When you’re planning an investment of money, time, and energy as significant as an EB-5 visa project, you want to make sure you’ve got all your legal bases covered. Failure to meet legal requirements can spell disaster for your permanent U.S. residency goals, and no one wants that. So, like any wise investor you’re doing your research, your due diligence, and carefully vetting investment partners. Whether you’re coming from an H1-B visa or are currently still living in your home country, here are the top legal pitfalls in the EB-5 process that you should be aware of – and how to avoid them. We’ll cover potential obstacles related to your paperwork, your funding, and your EB-5 project itself.
Don’t let legal hassles threaten your American dream. Partner with APG for your EB-5 project and invest with greater confidence.
Legal Pitfalls: Your EB-5 Project
The first and most obvious potential pitfall is the project you choose for your EB-5 visa application. If your project doesn’t meet the legal requirements stipulated by the USCIS, it doesn’t matter how perfect the rest of your application process goes. This is where no amount of due diligence is too much. The business you invest your $1,050,000 into (or $800,000 for TEA projects) must not only check the box for creating 10 full-time jobs for U.S. workers, it must also survive the often tumultuous financial and business landscape in the United States.
How to Avoid Project Failure
You’ve got a lot riding on your EB-5 project. Your money (a lot of it), your time and energy, and your future in the United States. But sadly, 18% of small businesses fail within their first year. And the majority of these businesses don’t even have to be successful enough to pay for 10 full time employees! The best way to avoid becoming one of these sad statistics – and lose your permanent residency dream in the process – is due diligence, planning, research, and more planning. If you are going the direct investment route (that is, working the business on your own as the primary owner and manager), you must create a rock-solid business plan that lays out every detail of your project, from market research to financial projections to plans on what to do if things don’t go according to plan. Nothing can be left out, and you shoulder the entire project risk on your own. Business success is never guaranteed, but meticulous planning is the best way to reduce your risk.
However, there may be a better way. Especially if you’re already in the U.S. and looking to take the H1B to EB-5 path, the regional center program offers a very attractive deal. Read on for the details.
Your Best Bet: Regional Centers
Let’s be honest. Not everyone wants to run their own small business with ten employees. There are endless legal and human resources challenges, financial risk, and not to mention time. Small businesses often require most of the owner’s waking hours. If you fall into the category of desiring U.S. permanent residency but not actively running a business, there’s great news. The USCIS regional center program allows immigrant investors to invest with one of these approved centers on a project specifically targeted to satisfy the EB-5 visa requirements. This means you can invest with an experienced partner on a project already aligned with your goals, and you don’t even have to be an active manager. It’s like a dream come true for many EB-5 visa hopefuls.
As an approved regional center with a demonstrated track record of success, Atlanta Partners Group (APG) is assisting EB-5 investors like you every day. Our projects are all TEA (Targeted Employment Area) focused, reducing the investment minimum to $800,000 for our investors. Our projects also have a higher than average historical rate of return, showing our commitment to developing projects that truly fit the description of an investment, and not merely checking a box. APG EB-5 projects are making life – and the whole EB-5 visa process – much easier and far less risky for investors compared to starting and running their own individual small business.
Legal Pitfalls: Your USCIS Forms & Petitions
If you’ve been through the H-1B visa process, you are probably aware that anything having to do with immigration means lots and lots of paperwork. The EB-5 visa process includes a number of forms, petitions, fees, and other requirements outside the actual running of a business. The Form I-526 or I-526E (for regional center investors), I-485 or DS-260, and I-829 are all forms that are part of the EB-5 visa process. Knowing which forms to file, what documents to include, and when to file them are all filled with potential missteps, errors and omissions, and other pitfalls. How do you keep them all straight?
When it comes to completing the USCIS forms for the EB-5 visa, you will have two best friends. The first is a solid legal team. Immigration attorneys, accountants, assistants, and other experienced professionals will help you navigate these forms and documents with precision. Be sure not to cut corners on your professional advice, because their experience and knowledge can save you a lot of time and money. The second is double checking. Review, review, review. Do your own review, have your team review, have your spouse review, etc. The more pairs of knowledgeable eyes the better, as errors and missing or incomplete documents can delay your progress, or even result in a petition denials.
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Legal Pitfalls: Your Funding
When it comes to funding your EB-5 visa journey, it’s not just your initial investment that you need to plan for. Your $800,000 or $1,050,000 merely gets you in the door. You will need to plan for legal and accounting fees, the fees that go along with the USCIS petitions and forms, and of course, how you and your family will pay for life before the business becomes profitable. Work closely with your accountant to plan for all the expenses and ensure you’ve got enough to cover everything.
You can also encounter pitfalls related to your initial funding amount. You must be able to prove that your $800,000 or $1,050,000 was obtained through legal means. The USCIS does not allow for sloppy paperwork when it comes to proving the lawful source of funds, and a failure in documentation can spell doom for your petition approval. Ensure that you’ve got a solid paper trail for your funds, and if you’re borrowing any of the money for the project, ensure that the loan is not secured by any of the actual assets of the EB-5 project itself. The loan can be secured by other assets you personally own, but not the EB-5 project assets. Document, document, document and you’ll navigate this potential pitfall with ease.
Will You Be 1 in 10,000?
The USCIS approves a maximum of 10,000 EB-5 visas per year, and if you’re ready to be one of those 10,000, Atlanta Partners Group is excited to be part of your journey toward U.S. permanent residency. As an experienced approved regional center, APG has project offerings opening consistently that are ready-made for immigrants seeking EB-5 visa status. Our staff knows the ins and outs of the investment process and is ready to help you make this potentially rocky road to success a little smoother, hopefully a little faster, and a lot less stressful! Contact us today and learn more about what APG can do for you.
