US - Permanent Immigration - Investment
EB-5 [ Questionnaire ]
The EB-5 visa is an investment-based visa which leads to permanent residence. Under the Immigration and Nationality Act of 1990 (INA) 10,000 immigrant visas per year are available to qualified individuals seeking permanent resident status on the basis of their engagement in a new commercial enterprise. Of the 10,000 EB-5 visas available annually, 5,000 are set aside for those who apply under a pilot program involving a Citizenship and Immigration Services (“CIS”)-designated Regional Center.
Size of Investments
Normally an EB-5 investment must be $1,000,000 or more, but the INA allows investments of only $500,000 if the investment is for a business located in a rural area or a targeted employment area (TEA). A TEA is any area which has been certified as having an unemployment rate which is 150% of the national unemployment rate.
Direct Employment EB-5 vs. Regional Center Investments
EB-5 applications can be based on an investment in an independent business or in a regional center. Under the regular EB-5 program, an investor would invest in a new business anywhere in the U.S. Any type of business that employs 10 or more U.S. citizens in full time positions can qualify. A Regional Center is an investment program which has been pre-qualified by CIS. Regional Centers are located in a specific geographic area and focus on one or more investment projects, such as retirement communities, hotel and retail complexes, tourism, agriculture, or technology centers. Regional centers allow investors’ money to be pooled for larger projects, which reduces risk to individual investors and allows a more hands off approach. Nearly all of the regional centers are located in TEA or rural areas, so the investment required is $500,000 usually plus fees.
The primary differences between regular EB-5 investments and regional center investments are:
- Regional centers can use job forecast methodology to show that they will indirectly employ 10 US citizens, while non-regional center investments must directly employ 10 US citizens and show W-2 and I-9 forms to prove employment.
- Regional center investors usually sit on the board of directors for the investment company, but they do not participate in most decision making. Non-regional center investors are usually directly involved in the daily affairs of their investment businesses.
Eligibility
Permanent resident status based on EB-5 eligibility is available to investors, either alone or coming with their spouse and unmarried children under 21. Eligible aliens are those who have invested -- or are actively in the process of investing -- the required amount of capital into a new commercial enterprise that they have established. They must further demonstrate that this investment will benefit the United States economy and create the requisite number of full-time jobs for qualified persons within the United States.
In general, "eligible individuals" include those:
- Who establish a new commercial enterprise by:
- creating an original business;
- purchasing an existing business and simultaneously or subsequently restructuring or reorganizing the business such that a new commercial enterprise results; or
- expanding an existing business by 140 percent of the pre-investment number of jobs or net worth, or retaining all existing jobs in a troubled business that has lost 20 percent of its net worth over the past 12 to 24 months; and
- Who have invested -- or who are actively in the process of investing -- in a new commercial enterprise:
- at least $1,000,000, or
- at least $500,000 where the investment is being made in a "targeted employment area," which is an area that has experienced unemployment of at least 150 per cent of the national average rate or a rural area as designated by OMB;
- can show the source of the funds used for the investment. Evidence of source of funds must include income tax returns for the last five years and should include evidence relevant to the source of funds, such as pay stubs, dividend receipts, closing papers for the sale of property; and
- Whose engagement in a new commercial enterprise will benefit the United States economy and:
- create full-time employment for not fewer than 10 qualified individuals; or
- maintain the number of existing employees at no less than the pre-investment level for a period of at least two years, where the capital investment is being made in a "troubled business," which is a business that has been in existence for at least two years and that has lost 20 percent of its net worth over the past 12 to 24 months.
The benefit of investing in a regional center is that the regional center promoter will take responsibility for the formation and management of the new investment company. Additionally, regional centers can use economic forecast models to demonstrate employment instead of employing people directly.
Applying for an EB-5 Visa
The processes for applying for a visa through a regional center and without a regional center are slightly different.
Steps for applying by investing in a regional center:
- Once an investor selects a regional center he will be asked to complete an accredited investor questionnaire. After he returns the questionnaire to the regional center he will be given an offering memorandum which contains the details of his contract and his relationship with the regional center, including fees, terms, and warranties.
- After the investor approves the terms of the offering memorandum, he places $500,000 (or $1 million in some regional centers) in an escrow account and pays the regional center syndication fees (which can range from $35,000 to $60,000). The $500,000 placed in escrow will not be invested until the immigration application is approved.
- As soon as the $500,000 investment is transferred to the regional center escrow account the investor can then file an I-526 immigration petition with CIS. Processing time is usually 9-15 months.
- Once the I-526 Petition is approved, the $500,000 investment will be transferred to the regional center to be used in the agreed business venture. The application will then be transferred to consular processing if the investor is outside of the U.S. If the investor is inside of the U.S., his attorney will file an I-485 application to adjust status to permanent residence.
- Once approved, the investor will receive conditional permanent residence, which allows the investor and his accompanying family to live, work and study in the U.S.
- Three months before the two year anniversary of the date the investor received conditional permanent residence he must file an I-829 application to remove conditions. The regional center will prepare documents to demonstrate employment creation and to show that the investor has maintained his investment in the U.S.
- Once the I-829 is approved the conditions on the investor’s permanent residence will be removed. He is now a full permanent resident.
Whatcom Opportunities Regional Center (WORC) [Overview]
The Whatcom Opportunities Regional Center (WORC) is designated, by the United States Citizenship and Immigration Services (USCIS), as a Regional Center entitled to participate in the EB-5 Immigrant Investor Pilot Program. This designation enables foreign investors to apply for Green Cards upon making an investment of $500,000 into one of WORC's 'retirement living' developments in Whatcom County Washington.
Immigrant Investor funds invested in WORC, will be used to develop and operate retirement facilities in Whatcom County, Washington. Retirement communities provide independent and assisted living accommodation for senior citizens. Currently, this industry in the United States boasts annual revenues of over $25 billion and shows significant potential for growth – the number of people aged 65 and over in the United States is expected to double between now and 2030.
The WORC investment group will fill a market need in Whatcom County by developing and operating facilities for the increasing number people who will require some level of care and assistance during the final years of their lives.
The WORC Investment Structure
The Investment:
$500,000 ($40,000 syndication fee)
(The $500,000 investments are pooled and invested into a Limited Liability Company that develops and operates the retirement communities.
Profit Distribution:
Investors collectively share 70% of net business and rental income.
Exit Strategy:
At the latter of 60 months or removal of conditions, the investor may choose to withdraw from the investment under various exit scenarios. Exit scenarios could include selling to a national assisted living operator, selling the real estate, or transferring ownership of residences to investors.
This is not a solicitation for investment, nor are T.D. Knowles and WORC business partners or affiliates. Before considering making an investment interested parties should review with the advisors of his/her choice the specific investment terms contained in the WORC Inc. operating agreement and other project documentation.
Why WORC?
The staff of T.D. Knowles has worked closely with the Whatcom Opportunities Regional Center in Bellingham, Washington since the regional center was created. We believe that WORC offers a competitive advantage because:
- WORC has a track record of successful I-526 applications.
- WORC has a history of cooperating with T.D. Knowles to make the application process as quick as possible.
- An investment in WORC is essentially an investment is in real estate, which means your money is invested in a relatively low risk industry that still complies with the EB-5 rules which state that your investment must be at risk and cannot be guaranteed by the regional center.
- WORC ‘s job forecast and investment models follow the strictest interpretation of CIS regulations, which helps to ensure that your I-829 application will be approved.
Who is K. David Andersson?
K. David Andersson is the President and founder of the Whatcom Opportunities Regional Center. He was born in Uranium City, Saskatchewan in 1960. He has a Bachelor of Science (Biology/Chemistry) from the University of Alberta, and a Law Degree from the University of British Columbia. Mr. Andersson is licensed to practice law by the Law Society of British Columbia (1991) and State Bar of Washington (1995). He has represented clients before the Supreme Court of British Columbia, the British Columbia Court of Appeal, the Federal Court of Canada, the Canadian Immigration and Refugee Board, United States District Court and the Executive Office of Immigration Review - U.S. Immigration Court.
Mr. Andersson also serves as the President of the Pacific Corridor Enterprise Council (PACE), an organization concerned with trade and cross border mobility issues. As a representative of PACE, Mr. Andersson has testified before a Canadian Parliamentary Committee on Free Trade in Services, and the U.S. Congressional Government Reform Committee's Sub-Committee on Criminal Justice, Drug Policy, and Human Resources regarding ways to improve security, facilitate commerce and ease travel between the United States and Canada.
For the past decade Mr. Andersson has also served as a director of JCB Canada, a subsidiary of the Japanese JCB credit card corporation.
An active member of the American Immigration Lawyer's Association (AILA), Mr. Andersson is past chair of the Washington State Chapter - Customs and Border Protection Liaison Committee and served as a member the AILA National CBP/Border Policy Committee.
For investors who are not applying through a regional center the process will be more complex. These investors must prepare an investment company, prepare a business plan, manage the business, and most importantly, must keep evidence that they have employed 10 full time employees during the two year period before the conditions on permanent resident visa are removed.