A US visa category offers you quicker route to a Green Card. But you have to make an investment and staff people.
If you don’t want to wait years on end for a Green Card in the US, there is a quicker route -- the EB5 immigration visa. But it comes with a rider, you have to create jobs and invest money in the US.
The EB5 is an immigration visa that gets families a permanent Green Card in return for an investment of either $500,000 or $1 million and proof that the investment has created 10 direct or indirect jobs. It provides a short-cut to a conditional Green Card – a permanent resident card that allows an alien to live permanently in the US -- within a year of applying, which can take about three years to convert to a permanent one.
“The programme facilitates foreign entrepreneurs’ capital investment that creates or preserves US jobs by supporting the establishment of new commercial enterprises or assist troubled US-based businesses in economically distressed areas,” Stephanie Ostapowich, public affairs officer, Office of Communications, Media Relations Division, US Citizenship and Immgration Services (USCIS) said.
A Green Card through other visa categories can take up to several years. Recent reports by the National Foundation for American Policy, which tracks immigration data, show that getting a Green Card for Indians who have received a university degree from the US can even take up to 70 years given the large number of visa-seekers and the limited number of visas available. Indian Green Card seekers who have a degree from an American University need to apply in the EB3 visa category.
A Green Card through other visa categories can take up to several years. Recent reports by the National Foundation for American Policy, which tracks immigration data, show that getting a Green Card for Indians who have received a university degree from the US can even take up to 70 years given the large number of visa-seekers and the limited number of visas available. Indian Green Card seekers who have a degree from an American University need to apply in the EB3 visa category.
THE PROSPECTS
“Failure to retain these talented individuals in the United States means they will go to work for global firms in other countries or US businesses will need to place them abroad, pushing more work outside the United States,” Stuart Anderson, the author of the report released earlier this month said.
Though the EB5 visa was created by the Immigration Act of 1990, lack of awareness and the complexity of the investment has kept Green Card seekers away. Investment experts like Greg Wing, the managing director of Green Card Fund, have now recognised this as an option to help start-ups in the US get funds.
“Failure to retain these talented individuals in the United States means they will go to work for global firms in other countries or US businesses will need to place them abroad, pushing more work outside the United States,” Stuart Anderson, the author of the report released earlier this month said.
Though the EB5 visa was created by the Immigration Act of 1990, lack of awareness and the complexity of the investment has kept Green Card seekers away. Investment experts like Greg Wing, the managing director of Green Card Fund, have now recognised this as an option to help start-ups in the US get funds.
However, things are changing with the visa gaining attention of both American businesses and government. Since the spectre of a global downturn resurfaced, Wing has been getting calls from businesses who would like to get EB5 funding several times a day.
Which is also why Wing is now visiting Indian shores, to create awareness about the mechanism and raise millions of dollars from Indians in return for giving them a chance to live the American Dream.
“Since the economy worsened, I have been getting several calls for this route of funding. I just tell most of them not possible that businesseses are too risky,” he said. In the past 3 to four years the US government too has been promoting the EB5 visa actively by bringing in more clarity on regulations around the investments.
Investment under the EB5 category can be made in any project in the US, across industries. Visa-seekers can buy an existing business and run them, help troubled businesses, start their own business or give the money to regional centres like Wing’s that can identify the projects and make the investment for them. Applicants get a temporary Green Card after applying for an EB5 visa and making the investment and this is converted to a permanent Green Card once the applicant can prove that the investment has created jobs.
If the investment is made through a regional centre which takes up projects in areas where the unemployment rate is 150% of the national average, the required investment has to be $500,000 while a direct investee would have to invest $1 million.
The visa category though has seen a tepid response from Indians. Globally there are 10,000 such visas available but not more than 50% of them have been utilised in any year with the maximum being snapped up by wealthy Chinese citizens.
The visa category though has seen a tepid response from Indians. Globally there are 10,000 such visas available but not more than 50% of them have been utilised in any year with the maximum being snapped up by wealthy Chinese citizens.
Last year, 900 Chinese applied for this visa, pumping in $400 million into various businesses in the US, while the total count for India stood at 60. The businesses that have attracted these investments range from real estate firms making high-end condos and resorts to IT firms and steel companies.
Wing, however, says during his visits to India he has seen the highest level of interest from high net worth individuals whose primary motivator has been getting their children educated in the US. Other reasons include starting a business or retiring near family that might already be in the US. “In India, the reasons for wanting to live in the US are very benign compared to some other countries.”
Wing, however, says during his visits to India he has seen the highest level of interest from high net worth individuals whose primary motivator has been getting their children educated in the US. Other reasons include starting a business or retiring near family that might already be in the US. “In India, the reasons for wanting to live in the US are very benign compared to some other countries.”
Centres like Wing’s are reaching out to these industrialists and businessmen through industry bodies.
In one city they went though the chamber of industry and commerce while in the other they did an awareness session with a group of chartered accountants who will pass on the message to their clients. The centre has seen the maximum interest in Surat, 85 people showed up at one such awareness event. In Nashik it met sugar industrialists. While the return on investment is minimal and investors get back their money within 3-5 years, Wing sounds a note of caution.
THE CHALLENGES
“It is very important to have done proper risk analysis around the investment. You don’t want your money going down the drain and not even get a Green Card at the end of it because the investment failed to meet norms,” he said.
“It is very important to have done proper risk analysis around the investment. You don’t want your money going down the drain and not even get a Green Card at the end of it because the investment failed to meet norms,” he said.
Data from the USCIS says rate of rejection for granting the visa has been declining. In the first three quarters, only 7% of the application for converting the conditional Green Card to permanent Green Card has been declined.
Wing’s Green Card Fund only invests in healthcare and education firms, which the organisation believes are two of the safest sectors and that too those that have some form of government funding. Wing has been able to return investments within 28 months on an average. Apart from the risk on the investment, immigration experts also point to other challenges like documentation and a lengthy process. There has also been lack of clarity on the visa so far.
“The economic analysis required for this is not easy and there are simpler visas if you are eligible where you do not have to make any investment and get a Green Card quickly. EB5 makes sense if you are not eligible for other visas,” Rajiv S Khanna, managing attorney at The law offices of Rajiv Khanna, a Washington-based law firm. In the past one year, Khanna has helped two India citizens with get a Green Card through the EB5 route.
Pathway to the Big Beautiful American Dream
Pathway to the Big Beautiful American Dream
WHAT IS IT
• The EB5 visa is an immigration visa that gets families a permanent Green Card in return for an investment of either $500,000 or $1 million and proof that the investment has created 10 direct or indirect jobs
• The EB5 visa provides a short-cut to a conditional Green Card – a permanent resident card that allows an alien to live permanently in the US -- within a year of applying, which can take about three years to convert to a permanent one
HOW IT HELPS
• The programme facilitates foreign entrepreneurs’ capital investment that creates or preserves US jobs
• Investment under the EB5 category can be made in any project in the US, across industries.
• Visa-seekers can buy an existing business and run them, help troubled businesses, start their own business or give the money to regional centres that can identify the projects and make the investment for them
• The EB5 visa is an immigration visa that gets families a permanent Green Card in return for an investment of either $500,000 or $1 million and proof that the investment has created 10 direct or indirect jobs
• The EB5 visa provides a short-cut to a conditional Green Card – a permanent resident card that allows an alien to live permanently in the US -- within a year of applying, which can take about three years to convert to a permanent one
HOW IT HELPS
• The programme facilitates foreign entrepreneurs’ capital investment that creates or preserves US jobs
• Investment under the EB5 category can be made in any project in the US, across industries.
• Visa-seekers can buy an existing business and run them, help troubled businesses, start their own business or give the money to regional centres that can identify the projects and make the investment for them
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