5 Reasons Why One Should Apply for an Investor Visa for the USA

Cost of EB 5 Visa

Girish Mohile is an Associate with D&A based in Mumbai, India. Girish works as local Business Development representative for the firm and acts as liaison between Indian clients and US attorneys on their source of funds. Girish is not licensed to practice law in the United States and nothing in this blog constitutes legal advice.

 

US, while known for its competitiveness and robustness in the market, offers the most exciting business entrepreneurship to its residents and foreign investors. However for investing in the US market, it is imperative to hold an investor visa which comes with some additional benefits to look out for. Here is a list of reasons why one should apply for an investor visa for the USA:

  1. Largest consumer market

The GDP of US generates around USD 20 trillion and is a home to over 300 million people and has some of the highest household spending in the world. Hence the consumer market offers ample amount of business opportunities to the investors. Investor visa for the USA can help the investor access the consumer market.

 

  1. Hub of innovation

US has been recognized in the world as a leading nation for research and development as the nation offers a safe place for new innovations. Person holding an investor visa can apply for patent, copyrights and trademark.

 

  1. Talented workforce

US has some of the best universities and in the initial stages, the public school offers free education. There is an option to join vocational training school in case someone is not keen to pursue University education. Overall, due to the higher education rate in the country, a talented and creative workforce would come handy for an investor visa holder.

 

  1. Abundance of resources

Since US is a huge country, it holds borders with other countries with diverse climate and hence has no shortage of resources. Resources like minerals and metals are in abundance in the country and would be abundantly rewarding to investor visa holder.

 

  1. Competitive and robust market

US due to its massive landscape, gives an opportunity to the investors to invest in fields which impact the market globally. Industries like aerospace, chemicals, consumer goods, energy, environmental technology are cutting edge and developed. This gives a huge impetus to an investor visa holder.

To take utmost advantage of abovementioned benefits, seeking professional help while applying for  US business immigration and US visa investment program is of paramount importance.


EB-5 Visa Price to Rise to $900,000

Cost of EB 5 Visa

Duncan Hill is marketing director at Davies & Associates LLC. Duncan is not a lawyer and nothing in this blog constitutes legal advice.

 

The clock in now ticking. The minimum price of an EB-5 visa is to increase by 80% to $900,000 as of November 21, 2019. Anyone wishing to lock in the current $500,000 rate should act fast. 

 

A key requirement of the program is to document that the funds used to pay for EB-5 have come from legitimate sources, and this can take time. In India, our largest market, it takes an average of two months to prove source of funds, which effectively narrows the window to a deadline of late September. 

 

The $900,000 rate is only for investments made in areas of high unemployment, which are so-called “Targeted Employment Areas” (TEAs). The price of investments made outside these areas will rise to $1.8 million from the current $1 million.  

 

What constitutes a TEA is also likely to change when the new rules come into effect in November. Currently, individual states determine their own TEAs, but from November, this will be determined by the Department for Homeland Security instead. This change is designed to prevent wealthy districts being packaged together into a TEA with poorer ones.  

 

The increase is not as steep as initially feared. The industry had been expecting the minimum investment level inside a TEA to increase to $1.35 million. This figure would have taken account of inflation since the program started in the 1990s. However, the US authorities opted for the lower level to maintain the same differential with EB-5 investments placed outside a TEA. 

 

With an expected rush of applications over the next few months, anyone able to afford the higher rate may prefer to wait. By conducting due diligence on your Regional Center project or direct investment, you maximize the chances of having your money returned along with your Green Card – whether it be $500,000 or $900,000. 

 

Davies & Associates continues to position itself at the forefront of the industry and we have been quoted in India’s leading newspapers on this issue. This includes the Times of India, the Hindu, the Financial Express, and the Hindu Business Line

 

Indian-born clients also have the additional complication of visa retrogression, so we recommend discussing this with us directly. We will have a large team in India over the next few months helping our Indian clients with EB-5, as well as discussing alternative and temporary options such as the L1 visa, Grenadian Citizenship by Investment, and the E2 visa. 

 

Outside of India, we have a large team of multi-lingual attorneys working with our global clients on their source of funds and I526 filing. 

 

Contact us as soon as possible to maximise your chances of locking in the current EB-5 rules and rates.


EB-5 Visa Potential Fee Hike – File Your Application Now

Cost of EB 5 Visa

Duncan Hill is marketing director at Davies & Associates LLC. Duncan is not a lawyer and nothing in this blog constitutes legal advice.

The cost of an EB-5 visa may soon increase as planned changes to the investment requirements moved a step closer to reality yesterday. The EB-5 visa, which currently requires a minimum investment of $500,000, is one of the fastest and most straightforward routes to a United States Green Card.

The required investment amount has not been changed since the program’s inception in the 1990s and calls have been made for this to be altered to take account of inflation. This would mean a new minimum investment level of $1.35 million per application if the investment is placed in a project in an area of high unemployment. Investments outside of these areas would increase to $1.8 million from the current $1 million.

Since this would have a significant impact on uptake, the industry has been pressing for a more modest increase. It is not yet clear which position has won out, so it is vital to keep an eye on developments and start preparing an application.

Grace Period

We expect the announcement to be made shortly after the July 4th holiday weekend. After this, there will be a “grace period” of either 30 days or 45 days before the new regulations take effect. For those who are unable to afford a higher investment, it is vital to begin an application as soon as possible. The US government has strict regulations regarding the source of the funds used to pay for EB-5 and proving compliance can take time.

Due Diligence & Risk Mitigation

For clients who can afford the higher minimum investment level of $1.35 Million, we encourage you to apply as normal. EB-5 will continue to offer one the fastest and most straightforward routes to a Green Card. While your investment is naturally at risk, Davies & Associates is uniquely positioned to help you assess the risks associated with various EB 5 Regional Center projects. This would allow you to mitigate risks to your investment and boost the chances of having your money returned, whether it be $500,000, $1.35 million, or something in between.

Securing your Child’s Future

Since the EB-5 Regulations allows for a whole family to come under one application, the higher investment level may still represent value for money for some clients. The majority of our clients are parents seeking educational and employment opportunities for their children in the United States and so, for those who can afford it, the higher investment level may still be worth the opportunity cost.

For Indian parents who now face retrogression delays, it is vital to make a family-based application many years before your children reach the age of 21 to prevent them from “ageing out” and requiring a separate application. For our clients in countries not facing retrogression there is more time, but we still encourage you to apply as soon as possible as well.

Alternative Options: Expand your Business with an L1 Visa

For some of our clients, the prospect of retrogression and a fee hike means that EB-5 is no longer an option. We recommend you contact us for a free consultation to discuss your options. We have a dedicated L-1 Visa Team in New York that specializes in helping clients expand an existing business from their country of origin to the United States. Under this package, our corporate lawyers help you set up a new US office and our L-1 team prepares an application to allow you or a colleague to relocate to the United States for the purpose of running that office.

Alternative Options: E2 Visas

Another alternative is the E2 visa, which allows an investor to live and work in the United States for the purpose of owning and operating a specific business. Many of our clients seek to purchase a franchise business specifically for this purpose. Only citizens of certain countries are eligible for E-2 visas. Citizens of countries like India, Nigeria, South Africa and China are not eligible. Nevertheless, we are able to troubleshoot measures to make a client eligible.

With so much change in the EB-5 industry, it is vital to engage with an immigration attorney to stay ahead of developments and be fully aware of your options. Davies & Associates offers free consultations so we can recommend the best solution to suit each client on the basis of their individual needs. Contact us today to arrange your consultation.