Different Types of EB 5 Visa Investment Options for Investors

Different Types of EB 5 Visa Investment Options for Investors
Different Types of EB 5 Visa Investment Options for Investors

The EB 5 investment visa program is the most popular, flexible, and convenient visa option designed for investors who want to get a permanent residence visa after meeting the requirements of EB 5 visa. It allows foreign investors to invest in any type of profitable lawful business entities. There are several types of EB-5 visa investment options available for foreign investment. Simply scroll down and take a look:

Create a new business

One of the most famous choices chosen by a number of investors is creating a new business. This program was established after November 29, 1990. Foreign investors are eligible to invest an amount after the specific date by ensuring that the legal criteria are met. The Law of 1998 of the EB 5 investment state that it is essential that foreign investors should be available at the time of the foundation of a business, but it created chaos as multiple businesses were based on the basis of a partnership.

The model of partnership focuses on the establishment of business among two entities. But, it includes more than two partners of the enterprise demands it. Due to this, the 1998 precedent such limited partners of an entity were not eligible for it. However, after 2002, Congress had changed the law granting the authority only to the petitioners that they should showcase their investment in the specific EB 5 amount. There are so many basic requirements to create a new business, including

  • The investment amount should be at least $1,800,000. If the investment is made in a company located in a targeted employment area, the amount of investment is $900,000.
  • It should provide benefits to the United States economy in the form of goods and/or services.
  • It is essential to create a minimum of ten full-time employment positions.
  • It is essential to get involved in the daily management of the company. The positions include acting as a corporate officer, board member, and so on.

Buying an existing business

A foreign investor is allowed to reconstruct or redesign an existing business. However, the USCIS or United States Citizenship and Immigration Services does not consider it enough for a business to amend its legal structures.

Troubled business

According to the current precedent, a troubled business is an organization that functions for a minimum of two years and has incurred a net loss in its 12 to 24 months based on the date on the Form I-256. This loss must be a minimum of 20% of the troubled business entity’s net worth prior to that certain loss. To make sure whether the business has been in existence for 2 years, the beneficiaries in interest to the trouble business will be deemed to have been in existence for the same time as the business they succeeded.

Grow an existing business

There are so many EB-5 investment options for foreign investors. In addition to the above, foreign investors can expand their existing business in the form of establishing a new business. Here, the investor is obliged to grow the worth and the number of employees of the business by a minimum of 40%. For this program, the specific requirements state that if the investors increase the number of employees and extend its business, he must create more than ten full-time jobs.

Pool

The investment options provide opportunities to various investors to pool their investment to generate a single enterprise. All foreign investors must infuse their capital in a way to generate at least ten jobs. All these jobs created by the investors and their credit must be distributed to the foreign investors.