The Frequently Asked Questions listed below are for general informational purposes only and should not be construed as professional legal and/or financial advice. Please consult an attorney and/or qualified financial expert before choosing any EB-5 investment.
Frequently Asked Questions
Q: What is the Immigrant Investment (EB-5) Visa Program?
A: The EB-5 visa category was created as part of the Immigration Act of 1990. In general, the EB-5 program requires a foreign national to invest either $1,000,000 USD or $500,000 USD within a rural or Targeted Employment Area in a new or existing business enterprise that results in the creation of ten (10) net new full time jobs. A successful applicant can earn permanent residency for him or herself, a spouse and children under age 21.
Q: How many EB-5 visas are available?
A: The EB-5 program allocates 10,000 visas per year for foreign investors and their dependent family members, whose qualifying investments result in the creation or preservation of at least ten (10) new full-time jobs for U.S. workers.
Q: How many jobs need to be created?
A: The EB-5 Visa investment must create at least ten (10) new full-time jobs for US citizens (or an individual lawfully authorized to be employed in the United States), but does not include the investor, investor’s spouses or children. The 10 new positions must be full time. This means employment of a qualified employee in a position that requires a minimum of 35 working hours per week.
Q: Who is a typical EB-5 investor?
A: EB-5 investors come from a variety of countries and include people from all walks of life; professionals, business people, retirees or people who may want to facilitate a child's education.
Q: MAG Ventures will invest in what types of projects?
A: The MAG Ventures Regional Center focuses on job creating projects in the following industries:
1. Mixed use real estate developments
2. Hospitals, medical offices and laboratories
3. Hotels, restaurants and retail
4. Advanced technology and energy
5. Manufacturing, distribution, logistics facilities
6. Public buildings and infrastructure
Q: Is the foreign investor’s investment guaranteed?
A: No. The law requires an "at risk" investment without guarantees or redemption rights.
Q: Is EB-5 a true passive investment?
A: The EB-5 regulations require involvement in management or policy making. The regulations deem a limited partner in a limited partnership, which is properly structured and that conforms to the Uniform Limited Partnership Act as sufficiently engaged in the EB-5 enterprise.
Q: What is the United States Citizenship and Immigration Service (USCIS)?
A: USCIS is a division of the Department of Homeland Security. USCIS is a government agency responsible for the overseeing the implementation, administration of immigration and naturalization laws, rules and regulations, functions and policies in the provision of services.
Q: What is the difference between regular EB-5 immigrant investor program and EB-5 regional center pilot program?
A: The direct EB-5 immigrant investor program requires the petitioner or investor to directly create full-time employment for at least ten (10) U.S. citizens or authorized immigrant workers. They typically manage all of the documentation and reporting themselves.
The EB-5 Regional Center Pilot Program, which has been in place since 1993, allows the petitioner or investor to directly or indirectly create full-time employment for at least ten (10) U.S. citizens or authorized immigrant workers. The regional center often facilitates the investment and typically manages all of the documentation and reporting that is required.
Q: Does the foreign investor need to prove that their money for the investment has been legally obtained?
A: Yes. This is a USCIS requirement and the investor must demonstrate proof of source of the investment funds. This can typically be verified through bank statements, income statements, tax returns, real estate contracts, court records or other documents.