EB-5 IMMIGRANT INVESTORS Permanent Residence in the U.S.
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Ann Massey BadmusAttorney Ann Massey Badmus is the founder of Badmus Law Firm, a law firmfocused exclusively on the practice of immigration law. Ann represents clientsworldwide on a broad range of family and employment based immigration issues.In her practice, she assists employers and their foreign national employees obtainthe necessary visas for authorized work in the United States.Ann holds a Bachelor of Science in Mechanical Engineering from the University ofDelaware and J.D from Widener University School of Law. Ann is frequentlyinvited to speak about immigration issues before chambers of commerce, barassociations and other interested organizations. She has also published severalarticles about immigration and has authored a book for foreign national physicians,Immigration Prescription - The Practical Guide to Immigration for Foreign Born Physicians,published in January 2004. In 2009, Ann was named an Outstanding MinorityBusiness Owner by the Dallas Business Journal.
Angela M. LopezAttorney Lopez joined Badmus Law Firm in April 2003. Since then, she hasexclusively concentrated her legal practice to the immigration field.She has successfully developed a large national practice representing numerousforeign nationals and their employers in a broad range of corporate andemployment-based immigration matters.In the medical industry, her clients range from individual physicians to small privatepractices to Hospitals and National Health Centers. She has guided physicians andtheir employers through J-1 waivers, H1-B, O-1 and permanent residenceapplications based upon labor certification, extraordinary ability aliens and nationalinterest waivers nationwide.Angela is frequently invited to speak about immigration issues before chambers ofcommerce, bar associations and other interested organizations.
EB-5 – Visa for Investors Employment- Based fifth preference category (EB-5) Foreign investors seeking permanent residence in the U. S.
EB-5 – Visa for Investors The United States offers 10,000 EB-5 visas per year 3,000 for investors in Targeted Employment Areas (TEA) 3,000 for investors in Regional Center (RC) Programs
EB-5 Visa UsageFiscal Year and/or Total EB-5 Visas Issued Quarter FY11 Q1 1,421* FY10 1,885 FY09 4,218 FY08 1,360 FY07 806 FY06 744 *Preliminary estimate of FY11 Q1 Visas Issued
Who is EligibleIndividuals who:• “have invested or are actively in the process of investing• minimum amount of capital required• into a new commercial enterprise”
New Commercial Enterprise Creating - original business after November 29, 1990; or Purchasing - existing business and restructuring or reorganizing so a new commercial organization results; or Expanding - existing business by 140% of the pre- investment number of jobs or net worth; or Retaining - all existing jobs in a troubled business that has lost 20% of its net worth over the past 12 to 24 months.
New Commercial Enterprise Create full-time employment - 10 U.S. qualified individuals; or Maintain the number of existing employees (“troubled business”) Benefit the U.S Economy
Required Amount of Capital $1,000,000, or $500,000 - investment in a "targeted employment area" (TEA) ◦ high unemployment area (unemployment of at least 150% - national average rate) or ◦ rural area as designated by the U.S. OMB
Capital• Cash, Cash equivalents and other tangible property.• Loans or “Debt arrangements” – Are not capital contribution; unless secured by investor personal assets (Promissory Note)
Capital Source• Legitimate/lawful source• At Risk • Actual capital commitment • Expended directly towards job creation
Benefit the U.S EconomyNo guidance - “subjective” determination.“Enterprise, in the conduct of itsbusiness, will benefit the U.S economy.”(e.g. enterprise will provide good andservices).
EB-5 Investment Options “Programs”Traditional Program – Immigration Act of1990Regional Center (RC) Program – PublicLaw – 2002. Extended to September 30,2012.
Traditional Program Private investment and Investor directly involved in the management of the business.
Regional Center (RC) Program Entity, organization or agency (private or public) approved by the Citizenship and Immigration Services (CIS); Focuses on a specific geographic area within the United States; and Seeks to promote economic growth through increased export sales, improved regional productivity, creation of new jobs, and increased domestic capital investment.
Traditional vs. RC Traditional RC- Capital - $1 million or - Capital to Invest – usually $500k (TEA) $500k (TEA)- Benefit to the U.S. - Benefit to the U.S. economy economy- Direct full time - Direct and/or indirect full employment time employment- Active participation - Passive participation- Private company - Private and government agencies
Direct EmploymentEmployer/employee relationship betweenthe newly established commercialenterprise and the persons that theyemploy.Traditional and RC
Indirect EmploymentWork outside the newly establishedcommercial enterprise.For Example: employees of the producers ofmaterials, equipment, and services that are usedby the commercial enterprise.-Only RCs
Investor Participation Active Participation - Investor is involved in the “day-to-day management of the business.” (Traditional) Passive Participation (RC)
RC Statistics There are currently 125 Regional Centers approved. Complete list of approved RCs is available at http://www.uscis.gov/eb-5centers Approx. 90-95% EB-5 petitions filed each year, are filed by Investors in RC-affiliated commercial enterprises. There are 156 initial RC Proposals, as well as 34 RC proposals seeking to amend approved RCs, pending initial review with USCIS.
Permanent ResidenceThree (3) steps: Immigrant petition - Form I-526 Immigrant visa (“green card”) petition - Form I-485 or DS 230 Removal of Condition - Form I-829
Immigrant petition I-526 Form• Basis for EB-5 Investor to become Permanent Resident of the United States• File with the USCIS• Processing time – 5 months (in practicality, taking 2-4 months)• Filing fees - $1500
Immigrant (“green card”) petition• Adjustment of Status petition (in the U.S.) - Form I-485• Consular process (outside the U.S.) - Form DS 230Approval – 2 years “conditionalresidence” for investor anddependents (spouse and childrenunder 21 and single).
Adjustment of Status Present in the U. S. in valid non-immigrant status I-485 file with USCIS - 1 per family member (including EB-5 investor) Employment Authorization Document (EAD) Travel Authorization Document Processing time – 2 to 3 months Filing fees $1070
Consular Process• Outside the U. S.• DS 230 form - file with the Department of State (consulate/embassy). 1 per family member (including EB-5 investor)• Processing Times – approximately 3 months (depends on the consulate)• Filing fees $ 404 per application
Removal of Condition Form I-829 90 days prior to expiration of conditional status "substantially met" the established requirement of the I-526 petition (business plan) Continuously maintained investment during the 2 year conditional residence period Filing fees $3750
Termination of Conditional Residence At the end of the 2-year period - If I-526 (business plan) conditions not met Before the 2 years ◦ Enterprise not established, ◦ Established solely to evade immigration laws, ◦ Requirements were otherwise violated.
Approval of I-829 Legal Permanent Resident (LPR) status LPR eligible for Citizenship in 5 years Children under 18 – automatic citizenship
Legal NoticeFacts of each case are different. Theinformation provided here is general innature and should not be relied upon foryour specific situation and is not legaladvice.Consult with an experienced immigrationattorney to get the right advice to secureyour future in the United States.
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Thank You! Badmus Law Firm, PLLC Immigration Solutions at Work11325 Pegasus Street, Suite S-215 P.O. Box 551209 Dallas, TX 75355 469-916-7900 Telephone 469-916-7901 Facsimile firstname.lastname@example.org www.badmuslaw.com