Direct EB-5 Visas – The Criteria

If you are an investor and looking to expand your business to the United States, then the EB-5 visa program allows you to set up a commercial entity within the territory of the United States, subject to the fulfillment of its various criteria. More than 90% of EB-5 investments are made through EB 5 Regional Centers, and as a result, very few law firms have experience with the alternative: the so-called “Direct” EB-5 applications.

A Direct EB-5 application is one where an investor opens, expands or acquires EB-5 qualifying businesses in multiple and varied industries across the United States. Davies & Associates has a successful history of representing clients from all around the world start and invest in businesses in the United States. This includes clients from India, Russia, Brazil, Azerbaijan, Egypt and many more countries. In this blog today we will discuss the criteria for getting a direct EB-5 Visa to the USA.

  • Capital Requirements: A Foreign company run by a foreign individual is required to make a minimum investment of 1 Million dollars for fulfilling the first requirement of EB-5. This amount is brought down to $ 500.000 if the investment is in a TEA region or a targeted employment region, which refers to mostly underdeveloped areas with high levels of unemployment. This requirement is statutory and this capital does not include costs incurred in processing and legal fees. It’s important to note that these criteria cannot be fulfilled with financed money, for example if you have borrowed from a bank and should come from the existing profits of a company.
  • Non-Profit Entities: Non-profit entities are ineligible for the EB-5 visa subject to certain exceptions. If you are looking to set up an NGO or any other organization on a non-profit model, then you would have to look for other avenues.
  • United States Commercial Entity: This one’s pretty basic, and requires the commercial entity to be registered in the territory of the United States and subject to federal and state laws. If your country has an investment treaty with the United States you can also look at the E2 visa which is by far the fastest way to get into the country. In case of an E2 visa, you can hire yourself and be your own sponsor for your immigration to the country.
  • Employment Generation: Other criteria of the EB-5 visa is an undertaking to create at least 10 full time jobs for US citizens. It’s important to keep this in mind if you are planning to get the workforce from another country.

We have told you briefly, about the criteria for getting an investor visa for the United States of America. We at Davies and Associates LLC have helped hundreds of corporations, successfully set up their businesses in the country, and we would love to hear from you in case you have any further questions.


5 Advantages of Taking EB-5 Visa Through Regional Center

The EB-5 visa is usually the quickest, most straightforward way to a Green Card to the United States. Applicants are able to secure a Green Card for themselves, their spouses and any children under the age of 21 within an average of around 18 months. There are two different routes to a Green Card. One is an investment of $1 million or $500,000 in setting up a new commercial enterprise. This is called the Direct EB-5 route and D&A is one of the few law firms with significant experience of this. The other, and by far the most popular option, is by investing with a Regional Center.

Why is the Regional Center route so popular?

  1. Compliance: It is important to remain compliant with EB-5 regulations so that there are no threats to the Green Card. One important requirement is that each EB-5 investment should create and sustain ten full-time American jobs. This can be a challenge to investors setting up their own business and non-compliance can put the investment and Green Card at risk. The Regional Centers are allowed a more complex calculation for job creation and, while there are never any guarantees, a good Regional Center can be expected to comply with the regulations on your behalf.
  2. Less work: EB-5 Investors simply need to place the requisite funds with the Regional Center and they do all the rest of the work for you. Setting up your own business comes with addition work, but of course, this can also be exciting and Davies & Associates Corporate Team is able to assist you every step of the way. Many of our clients decided to go the Regional Center route and then establish their own business when they have their Green Card. This means their business is not tied to EB-5 regulations and there is more leeway to grow the business in the most appropriate way.
  3. Lower investment: Regional centers usually locate their projects in so-called “Targeted Employment Areas” (TEAs), these are areas of high unemployment and rural areas. The EB-5 investment is actually set at $1 million, but this is halved to $500,000 if the investment is made in a TEA. People pursuing the Direct EB-5 route need to ensure that they establish their business in a TEA if they wish to make the lower investment. Davies & Associates is able to provide advice on this.
  4. Interesting Projects: Regional Centers invest in some truly exciting projects, from Golf Courses in Florida to hotels in Hollywood, California where all the A-list celebrities hang out. There are so many different projects with different business cases, it can be exciting selecting which project to invest in.
  5. Maximum flexibility: Investing in an EB5 regional center will give you utmost flexibility, in terms of not having to micro manage your investment. You are not required to live near the area where you have invested and you can travel and reside anywhere in the territory of the United States.

With over 800 Regional Centers of varying quality across the United States, it is vital to conduct due diligence on your chosen projects. Davies & Associates is uniquely positioned in that we have attorneys experienced in financial real estate who can provide advice on your chosen Regional Center and project.