Why Are So Many Indians Applying for the EB5 Visa?
February 16, 2023
Many Indian students and professionals in the United States experience genuine stress because of visa issues. Even worse than the H-1 B lottery system is the 15-to-18-year wait for Indian nationals to convert their visas to permanent residence.
So, when the United States government revived the EB-5 Visa Program, a popular green card by investment program, this year, families who could afford the investment and recognized its importance as a valuable tool for legacy planning rushed to take advantage of it.
Considerations for EB-5 Applications
Multiple elements comprise the application procedure. The most important aspect of it is the study of the source of finances. The investor must provide thorough documentation to prove that their $800,000 investment comes from legitimate sources. Any errors here might result in a refusal of your green card. If the money comes from India, it must follow Indian laws, including the Foreign Exchange Management Act and the Liberalized Remittance Scheme (LRS) (FEMA).
Project selection is the second most critical element. Regional Centers provide access to available projects. The first step is to verify if the Regional Center has recently filed for re-certification with USCIS. While the Regional Center has the necessary license, usually the EB-5 fund manager and the developer or project sponsor conduct the bulk of the work in managing the investment and creating new jobs.
It is crucial to check background and performance history before committing money to organizations. When a firm or developer is also trying to raise finance, a conflict of interest might arise if the company or developer also owns a regional center.
Having a reputable EB-5 fund manager who supervises the funds used in the developer's project on your behalf may assist to resolve this issue. The next step would be to determine whether or not the EB-5 project has a concrete business plan, a healthy capital structure, and a vetted econometric report.
Green card applicants must demonstrate that their proposed initiative will create at least ten full-time equivalent employees in the United States economy. The developer has to show they can reliably provide new employment opportunities, ideally at a far higher rate than is needed by regulation. Last, the capital risk of the project must be evaluated. The $800,000 must be "at risk" following regulations. It doesn't always imply putting it in anything unsafe, however.
EB-5 projects from established players are often constructed conservatively, with an emphasis on capital preservation and employment development. These initiatives may provide little profit, but they do an excellent job of preserving money.
Identify projects with past EB-5 experience, robust investor protection procedures, developer equity, and the presence of additional strong investors or lenders. There may be ventures with larger returns, but it is essential to recognize the level of risk involved.
The investment partner you pick should have a client-focused, long-term attitude, not just a transactional one since the EB-5 program is a 5 to a 7-year journey that requires substantial hand-holding.
US immigration lawyers are responsible for analyzing the source of cash and submitting EB-5 visa applications. Engage a lawyer with EB-5 for Indian investors' expertise.
One of the quickest ways to get a green card is via the EB5 program. However, the application procedure is complicated and must be carried out with great care. The first and most important step is to choose reliable partners to go with you.
Note: This website's material is provided for informational purposes only; it does not represent legal or financial advice. Only a certified professional with a complete grasp of all the facts and circumstances surrounding your particular case can give legal or financial advice. Before applying for the EB-5 program, you should consult with a visa attorney who specializes in legal, immigration, and financial matters.