What is EB5 Conditional Green Card
Applying for any kind of immigration visa can be a time consuming and challenging task. It is a major life decision and requires ample research. There are many minor details that an applicant has to cover in order to make their application attractive for approval.
It is important that a person knows all the requirement details before they invest money and time into applying for a certain category. There is no point in wasting either of these resources if you don’t meet the initial criteria. This is why it is crucial to do your research before you dive into the immigration process. We hope this article proves to be a useful guide and helps you in making a well informed decision for you and your family.
Why Should You Consider Migrating to the U.S
We’ve all fantasized about living the American Dream, haven’t we? However before we answer your question “what is eb5 conditional green card”, we want do discuss why you should be thinking about moving to the USA in the first place. USA unquestionably remains to be one of the most popular countries for immigration. There are so many reasons behind this. Whether it is career opportunities or healthcare, America undoubtedly has a lot to offer to its residents.
Moreover, America is a country that has great economic strength and it offers its residents financial stability. The US Dollar is the World’s primary reserve country, therefore earning in dollars definitely puts you in a privileged position.
The best part is; living in the states is quite affordable as well. According to the Global Food Security Index, The United States had the third highest overall score in 2018. This takes the factors of affordability, availability, and quality and safety of the food into consideration.
Last but not least important, America has a long history of having a welcoming culture. It is a country that is open to people from all backgrounds and culture. America promotes diversity. It is truly a land full of opportunities and moving there is actually easier than you might think!
So if you’re double minded about applying and are curious about what is eb5 conditional green card, continue reading to find out all you need to know.
What is the EB5 Visa?
You might be wondering what is eb5 conditional green card but before we get into that, let’s cover the basics. The EB-5 Visa is a visa category for immigration. It is specifically designed for investors and entrepreneurs to promote economic growth in the US. If anyone is looking to kick-start a business in the USA, they should consider applying for it.
What are the Requirements for the EB5 Visa
In order to qualify for the EB-5 category, an applicant is required to invest at least $1,000,000 in a business in the USA. This amount may get reduced to $500,000. This is done when you make an investment in an economically depressed area which is termed as a “Targeted Employment Area”.
Besides investing this amount, the business an applicant invests in must also create 10 fill-time jobs. This is aimed to help US workers and foster economic growth.
Another condition for the EB5 Visa is that the invested business must be a for-profit commercial business. Real estate investments and non-profit organizations do not help an applicant qualify for the EB5 Visa category.
You also have to actively take part in the management of this new commercial enterprise. This shows that you are dedicated to making your business prosper and want it to grow in the future and create economic value.
Furthermore, the funds you invest must be lawfully obtained and be at risk once you invest them. This shows the government that these funds come from a legal source. Putting your money at risk shows you are willing to create economic growth by taking calculated risks.
What are Some Examples of Lawful Sources of Funds?
One of the key requirements for the EB5 Visa is that the funds you invest must be obtained lawfully. This means you can show a legal source of those funds. They should not be associated with any illegal activities. Otherwise your application for the EB5 Visa will seem like an attempt for money laundering. You often have to prove how the funds were earned by submitting official documents including tax returns and bake statements.
Some examples of lawful funds are:
- Earned Income
- Income from the sale of a business
- Income from the sale of a property
- Loaned money taken against equity in real estate
- An inheritance or a gift
Does the Investment have to be Only Money?
The investment you make in order to apply for the EB5 Visa does not necessarily have to be in the form of money. It can be capital in the form of:
- Cash Equivalents
- Tangible Property
- Proceeds from a loan
If you are utilizing the funds from a loan as your capital investment, then it is imperative that the loan should be backed by you. This means your personal assets must be securing the loan and you should be the primary person who is responsible for this loan.
How Many Jobs do I have to create?
According to the EB5 Visa criteria, your investment has to create 10 full time jobs in order for you to get a permanent residence in the USA. The new business has to hire ten qualifying employees who are US citizens, permanent residents or even immigrants who are authorized to work.
Hiring non-immigrants or illegal immigrants will not serve this purpose. Nor can you hire your own spouse, sons or daughters as qualifying employees. In order to meet the criteria, you have to hire deserving workers who you employ on a full time basis.
Furthermore, you are not allowed to combine two jobs to count them as one full-time job. Instead you can have 2 employees who share a full-time job position. This is known as job sharing and is permitted.
In the case that you buy a business that already has 10 employees; you do not get any special consideration. You still have to create ten more jobs in order to get a permanent residency after 2 years. The only exception to this rule is if you buy a troubled business.
A troubled business is one which has been experiencing a net loss of at least 20 percent of its net worth over the past one or two years. This is before the new investor had bought the firm. So in a way, the new investor is saving the jobs of people who work in a firm that’s headed towards bankruptcy.
In the case that the business an investor buys does not have 10 full-time working employees, the investor must do hiring to bring up the number to at least 10.
Overall, you are expected to create 10 full-time jobs which are not temporary or seasonal. They must be permanent and last for the 2 years of eb5 conditional green card.
What does it mean to put Your Money at Risk?
If you are curious about what is eb5 conditional green card and what it means to put your money at risk, then continue reading.
The requirement that your capital investment should be at risk simply means that the funds should be actually spent and not be safely deposited into your business account in an American Bank. This is based on the economic concept that in order to create economic value money has to be circulated. A few things to remember are:
- Your funds must not just be deposited into a business account or sit as business reserves
- Your funds must be an investment and not a loan to an enterprise
- You should not receive any formal guarantee that the money you invested will be entirely returned to you
- Your investment should be subject to a gain or loss in business
So your EB5 investment has to remain at risk until 2 years after which this condition is removed. Once you become an unconditional permanent resident, you no longer have to meet these requirements.
Types of Investment You Can Make
Investors have two types of investment options they can make. They can either choose to make a direct investment or they can also invest in a regional center. This is entirely their decision.
When they choose to make a direct investment, they can start their own business or even buy out an existing business. This of course requires more commitment and comes with its own risks.
On the other hand, if they choose to invest with a regional centre, they will be partly funding a large scale project. Regional centers are dedicated to collecting investments from multiple EB5 investors for projects such as a resort or an apartment complex.
What is the Main Difference between the Two Types of Investment
The main difference between the two types of investments is the degree of control the investor has on the investment. In the direct investment, the investor is normally the sole owner of the company or shares the ownership in partnership.
This gives the investor control over the firm and all the decisions related to it. In this type of investment, the investor will be able to monitor the day-to-day operations and wellbeing of the business.
In a regional center investment, the investor will not have the same degree of control. Usually, the investor is just one of many investors who have invested in that large scale project so they will not have much control.
Can I Convert my E2 Visa to an EB5 Visa?
In the case that you are already in the US on an E2 Visa, then you can surely convert it to an EB5 Visa. This process is simply called an adjustment of status. Your E2 business can be used to count as your business for your EB5 Visa. This is a favorable position as both; the money you’ve invested and the jobs you have already created will help you meet the requirements.
Can My Existing Business in the US Help Me Qualify as en EB5 Visa Applicant?
In certain cases, your existing business can help you qualify for an EB5 Visa. You must simply meet all the requirements explained above. You must be able to prove that you meet the following conditions:
- Your business is a commercial enterprise
- You have already invested a sum of $1 million
- You can show the invested funds were lawfully obtained
- You have created 10 full time jobs or more
Does the EB5 Visa lead to a Green Card?
If your mind is boggling with the question what is eb5 conditional green card and if you can get a green card through it, the answer is yes.
The EB5 Visa is a classification of immigrant visa through which successful candidates do get a permanent green card. You can also apply for a green card for your spouse and children after getting an EB5 Visa.
The condition for your children to be able to get the green card through your EB5 Visa is that they are unmarried and under 21 years of age.
What is EB5 Conditional Green Card?
You can get a green card through the EB5 Visa through a process. This is a way for entrepreneurs and business investors to settle down in the US as permanent residents. The first step of that process is becoming a conditional permanent resident for two years. It is called conditional green card because you have to meet certain conditions for it to convert to a permanent green card.
This step is completed if you keep your capital investment in the US business for the entire period of two years. Moreover, you have to show that you have successfully created 10 full-time jobs for workers in the US for 2 whole years. They are also most likely to sustain in the future.
The Final Word
Hopefully, after reading this article you should have a much clearer answer to “What is eb5 conditional green card” and other similar queries. Now that you know everything, you can kick-start your process for the EB5 Visa!