worth requirements or previous business experience needed. Visa free travel to more than 135 countries around the world.  No taxation on income earned outside of St Kitts & Nevis

  1. Citizenship of St Lucia in 3 months:

You can obtain second citizenship or a second passport of this beautiful island within three months. To qualify, applicant will have to –

  • Choose from four options which range from an investment amount of $100,000 US to $3,500,000 US. These four options are –
  • Saint Lucia National Economic Fund
  • Real Estate Projects
  • Enterprise Projects
  • Government Bonds

Dependent children under 25 years of age, dependent parents above 65 years and mentally or physically challenged dependent children and/or parents can be included under this program. Visa-free travel to over 120 countries around the world. No taxation on income earned outside of StLucia. Under the Enterprise Project option, two or more applicant can make a minimum investment of $6,000,000 US, with each applicant contributing no less than US$1,000,000.

  1. Business Immigration to New Zealand:

You can apply for conditional business residency of New Zealand. To qualify you need to –

  • Invest $100, 000 NZ in capital investment and run a business for 2 years OR
  • Invest $500,000 NZ in capital investment and run a business for 6 months
  • Have a business plan that will help NZ economy
  • Be fluent in English and serious businessmen only

After obtaining a business permit, applicant can apply for Permanent Residence of New Zealand after 3 years.

  1. Investment immigration to New Zealand – $3 million:

You can apply for direct PR of New Zealand through investment. To qualify, you will need to

  • Have $3million NZ in available assets
  • Invest $2.5million NZ in real estate
  • Have 3 years of business/management experience
  • Have basic English skills (IELTS 3 band or equivalent)
  • Be under 65 years of age 
  1. Investment immigration to New Zealand – $10 million

You can apply for direct PR of New Zealand through investment. The highlights of this program are –

  • Must have $10million in available assets
  • There is no age requirement
  • Can invest in a variety of assets class
  • No minimum residency requirements
  1. Business Immigration to Australia – Business Visa Class (188A):

You can apply for temporary PR of Australia. To qualify, you will need to –

  • Have a business turnover of $500,000 AU and 30% (private company) or 10% (private limited company) ownership
  • Have net assets of $800,000 AU
  • Have a business turnover of $300,000 AU in Australia
  • Manage a business in Australia for 2 years
  1. Business Immigration to Australia – Investor Visa Class (188B):

You can apply for temporary PR of Australia. To qualify, you will need to –

  • Have net assets of $2.25 million AU
  • Own and manage a business of $1.5 million AU
  • Invest 1.5 million AU in governmentbonds

If you keep your investment for 4 years and have minimum residency for 2 years, you can be eligible for permanent PR and citizenship after 5 years.

  1. Business Immigration to Australia – Significant Investor Class (188C):

You can apply for temporary PR of Australia. To qualify, you will need to –

  • Invest $5million AU in Australia (various options available)
  • Stay 160 days in 4 years in Australia to get permanent PR
  • No age limit
  1. Business Immigration to Australia – Business Talent – Significant Business History (132A):

You can apply for direct PR of Australia. To qualify, you will need to –

  • Own & manage a business with a turnover of $3 million AU
  • Have ownership of 30% (private) or 10% (public) in the company
  • Have net assets of $1.5 million AU that can be transferred to Australia
  • Invest$400,000 AU in Australia
July 28, 2018

Of late a large number of regional centers have entered into the EB-5 market, offering a variety of investment choices to investors. This has resulted in investors becoming more and more confused regarding the most appropriate investment option most suitable to their needs and long term goals.

I regularly meet clients who have a very sound financial background, yet are completely lost when choosing the right EB-5 investment.

Here are the three most common offerings in the EB-5 market at present:

  1. DEBT Model:

98% of the offering in the EB-5 market is using this model. This model involves three entities:

(i) The company who has been granted the ‘Regional Center(RC)’ approval

(ii) The developers who have incorporated a company or LLP -1 for the project, and

(iii) Another LLP-2 which is used as an investment vehicle for EB-5 purposes.

As an investor, you will be making investment in LLP-2 which will loan fund to LLP-1. In return, LLP-1 will give credit for all jobs created in the project to LLP-2so as to meet the mandatory ‘Creation of 10 jobs’ requirement of the EB-5 program.

Investment is generally made for a period of 5 years and at the end of 5 years, the capital is returned to the investor by taking a second mortgage.

LLP-1 also offers interest to EB-5 investors which can be in the range of 1%-4% per annum. Ideally, if all these three entities are managed by one single developer company, then this particular EB-5 project can be considered a good selection.

However, in reality, we see that RC approval is obtained by one entity, which then seeks out a developer to develop the project and an entirely different third company is involved in marketing the project. If you do adequate research you will find that there are very few developers who are directly involved in the marketing of their project.

In these type of projects, the local banks havethe first claim, promoters have second claim and EB-5 investors have the last claim to receive any money in the event of project failure.

  1. EQUITY Model:

Very few companies are currently offering the equity option for EB-5 investment. In this model, only one company or LLP is created by developers of the project and EB-5 investors are required to make an investment in this particular LLP only. EB-5 investors give the managing rights to the developers. In this model, the investors are not given any fixed returns but are offered a percentage of the profits as and when the project becomes profitable, while the developers take only a small portion of the profit.

In this model, the risks are higher but returns can be as high as 10%-12% per annum. Some of the hotel projects for which our law firm has raised EB-5 investment capital were based on this model and have consistently given good returns.

In many EB-5 projects, there are no loans from local banks or lenders except bridge loans. Because of this, the properties are mortgage-free right from day one and chances of failureare very low,while those of good returnsare very high.

In case the project fails, the capital can be distributed amongst all the EB-5 investors as compensation since there is only one class of investors.

  1. FUND Model:

Quite a few RCs are offering this model now. In first two options, there is one project and one company or LLP. In the Fund model, a fund of a certain predetermined amount is created to loan money to several projects and hence the risk is distributed equally among several projects. An annual fixed return is given to investors which can be in the range of 1%-3%.

Simply put, the first model can be compared to a debenture, the second one to a share investment and the third one to a mutual fund investment. Each model has its own pros and cons. However,the bottom line is that a viable EB-5 project must have good developers who have a successful track record in non-EBB and EB-5 project development.

This article outlines very general information regarding EB-5 investment options for the sole purpose of easy understanding for investors at large. Each investor must seek appropriate legal advice and consult their financial advisers before making any kind of the investment.