Colorado Regional CenterThe EB-5 Investment - Employment Based ProgramThe United States Congress created the fifth employment-based preference (EB-5) immigrant visa category in 1990 for qualified foreigners seeking to invest in a business that will benefit the U.S. economy and create or save at least 10 full-time jobs for citizens of the United States. Under this program, the qualifying investor secures a permanent visa for himself and his immediate family. The program mirrors similar immigrant investor programs in other countries such as Canada, the United Kingdom and Australia. The minimum required investment is $1 million, although that amount may be reduced to $500,000 if the investment is made in a Targeted Employment Area (“TEA”). In order to be designated as a TEA, the project must be located in either an area of high unemployment (150% of the national unemployment rate) or a city outside of a designated MSA having a population of less than 20,000. EB-5 applicants first receive a conditional green card valid for two years. At the end of that time they must file another application showing that their money was "at risk" during the two-year period and that the jobs have been created. Once that has been approved, they become regular green card holders. To date, over $1 billion has been raised from foreign investors under the EB-5 program resulting in the creation of over 25,000 jobs for U.S. citizens. The EB-5 Regional Center Investment ProgramTo encourage foreign investment in the U.S. economy through the EB-5 category, Congress created an EB-5 pilot program in 1993. The primary purpose of the program was to expand the eligibility for the types of jobs that could be counted for compliance with the program. Under the Regional Center program, Congress permitted the U.S. immigration agency to designate qualified locations as Regional Centers. A Regional Center is a private enterprise or corporation or a regional governmental agency with a targeted investment program within a defined geographic region. The Regional Center designated region may be as small as a few blocks of a city or as large as an entire state. The Regional Center Investment Program allocates 3,000 green cards each year for people who invest in designated Regional Centers. The Program has been renewed several times, and is currently due to expire September 30, 2009. There are several organizations actively working to make the Regional Center Investment Program permanent. The Regional Center Investment Program does not require that the foreign investor's enterprise itself directly employ 10 U.S. workers (as is the case where there is no Regional Center). Rather, an investment qualifies for all of the benefits of the EB-5 program if 10 or more jobs will be created directly or indirectly as a result of the investment. The investments may be pooled in an entity such as a limited partnership or a limited liability company. The Regional Center program aids foreign investors by directing and professionally managing their investment in the designated business and geographic focus of their Regional Center. A Regional Center obtains its designation by submitting a detailed application to the U.S. Citizenship and Immigration Services (USCIS). The application is quite extensive and, in addition to other matters, must state: (1) the kinds of businesses that will receive capital from investors; (2) the jobs that will be created directly or indirectly as a result of the investment of capital; and (3) the other positive economic impacts that will result from the investment of capital. Once USCIS has approved a Regional Center application, an investor seeking an EB-5 green card through the Regional Center Investment Program must make the qualifying investment (i.e., $1 million or $500,000 if in a TEA) within an approved Regional Center. However, the requirement of creating at least 10 new jobs is met by a showing that as a result of the new enterprise, such jobs will be created directly or indirectly. Each investor must go through a rigorous and extensive personal background check in order to be eligible for a visa. Additionally, the investor must provide complete financial information that shows the sources of the funds that are being utilized for the EB-5 investment. As with the regular EB-5 program, qualified investors investing through a Regional Center first receive a conditional green card valid for two years. At the end of that time the investor files another application with USCIS showing that their money was "at risk" during the two-year period and also that the jobs have been created. Once those applications have been approved, the investor and his immediate family become permanent green card holders and can later apply to become U.S. citizens. The Regional Center Investment Program aids foreign investors by directing and professionally managing their investment in the designated business and geographic focus of the Regional Center they select. The EB-5 Investor need not live in the area in which the investment is made and may choose to live anywhere in the United States. A typical foreign investor in a Regional Center investment program is highly educated, a successful business executive or entrepreneur, an accredited investor by the standards of the U.S. Securities and Exchange Commission, and a head of household with a global perspective. Foreign investors' motivations to invest through a Regional Center include their desire to:
At a time when lenders in the U.S. are requiring larger and more significant capital infusion from borrowers, the EB-5 Program provides an excellent source of lower-cost capital that will encourage economic expansion and job creation.
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