EB-5 Foreign investor visa program
What is a Regional Center?
In the mid 1990’s a pilot program which created the Regional Center was passed into law.
The Regional Center program allows U.S sponsors to create investment opportunities in which a foreign investor could invest their funds and obtain U.S residency.
Through the creation of jobs and foreign capital investments the Sponsor promotes economic growth.
Development of Regional Center
Regional Centers are developed by U.S Sponsors
- This usually requires a $1 million investment per investor unless situated in a Targeted
Employment Area (TEA)
If TEA $500,000
- Job Creation Requirement (10 Full Time Workers) Direct or Indirect
- Rural area with a population of 20,000 or less; or
- An area where the unemployment rate is no less than 150 percent of the U.S. national average.
Towns or areas with where unemployment rates are high.
Examples of Regional Center Projects
- Mixed Hotels (Condo Hotels), Office, Retail or Residential Space
- Higher Education
- Health Services (Hospitals, Research Facilities)
- Ski Resorts
- Commercial Office Space
Benefit to Foreign Investors
- Job creation requirement becomes the responsibility of the Regional Center Sponsor not the investor.
- Investor not in charge of the day to day management of Regional Center
- If project is an established, reputable Regional Center it is easier for investors to get their residency status.
“New” Commercial Enterprise
A foreign investor may also qualify for residency by investing in a “new” Commercial
- Creating a new business
- Expand an existing business
- Purchase an already existing business; or
- Save a failing business
Development Requirements for CE
- Job Creation (10 Full Time U.S Employees).
- Jobs must be created within a 2 year period of CE.
- Investor must actively manage the investment.
- Capital Investment
Benefits to Investors
- Flexibility – investor can to in what industry to invest and choose the location of the business
- Control and involvement in the day to day management and operation of the business
- Ability to choose their team (Management, Attorney, etc.)
Successful vs. Failed Projects
Successful EB-5 Projects
- Lake Buena Vista Resort Condo – Hotel
- Managed by experienced industry professionals
- Investors go through an eligibility process
- Initial Conditions have to be met
- Funds are places in Escrow
- Company will return funds if conditions not met investor (subscriber)
- Jay Peak Development (Ski Resort)
- Federal Officials, along with Vermont Officials, allege that Miami businessmen, Ariel Quiros and his partner, resort CEO Bill Stenger, orchestrated a “Ponzi” like scheme of Fraud.
- Quiros used over $50 million for personal use
- Largest Fraud in Vermont History
- $200 Million raised from investor misappropriated
- No overwatch by state agencies
- Criminal Probe Ongoing
- What happens to the foreign investors residency process when an EB-5 Project fails as in the Jay Peak development in Vermont?
- Investors ONLY recourse is to sue for compensatory and punitive damages
- If any of the investors who had received conditional residency, unable to remove conditions, will lose their Green Cards
Working with an efficient attorney specializing in personal injuries could guarantee
- The future of the EB-5 program is very promising as an increasing number of people are becoming aware of its existence and benefits
- The EB-5 program is a win/win platform for our economy, U.S sponsors and foreign investors
- Regional Center developer sponsors need to create a team of experienced industry professionals to minimize risks for investors and build a reputable RC
- Real Estate Attorney
- SEC Attorney
- Immigration Attorney
- Experienced Management
So, call us,
we are the right choice!
Contact us today for wise counsel in matters of EB-5 Foreign investor visa program. Our law firm proudly serves clients in all of Central Florida, including Orlando and the surrounding cities.