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Category Archives: EB-5 US Investor Visa

July 28, 2018

Of late a large number of regional centers have entered into the EB-5 market, offering a variety of investment choices to investors. This has resulted in investors becoming more and more confused regarding the most appropriate investment option most suitable to their needs and long term goals.

I regularly meet clients who have a very sound financial background, yet are completely lost when choosing the right EB-5 investment.

Here are the three most common offerings in the EB-5 market at present:

  1. DEBT Model:

98% of the offering in the EB-5 market is using this model. This model involves three entities:

(i) The company who has been granted the ‘Regional Center(RC)’ approval

(ii) The developers who have incorporated a company or LLP -1 for the project, and

(iii) Another LLP-2 which is used as an investment vehicle for EB-5 purposes.

As an investor, you will be making investment in LLP-2 which will loan fund to LLP-1. In return, LLP-1 will give credit for all jobs created in the project to LLP-2so as to meet the mandatory ‘Creation of 10 jobs’ requirement of the EB-5 program.

Investment is generally made for a period of 5 years and at the end of 5 years, the capital is returned to the investor by taking a second mortgage.

LLP-1 also offers interest to EB-5 investors which can be in the range of 1%-4% per annum. Ideally, if all these three entities are managed by one single developer company, then this particular EB-5 project can be considered a good selection.

However, in reality, we see that RC approval is obtained by one entity, which then seeks out a developer to develop the project and an entirely different third company is involved in marketing the project. If you do adequate research you will find that there are very few developers who are directly involved in the marketing of their project.

In these type of projects, the local banks havethe first claim, promoters have second claim and EB-5 investors have the last claim to receive any money in the event of project failure.

  1. EQUITY Model:

Very few companies are currently offering the equity option for EB-5 investment. In this model, only one company or LLP is created by developers of the project and EB-5 investors are required to make an investment in this particular LLP only. EB-5 investors give the managing rights to the developers. In this model, the investors are not given any fixed returns but are offered a percentage of the profits as and when the project becomes profitable, while the developers take only a small portion of the profit.

In this model, the risks are higher but returns can be as high as 10%-12% per annum. Some of the hotel projects for which our law firm has raised EB-5 investment capital were based on this model and have consistently given good returns.

In many EB-5 projects, there are no loans from local banks or lenders except bridge loans. Because of this, the properties are mortgage-free right from day one and chances of failureare very low,while those of good returnsare very high.

In case the project fails, the capital can be distributed amongst all the EB-5 investors as compensation since there is only one class of investors.

  1. FUND Model:

Quite a few RCs are offering this model now. In first two options, there is one project and one company or LLP. In the Fund model, a fund of a certain predetermined amount is created to loan money to several projects and hence the risk is distributed equally among several projects. An annual fixed return is given to investors which can be in the range of 1%-3%.

Simply put, the first model can be compared to a debenture, the second one to a share investment and the third one to a mutual fund investment. Each model has its own pros and cons. However,the bottom line is that a viable EB-5 project must have good developers who have a successful track record in non-EBB and EB-5 project development.

This article outlines very general information regarding EB-5 investment options for the sole purpose of easy understanding for investors at large. Each investor must seek appropriate legal advice and consult their financial advisers before making any kind of the investment.

July 14, 2018

EB5 Investors Magazine is organizing in Los Angeles EB-5 Convention at The Westin Bonaventure Hotel and Suites on July 23-24, 2018.

This two-day educational, networking event will host a gathering of broker-dealers, developers, immigration and securities attorneys, migration agents, regional centers and other EB-5 program stakeholders.

The conference not only about EB-5 but speakers and panelist are coming from all over the world to talk about Residency & Citizenship program of various countries.

The event will also feature special guest speakers and sponsorship opportunities.

The lawyer from our law firm Mr. Prashant Ajmera will be speaking at this conference as one of the panelist speaker at India : Market Spot Light. www.ajmeralaw.com

More information about this conference can be fond at Read More

July 10, 2018


Doing business or Investing in USA: Nine different options for Indian businessman

This is a very simple way to explain, how one can make an investment in the USA or do business in and with the USA.

  1. Simple export of goods and services to USA consumer or business.
  2. Making an investment into an existing business, land building, or farming land and become partner/investment. You do not any visa of the USA and you don’t get any visa by just making a simple investment.
  3. Purchase of Real estate in the USA – any type of visa not possible but can take benefit of rental income and capital gain.
  4. Register a company in the USA, open an office in the USA, a bank account in the USA in person, hire local people to run the business. No Person is transferred from India to the USA.
  5. Register a new company in the USA, open a subsidiary office in the USA, a bank account in the USA, hire local people to run the business with a definite business plan and KEY PERSON(S) IS TRANSFERRED from India to the USA. This is an L1 visa. A person is a senior executive and Technical Person to be transferred from the USA. The American company will be a  subsidiary of the Indian company.
  6. Indian company taking over 51% of the USA company and by join venture, Indian CEO or Key technical person transferred to the USA under EB-1-C Visa class.
  7. Starting a NEW business in the USA, hire 10 people and make an investment of 1 million US$ and investor, his spouse and children under 21 can get a green card of USA. – This is an EB-5 direct investment.
  8. Starting a NEW business in the USA, hire 10 people and make an investment of 1/2 million US$ and investor, his spouse and children under 21 can get a green card of USA. This business must be in an area where there is high unemployment or a population is less than 20,000. This is EB-5 under the Regional center class.
  9. You make an investment in Real Estate and become a citizen of another country like Grenada, Turkey, Canada and then apply for an E2 business visa of the USA to do business in the USA.


December 5, 2017

USA green card by investment – EB-5 Visa:

Investment can be made as Debt or Equity or Fund

The EB-5 Visa provides the most flexible path to a Green card and is based on investment in the US. The EB-5 Visa does not require the applicant to manage the day-to-day affairs of a business. One may invest in an existing business or a new business. More than one person may invest in the same business. The EB-5 investor may be a minority owner of the business.

One may qualify for an EB-5 Visa by:

  1. Investing One million dollars and hiring ten employees anywhere in the USA.
  2. Investing $500,000 US and hiring ten employees in an area where the unemployment rate exceeds the national average unemployment rate by 150%.
  3. Investing in a regional center.

The INS has designated specific areas, called Regional Centres, as eligible to receive immigrant investor capital. The INS has approved over 520 Regional Centres. Regional Centre investors may rely on indirect job creation rather than directly hiring ten employees. A competent professional, such as an economist, must quantify the indirect employment. If the regional center is in a high unemployment area, the required capital is reduced to $500,000 US. Presently there are projects underway in many regional centers whereby making an investment of $500,000 in a limited partnership can qualify an individual for applying for a green card through the USA EB-5 investor program.

Out of the 10,000 Investor visas (EB-5 Visas) available annually, 5,000 have been set aside for those who apply under a pilot program involving an INS-designated “Regional Centre” To date, this quota has not been exceeded.

EB-5 investors include people from all walks of life – professionals, business people, persons wanting to facilitate a child’s education, and retirees. Because the EB-5 Visa permits employment in the US, many EB-5 investors become involved in charity or part-time work. Simply put, the EB-5 visa gives you the flexibility to do what you want in the USA.

Our firm has identified several regional centers that offer investment as Debt which is a loan to a business, Equity in which investor is a partner in the business, or Fund investment in which fund is created to loan several businesses and risk is minimized.

Make an investment in the EB-5 project with confidence.

Do not do an analysis of the EB-5 project but find the right immigration lawyer in India and the USA who can assist you to navigate the whole process of EB-5.