EB5 BRICS, LLC: An overview of EB-5 U.S. Investor Visa Program

EB-5 U.S. Immigrant Investor

Visa

Presented by Vivek Tandon, Esq. Founder & CEO EB5 BRICS, LLC

What is EB-5?

• The United States Citizenship and Immigration Services

(USCIS) administers the Immigrant Investor Program, also

known as “EB-5.” The EB-5 visa category was created by

the United States Congress in 1990 to stimulate the U.S.

economy through job creation and capital investment by

foreign investors.

Continued...

• Through the Immigration Act of 1990 Investor VISA

Program, Congress enacted the Immigration Act of 1990,

which includes a program permitting foreign investors to

obtain permanent residency in the United States.

Continued...

• Section 121(b)5 of the Act created a new investor

immigrant visa category aimed at generating a significant

inward flow of foreign capital and creating jobs for United

States workers. The new legislation makes 10,000 Green

Cards of permanent residency available nationwide each

year for qualified immigrant investors.

Continued...

• The underlying policy of the EB-5 investor visa is to

benefit the United States economy overall including

United States communities that are economically

disadvantaged, United States workers, and the foreign

national investors. The goal of the EB-5 investor visa

program is to generate a “win-win” scenario for all parties

involved or affected.

What are the requirements of EB-5 Visa?

In order for an applicant to qualify under the EB-5 Investor

Visa Program three basic requirements must be met:

• Investment in a new business.

• Investment of at least $1 million (or $500,000 in certain

cases) into the business.

• Creation of employment for at least 10 full-time U.S.

workers.

How does an investor make an EB-5 investment?

Two different option are available to Investor applicants for

fulfilling EB-5 investment requirements:

• Direct Investment OR

• Regional Center Investment

OPTION 1: Direct EB-5 Investment

• Investment in a new business and creation of employment for at least 10 full-

time U.S. workers.

• The investment may consist of various forms of capital, such as cash

(including a gift or loan), equipment, inventory, property, and other tangible

equivalents. An investment amount of $1 million is generally the minimum.

However, $500,000 is acceptable if the business is situated in a “targeted”

employment area, i.e., one that has experienced unemployment of at least

150% of the national average rate or a rural area.

Types of Direct EB-5 Investments

• Franchises

• Restaurants

• IT technology and/or services company

• Retail products and/or services company

• Car Wash/Trucking Company

• Other businesses

Direct EB-5 Investments - Considerations

• Identification of a good business opportunity that has the potential to sustain

itself and create and maintain 10 full-time jobs over 2-3 years

• Ability to run a business in the US while on a B1/B2 visitors/business visa

• Getting approval for the I-526, Immigrant Petition by Alien Entrepreneur if

only an EB-5 application is filed along with an EB-5 compliant business plan

but no real operations in place

• If business is started prior to filing I-526 then finding a competent and

trustworthy manager or CEO since investor is in home country

OPTION 2: Regional Center Investment

What is a Regional Center?

A Regional Center is any economic entity, which is involved

with the promotion of economic growth, improved regional

productivity, job creation, and increased domestic capital

investment.

How does an entity become a Regional Center? Apply to the USCIS for Regional Center approval and show:

• How the Regional Center plans to focus on a geographical region within the

United States and promote economic growth in that region.

• How, in verifiable detail (using economic models in some instances), jobs will

be created directly or indirectly through capital investments made in

accordance with the Regional Center’s business plan.

• The amount and source of capital committed to the Regional Center and the

promotional efforts made and planned for the business project.

• How the Regional Center will have a positive impact on the regional or

national economy.

Types of Regional Center Investments

• Commercial development projects such as office buildings and

hotels

• Mixed-Use developments such as restaurant, retail, office and

residential complexes

• Re-development projects

• Residential developments

• Other infrastructure related projects

Regional Center Investment - Considerations

• Generally a loan-based model with no ownership of the project or everyday

control and management (unless a direct equity investment wherein an

investor applicant ‘buys’ a share in the project)

• Low-risk project = Low or no return on investment

• Investment capital at-risk and blocked for 5-6 years or more

• Burden to create 10 full-time US jobs is on developer/borrower

Regional Center Investment - factors to consider • Regional Center team and track record

• Current projects

• Past projects

• Position of EB-5 investor in relation to other lenders to the ‘project’

• Financial viability of the project

• Regulatory (SEC and FINRA) compliance

• Regional Center’s relationship with the developer/borrower

• Job Creation model for the project

• Immigration compliant business plan

• Economist report

“At Risk Investment”

It is not sufficient that the investment is made out of lawfully generated funds, the

intent to invest must be accompanied with the understanding that the capital must

be at risk; hence there must be a risk of loss or a chance of gain. Any agreements

or understanding between the commercial enterprise/new entity and the investor

which state that the investment may be redeemed or assured return will not satisfy

the requirement of the capital being at risk.

Job Creation

• Every EB5 applicant shall be required to create or preserve* at least 10 full time jobs for

qualifying US workers within two years i.e. during the period in which he has been

granted Conditional Permanent Residency.

• These jobs can be direct or indirect; direct jobs are actual identifiable full time jobs for

qualified employees (Full time employment means a minimum of 35 working hours per

week for qualified employees meaning a US citizen, permanent resident or other

immigrant authorized to work in the United States) within the commercial enterprise into

which the EB5 applicant has directly invested, whereas indirect jobs are jobs which are

created collaterally due to the capital investment in an enterprise affiliated with a

Regional Center.

What is the EB-5 process and timelines?

The procedure for obtaining an EB-5 Investor Green Card is best handled by a

team of legal and financial/investment professionals who can help you navigate

the various stages of the process.

• The investor submits an I-526 application, prepared by an experienced and

licensed U.S. immigration attorney, accompanied by documentation to

substantiate the source of investment funds.

• The funds can be the investor’s own money or in the form of a loan not

secured by the EB-5 investment or a gift, which would allow a parent to gift

the funds to a son or daughter.

Continued... • After the investor completes their due diligence (preferably with the help of a

licensed and EB-5 experienced U.S. financial/investment advisor and/or

securities broker-dealer) on the EB-5 project or business, the investment is

made and an investor I-526 petition is filed with USCIS, requiring USCIS to

certify that the applicant and the investment are eligible for EB-5 status.

• The approval of the I-526 petition takes on average 12-14 months. Once

USCIS approves the investor’s Green Card, it is conditional for a period of 30

months (two and a half years).

• Conditional Green Card status confers the same rights as the permanent

unconditional Green Card.

Continued... • I – 485 (Optional) If the investor is located in USA, the intending immigrant can adjust

status by filing Form I -‐485 and in case where he is located outside USA, he can apply

for Conditional Permanent Residency by going through with the Consular Processing.

• Consular Processing On approval of the I – 526 petition the file is forwarded to the

National Visa Center, the intending immigrant must file DS-‐260 and supporting

evidence with filing fees. One part is filled by the intended immigrant and the other part

is filled in front of the consular officer at the Consulate.

• After receiving approval at the consular interview, a six month immigrant visa is given.

When the intending immigrant enters USA, his passport is stamped with the Conditional

Residency stamp.

Continued...

• Between 21-24 months after the conditional Green Card has been approved,

the investor must reconfirm that the investment has been made or is still in

place and that the employment requirement has been fulfilled or maintained.

• I -‐829 (Current Processing Time as on USCIS website – 11.4 months) The

immigrant who has gained a Conditional Permanent Residency shall file this

Form to remove the conditions on their Green Card along with the required

filing fees. After being satisfied that enterprise fulfils the creation of ten full

time job requirement for the investor, the Green Card shall be granted to the

applicant and his family.

Continued...

• Once the condition has been removed, an unconditional Green Card is

granted for permanent resident status in the United States.

• From the time of application for the conditional Green Card until approval of

the Removal of Conditions, is approximately four years.

• Thereafter, in approved Regional Center programs, depending on the terms

of the agreement, the investment may be sold, and the investor will maintain

the permanent Green Card.

U.S. Citizenship

• U.S. Citizenship is possible approximately two and a half years later (a total

of five years after approval of the conditional Green Card), upon satisfaction

of U.S. residence.

EB-5 Investor Visa Program Benefits • Direct route to permanent residency in the United States for Investor, his/her spouse,

and any children under the age of 21.

• Freedom for Investor and family to live, work, and retire anywhere in the United States.

• Investor and his/her spouse and children may attend college or university at U.S.

resident costs.

• Investor and immediate family may travel to and from United States without a visa.

• Route to U.S. citizenship for Investor and immediate family after five years of

permanent residency.

• Investor receives all benefits of U.S. permanent residency status, including ability to

develop and run his/her own business.

• Ability for Investor to sponsor green cards for family members.

DISCLAIMER

• Please note that nothing that you have heard or read today should be

construed as legal advice.

• No attorney-client relationship is established between you and EB5 BRICS,

LLC or Vivek Tandon by downloading, reading or listening to this presentation.

• This presentation is strictly for information purposes only.

• NO OFFER TO SELL ANY SECURITY OR INVESTMENT IS MADE BY THIS

PRESENTATION.

For more information...

VIVEK TANDON, Esq. +1(213) 394-5527 [email protected]

Vivek Tandon is the Founder and CEO of EB5 BRICS – the go to source for everything

related to EB-5 U.S. Immigrant Investor Visa (Green Card) Program. A lawyer and an

investment banker, Vivek’s primary focus is on educating investors in India, Mexico and Brazil

about EB-5 Visa Program and EB-5 regional center projects and EB-5 direct investments.

Vivek holds Financial Industry Regulatory Authority (FINRA) and U.S. Securities and Exchange

Commission (SEC)securities licenses and is associated with a registered broker-dealer NMS

Capital Advisors, LLC – a Beverly Hills, California based global, privately held, independent,

diversified financial services firm providing investment banking, asset and wealth management

and EB-5 consulting services.