Since 1990, the EB-5 Investor Program has provided thousands of pathways to citizenship for foreign investors. Unfortunately, the program is laden with rules, and many foreign investors do not understand what is and what is not guaranteed by the program. While the program holds great potential, investors may be apt to believe the only requirements are hiring an EB-5 attorney and providing the funds in exchange for the appropriate number of visas. Unfortunately, misconceptions continue to the surround the program, reports Lauren A. Tatenbaum, and understanding these misconceptions is critical to taking advantage of the program.
Misconception 1. Lawful Permanent Residence Is Guaranteed.
An at-risk investment and available funds do not guarantee acceptance into the EB-5 Program. Foreign nationals must complete an I-526 petition, and he or she must wait until an employment-based visa is available. At this point, the green card may be approved or rejected.
Misconception 2. EB-5 Investments Hasten Approval of Green Cards.
Most foreign nationals see the EB-5 Program as the fastest way to obtain a green card. In reality, the approval process for the I-526 petition may take 14 months, if not longer. Meanwhile, the US Department of State continues to use a ranking to determine if visas are available, when they will be available, and when the applicant originally filed. In other words, going through each process could take years to complete, and a traditional pathway to residency may have a similar timeframe.
Misconception 3. Only Wealthy Foreign Nationals Have Access to the EB-5 Program.
The minimum investment into the EB-Program is $500,000. However, foreign nationals who received their funds via inheritance, gambling winnings, gifts, collection of their life-savings, or loans may also apply to the program.
Misconception 4. The EB-5 Program Does Not Benefit Anyone Besides the Foreign National.
Congress created the EB-5 Program to stimulate the economy through the addition of jobs. Every job created by way of EB-5 investments reveals how broad the benefits of the EB-5 Program extend.
Misconception 5. The EB-5 Program Has Minimal Security Checks.
The EB-5 Program is actually the opposite. A proposed project must meet security checks, and all applicants to the program must undergo rigorous background checks throughout the process. Furthermore, all funding sources must be thoroughly reviewed for legitimacy.
Foreign nationals may be considering the EB-5 Program as a way to achieve their American Dreams. However, the program is much more intensive than most realize, and many opt to hire an EB-attorney to assist with the process. To learn about EB-5 requirements, contact David Hirson & Partners, LLP, online or by phone at 1-949-383-5358 today.