Despite some recent backlash against immigrants in America, the United States’ economic landscape has been transformed by immigrant investors in the last thirty years. A study by the National Foundation for American Policy in 2016 found that just over half of U.S. startups worth over $1 billion—including WhatsApp, Uber, and SpaceX—were founded by immigrants. These companies have created thousands of American jobs. With so much potential for success waiting in America, it can be very enticing for foreign entrepreneurs to make their home here. This is where the EB-5 visa comes in.

EB-5 Program Summary

The EB-5 Program was established by the Immigration Act of 1990 to boost the U.S. economy and job market with investment from foreign individuals. The program has been a success, with thousands of foreign investors legally migrating to the United States and creating hundreds of thousands of American jobs. However, some cases of fraud—including the recent high-profile misuse of investor funds in Vermont—have raised concerns, prompting some lawmakers to ask for the program’s discontinuation. Nevertheless, the EB-5 visa continues to be a popular option for immigrants and their families.

EB-5 Visa Requirements and Eligibility

To qualify for the EB-5 Program, a foreigner must invest at least $1 million in a U.S. commercial enterprise, or at least $500,000 in a business located in a rural or high-unemployment area (see Targeted Employment Area/TEA). Commercial enterprises can include local businesses, partnerships, business trusts, and corporations. It is important to note that qualifying enterprises must have been founded after 1990, or have been restructured or expanded significantly if they were established before then.

Another requirement for the EB-5 visa is that the foreigner’s investment must create ten or more full-time American jobs lasting at least two years. If investors contribute to an EB-5 project through a regional center, both direct and indirect job creation can count toward this total. On a related note, recent changes to the rules on capital infusion now allow for loans or borrowed funds to be injected into a business in addition to simple cash.

When it comes to top destinations for Indian migrants, the United States is now the second most popular choice, and with good reason. Statistically speaking, Indian citizens tend to be better educated than both native and foreign-born U.S. residents. Additionally, they often boast higher income levels. As a result, Indian citizens are strong candidates for employment-based green cards, skilled occupation-based H-1B visas, and the EB-5 program.

With significant backlogs existing for employment-based green cards, it’s no surprise that an increasing number of Indian citizens are now turning to EB-5 visas as a viable alternative. In fact, there is currently no backlog for fifth-preference (EB-5) visas for Indian citizens. These trends contrast sharply with China, where the EB-5 boom seems to be experiencing a decline.

Why Chinese Investors Are Abandoning the EB-5 Program in Droves

Once upon a time, Chinese migrants flocked to the EB-5 program, bringing with them significant wealth and job opportunities. In fact, almost $20 billion of foreign direct investment funds entered the United States between 2010 and 2015 alone, much of it from China. This trend was due in part to the country’s financial success—a wealthier populace meant that more people could afford the $500,000 investment required by the immigrant investor program. Additionally, Chinese citizens were drawn to Western culture and educational opportunities.

However, Chinese applications have slowed in recent years due to both 10-year visa backlogs and legislative uncertainty. Chinese candidates who do choose the EB-5 program tend to target larger real estate projects featuring loan models with set maturity dates. Most investors take on a passive role rather than participating in the day-to-day management of ventures. Since 2016, Chinese filings have dropped each year, with India now leading the pack in applications.

India’s History with the EB-5 Program

A product of the Immigration Act of 1990, the EB-5 visa program provides Indian migrants and investors from other nations with a path to lawful permanent residency in the United States. To meet EB-5 visa obligations, investors must put $1 million (or $500,000 in the case of a regional center) into an American business venture that creates a minimum of 10 full-time jobs over a period of two years. If you’re working with a regional center, both direct and indirect jobs count toward the final job creation numbers.

As was the case in China, investors from India were drawn to America because of cultural factors and educational opportunities. However, while Chinese investors aren’t primarily focused on investment returns, Indian candidates do expect to see financial gains on their projects. Many Indian investors instead opt for smaller entrepreneurial projects that feature a preferred equity model.

Still, Indian citizens have historically made up only a small percentage of EB-5 candidates. In fact, as late as 2015, Indian investors accounted for just over 1 percent of the program’s market. The same year, Chinese candidates made up more than 83 percent of the market. These numbers are particularly surprising in light of India’s large population and the country’s impressive economic growth in recent years.

India’s hesitation to jump on the EB-5 bandwagon may have something to do with the country’s history. In the past, Indian migrants likely targeted Great Britain because of the country’s colonial heritage. This trend was supported by the British Nationality Act of 1948, which dictated that citizens of former British colonies could opt to remain in the United Kingdom. While the Immigration Act of 1971 put an end to this policy, many Indians had already emigrated to England by this point.

In the second half of the 20th century, a changing American immigration landscape made it possible for Indian citizens to come to the United States. The Immigration and Nationality Act of 1965 eliminated country-based quotas, while the Immigration Act of 1990 allowed for new categories of employment-based visas. In fact, 70 percent of H-1B visas currently go to Indian citizens. Still, EB-5 numbers remained low among Indian migrants.

Understanding the Discrepancy Between Indian and Chinese EB-5 Applications

The discrepancy in the number of Chinese and Indian EB-5 applicants may have something to do with the countries’ varied macroeconomic environments. While China enjoyed large amounts of foreign direct investment funds, the country’s citizens have relatively little economic freedom compared to India. Moreover, the government often restricts access to private capital and plays a significant role in the marketplace. In fact, 90 percent of companies on the Shanghai and Shenzhen stock exchanges are owned by the state.

On the other hand, India allows a wider range of options for its domestic investors. More favorable financial conditions, combined with a distaste for foreign investment, have led many Indian investors to keep their money at home. Additionally, opportunities in India are better for individuals with high net worths. The fact that India rewards its entrepreneurs may help explain why EB-5 visas have not been a historically popular option on the subcontinent.

British immigration data supports the notion that Indians are more likely to invest at home. In fact, in 2016 Indians comprised 55 percent of all Tier 2 (Skilled Worker Visa) applicants. However, they weren’t a significant factor in Tier 1 (Investor Visa) numbers. From 2014 to 2017, the United Kingdom received 135 Tier 1 applications from China and just eight applications from India.

The Future of Indian EB-5 Candidates

Despite past trends, the number of Indian EB-5 candidates is on the rise. In fact, over the last year, regional centers have started targeting India’s largest cities and financial hubs with the goal of finding a new EB-5 market. Similarly, India’s economic prosperity and positive geopolitical reputation are driving its EB-5 participation.

Even as India’s EB-5 numbers are increasing, the country’s applicants approach the program in very different ways. Emigration patterns are different in India and China. While a majority of Chinese applicants live in China and seek visas at the consulate through registered migration agents, priorities are different for Indian investors. In fact in 2016 and 2017, nearly 50 percent of the Indians who applied to the EB-5 program were already U.S. visa holders. Most were students or H-1B holders.

Still, opportunities are shifting for Indian citizens, with the traditional immigration channels drying up in recent years. The fact that Indians dominate employer-sponsored visas like the EB-2 and EB-3 in the United States means that the backlog for approval is significant. Additionally, Indian migrants have to wait until they can find an employer who is ready and willing to take them on when they go this route.

Understanding what the Future Holds for EB-5 Investors in India and China

While the future currently looks bright for Indian EB-5 candidates, it’s worth noting that the legislature is seeking to raise minimum investment costs for applicants. Consequently, some prospective migrants may be priced out of pursuing traditional visas. Individuals who possess the funding may opt to put their money into domestic ventures or target Indian-dominated projects. As a result, regional centers may not find as many investors as they desire.

China has long been one of the top sources for EB-5 visa applications worldwide. While the number of Chinese candidates remained high in 2018, new reporting by the U.S. Department of State reveals a significant increase in EB-5 applicants from locales outside mainland China.

What the Research Says

Last year, the U.S. Department of State published a document titled Report of the Visa Office 2018. Within this data is a table showing a tally of conditional green cards issued last year for the employment-based fifth preference (EB-5) visa as divided by applicant country of origin. According to the report, the EB-5 industry saw significant increases in visas issued to applications not originating in mainland China.

Additionally, the State Department report reveals an increase in the number of countries from which applicants are originating. These changes are good news for EB-5 marketers, as they indicate a large degree of interest in the program worldwide. Moreover, the rise in non-Chinese applications represents a significant development for applicants born in China, as it could result in their own wait times shifting. For example, if EB-5 applicants come primarily from a few countries, the per country cap will result in a block that could shorten waits for Chinese-born investors. On the other hand, if applications span numerous countries, wait times for Chinese applicants could remain the same or even get worse.

A Look Back in Time

At the start of the 21st century, foreign interest in EB-5 visas was relatively small. It wasn’t until Chinese applications started to rise in the 2010s that overall visa numbers really skyrocketed. In 2014, investors hit the visa ceiling (about 10,000 per year), and EB-5 industry growth started to slow as a result. However, it’s worth noting that demand among Chinese-born applicants has yet to wane. On the contrary, the change in visa tallies just reflects an increasing interest on the part of other countries, while the Chinese backlog remains significant.

Understanding (and Misunderstanding) the Trends

While those in the EB-5 industry may be tempted to draw conclusions about investment opportunities based on the State Department report, it’s important to keep certain factors in mind when interpreting the data. One point worth considering is that the Visa Office tracks green cards issued. Understanding investor details means considering that the time between investment and visa issuance ranges from one to five years, with each investor receiving three visas on average.

Additionally, investors should note that the number of visas requested is not always the number distributed. In cases where a country exceeds the visa cap, applicants are requesting more visas than are available. After the cap for each nation has been reached, any extra visas will go to those who have been waiting in line the longest, regardless of country of origin. For example, in 2018, China was recorded as receiving 48% of available EB-5 visas because many of their candidates had been in line the longest. Vietnam received just 7% of visas even though many Vietnamese candidates had also applied that year.

Long processing times for I-526 forms can also affect visa tallies. In other words, the 2018 climb in Indian visa applications may reflect investment increases that happened one or even two years ago, rather than changes from the last year. The USCIS’ log of pending I-526 forms by country and priority date is a good source of information on demand trends in different nations.

What the Future Holds for the EB-5 Industry

An increasing number of investors are looking to India as a top source of EB-5 revenue in the coming years. In fact, research shows that India brought in nearly $500 million in EB-5 funds in 2018 alone. Experts predict that the subcontinent will be responsible for $1 billion in funds in 2019 and a shocking $2 billion in 2020.

Furthermore, many EB-5 investment specialists anticipated seeing a rise in the number of visas associated with direct investments. However, so far that prediction has not been borne out by the evidence. As of 2018, regional center investments comprised 94% of issued visas. The number of regional center investments accounted for 93% of visas in 2017 and 91% in 2016.

While the future of EB-5 investing looks bright, it’s worth noting that capitalizing on these opportunities means ensuring qualified applicants have access to visas. If investors from India are stuck waiting in long lines, the United States is unlikely to benefit from the aforementioned $3 billion in funding. To that end, the success of this program may depend in large part on whether or not Congress provides visa relief in the coming months and years.

The EB-5 market is officially booming on the subcontinent. As of September 2018, India already had 284 EB-5 petitions in place compared to just 164 petitions coming from China. According to reports by the USCIS, the Indian EB-5 market is poised to explode, bringing in an estimated $3 billion by 2020.

Unfortunately, some people in the field believe that retrogression will put a halt to India’s booming EB-5 industry. Understanding how retrogression works is crucial if business leaders hope to maximize profits and take advantage of India’s vast potential in the coming years.

Understanding Retrogression

To understand retrogression, it’s crucial for investors to recognize that different countries have their own distinct entry gates for the EB-5 process. In other words, individuals stand in separate lines based on their application dates and whether they fall in the employment or family visa category. The length of a particular line depends on the visa category, with certain countries experiencing far longer wait times than others. For example, the line for British EB-5 candidates is relatively short at present compared to the line for candidates in China.

With retrogression, every country is allocated a certain number of visas. If visas remain after that, they are allotted to the oldest applications regardless of the individuals’ countries of origin. After the visa quota for a country with a long line has been met, individuals in that line are unlikely to attain immigration benefits. On the other hand, if a country’s retrogression time is less than the application processing time, applicants are unlikely to be affected by waits.

Taking Advantage of EB-5 Investment Opportunities

Retrogression can seem complex, but those who fail to understand this process may miss out on opportunities to earn significant sums in EB-5 revenue. In fact, misunderstanding retrogression will result in around $3 billion in losses, according to experts.

Because of the large number of EB-5 applications in India, some industry professionals believe that once retrogression begins, all Indians waiting for visas will be in line behind Chinese applicants. However, this isn’t the case.

On the contrary, Indian EB-5 candidates will not wind up behind Chinese applicants, who face a 15-year waiting period. Because each country has a visa line of its own, and the line for India is shorter, Indian candidates will move ahead of Chinese applicants who may have been waiting longer. Remember, there are around 10,000 EB-5 visas available per year, with each country receiving around 700 visas. Consequently, Indian applicants will never be forced to wait behind applicants from China or any other country, and vice versa.

Currently, China, India, and Vietnam are the only countries with more than 700 candidates waiting for EB-5s. When allocating visas, the industry gives numbers to the oldest 700 Chinese, Indian, and Vietnamese applications first, followed by those from other countries. Then the remaining visas are given to the oldest applications regardless of country, assuming there are any left. So if there are 1,000 extra visas to be allotted, they will go to the oldest Chinese applications due to the backlog there.

It’s worth noting that applicants won’t be impacted in cases when retrogression time is less than processing time. For example, applicants in India are unlikely to experience delays until there are 12 consecutive months of retrogressed times longer than processing times.

Indian EB-5 wait times contrast with those for EB-2 and EB-3 categories, which are currently 25 years and 75 years respectively. While it’s possible that EB-5 waits may expand to five or 10 years, the option will still be favorable for Indian citizens looking to emigrate.

Other categories also follow a system of retrogression, with different countries having separate gates and lines. For example, EB-3 candidates in India currently have a wait time of eight years, while the wait time in the Phillipines is just 1.5 years. This discrepancy occurs because there are far more Indians standing in the EB-3 line than there are Filipino nationals. It’s worth mentioning that both India and the Phillipines have been in retrogressed territory for several years, with neither country’s candidates standing behind the other’s.

What Investors Need to Know

Experts anticipate that the Indian EB-5 market will continue to grow in the coming years. In fact, the subcontinent represents more than 50% of the world’s total EB-5 market and is expected to grow at a rate of 100% per year. The good news is that retrogression should have little effect on flows of EB-5 capital from this area. Those in the EB-5 industry need to do their homework to avoid missing out on this $3-billion opportunity within the Indian market.

Since 2015, the EB-5 industry has been in limbo in anticipation of new legislation and USCIS regulations that will revamp the EB-5 Immigrant Investor Program. These lingering proposed changes are still neither final nor agreed upon among government officials. While the government continues to drag its feet, those involved with the EB-5 program have witnessed its significant growth, with more than $20 billion in total investment since 2008 and more than 30,000 I-526 immigrant investor petitions filed with USCIS from 2015 to 2017. However, those who have been following developments closely can attest that this growing popularity has driven two notable changes to the day-to-day use of the EB-5 program.

1) Change in Investor Profile

At the 2018 IIUSA EB-5 Conference held in Washington, D.C., Charlie Oppenheim, chief of the Visa Control and Reporting Division for U.S. Department of State, announced that backlogs for Chinese and Vietnamese EB-5 investors will grow to 10 plus years and five plus years, respectively. While Vietnam remains a strong market for EB-5 investors, EB-5 players have taken to traveling to other countries, such as India, Brazil, South Korea, Mexico, South Africa, and others, to make up for the dramatic decrease in EB-5 investment funds coming from China.

There has also been a push within the United States to seek out foreign nationals who may be interested in the EB-5 program. For example, the ever-growing backlog for Indian nationals waiting to migrate under the EB-2 immigrant category for individuals with advanced degrees and the EB-3 immigrant category for skilled workers and professionals has spurred an increased interest in EB-5 for this demographic. With the exploration of new countries has come new terms for working with EB-5 investors. Unlike EB-5 dealings in China, which almost always involved working with a migration broker handling most of the interaction on behalf of the EB-5 investor, individuals from countries that are newer to the EB-5 space require much more one-on-one interaction and relationship building between the client, attorney, and EB-5 project. A potential client from India or Mexico will likely require that he or she personally meet attorneys and evaluate a number of EB-5 projects before making a decision.

2) Change in Investment Terms

The changing landscape in the EB-5 industry is also reflected within the investment documents offered by EB-5 projects. Interacting with new foreign nationals and the effects of extended EB-5 immigration timelines have led to the need for updated investment terms. In the past, because Chinese investors preferred the type of model in which the EB-5 fund loans pooled EB-5 investor funds to a project, this model made up most projects. However, as new countries are being targeted, another investment structure has become popular, which involves the EB-5 fund using pooled EB-5 investor funds to make an equity investment in a project. Consequently, EB-5 projects now offer both investment options to accommodate investors from around the world.

Furthermore, the EB-5 backlog and the related extended EB-5 immigration timeline for Chinese and Vietnamese investors must be discussed in the project investment documents. The longer backlogs for Chinese and Vietnamese investors requires revised language in the investment contracts regarding child age-out concerns and clarifications on timeframes for investors receiving credit for job creation. Aspects of how the EB-5 funds are handled by the project must also be incorporated into the contracts due to extended EB-5 timelines, such as anticipating longer EB-5 loan terms and describing options for redeployment of EB-5 investment funds.

Overall, these changes mean that the need to make connections, cultivate relationships, and think creatively is more important than ever before in EB-5. For those getting involved with an EB-5 project, be prepared to structure an immigration-compliant, competitive project that checks all the boxes under current EB-5 conditions.

Turkey is traditionally known as the bridge between Europe and Asia, and this is true – both geographically and economically. Today, the immigration and investment landscape in Turkey is a two-way street, as it remains an attractive destination for investors and tourists, and at the same time is among the countries experiencing high rates of “brain drain” due to outbound immigration. Recent political instability, the perception of a stricter government, and doubts about what the future holds for the next generation are among the negative factors driving a considerable portion of the population to explore opportunities to migrate and grow their families elsewhere. At the same time, opportunities for education, employment, and property acquisition abroad are key factors that attract Turks to seek alternative futures in other countries, with European countries being the traditionally and culturally preferred option.

Immigration Trends in Turkey

Similar to Middle Eastern investment immigration markets, many Turks view investment immigration not as a planned migration option but as an escape hatch to be accessed if the political environment worsens or Middle Eastern unrest significantly affects their daily lives. “Golden visa” programs in Portugal, Spain, Greece, and Malta have been particularly popular, as these programs do not require the immigrant investor to move and begin the residency upon approval. Another attractive path for outbound immigration has been through the 1973 Turkish European Community Association Agreement Visa, governed by the 1963 Ankara Agreement, which, among other rights, allows Turkish citizens to incorporate and run their own businesses and obtain residency permits in the United Kingdom. Given Turkish nationals’ unique immigration drivers, EB-5 visas and emigrating to the United States were foreign concepts to most of them, which is reflected in the small number of I-526 petitions filed by Turkish nationals in the years leading up to 2016.

Today’s millennial generation in Eastern Europe and the Middle East, however, grew up with strong American cultural influences and are more interested in sending their children to school or to pursue employment in the U.S. that the generations before. For Turks wanting to spend limited amounts of time in the United States, B-1/B-2 visitor visas remain an option, and the slow processing times for visa issuance following the October 2017 diplomatic dispute at the U.S. Embassy in Istanbul are resolving. H1-B, E-2, L-1, O-1, and other EB categories are also valid and widely used options, leaving EB-5—as it should be—as the option of last resort when all other avenues have been exhausted.

Turkish Investor Profile and Source of Funds

Looking for investments in Turkey is, in the world of EB-5, a newer market. There is no “typical” EB-5 investor anywhere in the world, and that is the case for Turkey as well. The Turkish investor is often very well educated (many having received their higher education in the United States, United Kingdom, or continental Europe), a white-collar professional, the owner of a small to mid-size business, or a graduate student from a wealthy family. Unlike India or China, Turkey has not experienced rapidly increasing real estate values and thus does not have a large “property millionaire” class. Nor does Turkey have outbound remittance restrictions to complicate the path of funds (although banks typically ask for a copy of the subscription agreement as proof of the underlying investment). And Turkey is not on the Treasury Department’s Office of Foreign Asset Control list of sanctioned countries, so escrow transactions are typically not an issue.

A common source-of-funds challenge for Turkish investors occurs when the investor uses funds from the sale of a long-held property, where title deed documents and tax records do not match the actual sales amount—an irregular practice that was endemic in Turkey until the last decade. Another recurring issue pertains to taxes. Turkey and the United States reached an agreement in 1996 to prevent double taxation, but wealthy Turks still prefer to shelter their Turkish assets from the U.S. tax system. It is therefore advisable at the outset to consult with a qualified overseas or inbound tax consultant, wealth manager, or law firm with a solid U.S.–Turkey tax practice to address such questions.

Conversion and Preference in Projects

The process of converting a prospective investor in Turkey to an actual investor is typically slow, and culturally it is not uncommon for a prospective investor to require many visits and due diligence calls, adding up to somewhere between two to six months to close. As is often the case with investors from India, the Middle East, and Europe, Turkish investors ask questions that are very technical and that require attention from the underwriting team of the regional center and/or the developer to explain the mechanics behind the offering documents.

Turkish investors are much more familiar with the coastal U.S. cities than the heartland; New York City, San Francisco, Los Angeles, and Miami are usually the preferred locations for both second home purchases and EB-5 investments. Typically, big developers or sponsors attract investors to review the offering, but they will not invest if they do not understand or approve of the deal structure, regardless of the stakeholders or location of the project. The investment returns are lower on the prospect’s list of EB-5 investment priorities, and secure deals (rather than returns) drive the decision-making process.

Referral Landscape

As there is often a natural transition from home purchase to investment immigration, real estate agencies have a relevant and captive client base, but they do not possess much expertise in emigration nor a thorough understanding of the transactional / or offering documents. Other popular investor referral sources are wealth managers, reputable law firms, and tax advisors, as high-net-worth individuals tend to have more confidence in dealing with such vetted groups. Likewise, many Turkish high-net-worth individuals can speak English, but it is a significant plus for them to be able to converse with sophisticated native Turkish speakers when conducting project due diligence or working through their source-of funds issues.

Given its population and motivating factors, Turkey certainly is an exciting market for EB-5, but successfully accessing it requires a serious investment of both time and resources. In the years to come—contingent upon potential legislative changes, of course—expect Turkey to rapidly climb the ranks of the top 10 EB-5 countries.

Whether you are beginning the EB-5 investment process or have already been invested in an EB-5 project, it is a good idea to know the details of capital redeployment in terms of the EB-5 visa program. Capital redeployment may not be a common topic for EB-5 investors, but it is a topic worth understanding.

Due to overwhelming demand for EB-5 visas, the queue for I-829 petition processing has grown. To date, most annual applications for the EB-5 program originate from China. These increased demands from China have added to processing times for EB-5 investors.

Today, an EB-5 investor may find themselves in a situation where the need for capital redeployment becomes a reality due to the long wait times for I-829 petitioning. If this is the case, you should know what capital redeployment means for you, and why you may need to use it.

What is capital redeployment?

As an EB-5 investor, you allocate capital to a project, and that project uses your funds to execute the business plan of the project. While executing the project business plan, the job-creating enterprise (JCE) must also meet its job creation requirement numbers.

In many cases, it will take the JCE approximately four to five years to succeed in executing a business plan for the project and also meeting the job creation requirement it is held to. Once this is done, the project ends and the JCE returns the capital to the new commercial enterprise (NCE). The NCE receives the returned loan principal, and the project is considered finished.

The project can be accomplished ahead of schedule. If this happens, the original principal amount of the loan may need be redeployed into a new project. This may not be a decision you wish to make, but it may be necessary if your I-829 has not been processed yet.

Why you may need to redeploy funds

You may be wondering why funds would need to be redeployed if the project is completed early. The United States Citizenship and Immigration Service (USCIS) published a draft memo in 2015 on projects ending before I-829 approval has taken place. It stated that any funds returned by the JCE before the I-829 is processed would need to stay at risk.

The USCIS has disseminated little formal guidance on this subject, but these small pieces of information can be seen as reasons you should keep your funds at risk if a project is completed before the I-829 is approved.

While your money must stay at risk, there is no specified guidance on what type of risk this refers to.

Keeping your money at risk – Redeploy with JCE

To keep your money at risk, the NCE can loan the capital to the same JCE you worked with before. There are pros and cons to this strategy.
If you had a positive experience with your original JCE, you may find it a welcome advantage to be able to redeploy your capital with them. Since the JCE finished the project earlier than estimated, you may view the company as extremely efficient and welcome the opportunity to reinvest.

Be careful about this, as the new project you will redeploy your capital to may not have as favorable of a timeline. It is possible the new project executed by the JCE is a much more in-depth project with significant bottlenecks.

You should research the new project and do proper due diligence regarding project goals and challenges. Your money may be locked up longer than you wish if the project takes longer than your previous project.

You should also do your due diligence on the potential profitability of the project. Since your money is at risk, you need to do proper research to understand what the project is trying to accomplish, and how the potential cash flows and debt structuring of the project look from a risk perspective.

One positive aspect of redeploying the capital is that you will no longer be held to the job creation requirement you were held to before.

Other options

There have been opinions and interpretations of the USCIS views on “taking risk.” Some believe that taking risk can mean investing in other opportunities. If this is true, you may be able to invest in something outside of the JCE.

For example, you may be able to invest in an individual stock purchased through the stock market. This would be an investment at risk, so it could potentially fall into this category. Alternatively, potential investments could include real estate investment trusts (REITs), company stock and/or funds such as ETF’s and mutual funds, and even alternative investments.

You may decide for purposes of liquidity to invest in one of these areas instead of investing in a completely new project with a JCE. Investing in something like an individual stock is extremely liquid, as the stock could be sold immediately after the I-829 is secured. This can be significantly better than locking capital into a new project with a JCE.

Conclusion

While the USCIS hasn’t made any firm rules, it may be wise to keep your investment at risk in the event the project in which you invested is accomplished early. You may do this by investing in a new project with the same JCE. This could lock your capital up for a long time, and there are risks associated with redeployment. Some have interpreted the need for the money to stay at risk to have a broader scope, including through other investments such as stocks and real estate.

Whatever your decision in terms of redeployment, it is important to educate yourself about how redeployment can both help and hurt. As long as you do your due diligence, you may be able to use redeployment in your favor.

Current law dictates that around 85,000 H-1B visas are available each year. Application decisions are based on a lottery conducted by U.S. Citizenship and Immigration Services (USCIS), with a random computer system determining who will and won’t be able to seek employment in the United States. Once USCIS ceases to accept additional H-1B visas for the year, those seeking entry to the United States may have to consider other options.

According to USCIS data, 65,000 visas were available for the 2019 H-1B filing season under the standard cap (for candidates with bachelor’s degrees). Individuals with master’s degrees from accredited American schools fall under the advanced cap, which offers an additional 25,000 visas. The USCIS received more than 190,000 visa petitions from aspiring U.S. immigrants. Although this number is actually down from previous years, a large disparity remains between those seeking visas and the number of visas currently available.

H-1B Visa Alternatives

Just because you missed out on the lottery for an H-1B visa doesn’t mean you have to give up on your dream of emigrating to the United States. In fact, there are other options for talented visa applicants with something to offer. Several H-1B alternatives exist for employees and employers.

L-1 Intracompany Transferee

A suitable option for foreign employees and nationals who want to establish or increase their presence in the United States, the L-1 visa is a great alternative to the H-1B visa. Not only does it allow multinational companies to transfer employees from overseas facilities, but it also enables family members of those employees to work while in the United States. Note that this visa option is not suitable for foreign nationals who currently live in this country.

EB-5 Visas

For individuals seeking permanent resident status in the United States, the EB-5 visa is a great option. It’s no secret that green card backlogs can delay the citizenship process for aspiring immigrants. With the EB-5, applicants with investment capital can achieve lawful permanent residence status provided that they invest between $500,000 and $1 million in a suitable venture. Additionally, EB-5 visa candidates must create a certain number of jobs to gain approval.

E-1 and E-2 Visas

Foreign nationals who are key executives, supervisors, or other essential employees may be able to apply for an E-1 or E-2 visa. To qualify for this visa option, individuals must intend to enter the country to carry on trade or lead a business enterprise in which they have invested significant capital. As a bonus, key employees at the E-1/E-2 company may also be able to enter the United States. However, these individuals must have the same nationality as the treaty employee.

O-1 and P-1 Extraordinary Ability Visas

If you have a special ability or talent, you may qualify for an O-1 and P-1 visa. Suitable for exceptional individuals working in science, business, athletics, education, or the entertainment industry, this visa functions as an alternative to the H-1B. Note that candidates who are approved for an O-1 or P-1 may go on to qualify for EB-1 category permanent residency status.

TN for Canadian and Mexican Professional Workers

Citizens of Canada and Mexico may qualify for the TN visa for professional workers. Available to individuals who seek U.S. employment in certain occupations, this visa does not have a cap the way other options do. One can apply for a TN at the Canadian border or by filing a petition with USCIS.

Trainee Visas

Certain employers may qualify for training visas. These options enable eligible individuals to work for employers in the United States and receive compensation for training.

J-1 and H-3 Trainee Visas

The J-1 and the H-3 trainee visas are available to certain individuals seeking to enter the United States. Under the terms of the J-1 visa, individuals must seek employment with a U.S. company and receive payment for the length of the approved training program. The average J-1 training visa is 18 months, and individuals must receive sponsorship by an approved Exchange Visitor Program.

Additionally, individuals can opt to apply for the H-3 trainee visa. Designed for non-immigrants who intend to visit the United States temporarily for training purposes, this option is not specific to any one field. Note that training must not be available in the candidate’s home country. Additionally, the trainee can’t take part in productive employment unless it’s key to the training program. The H-3 visa lasts for a period of two years.

Finding a Visa Option That Meets Your Needs

Although many visa proponents suggest that caps should be increased, at this time there’s no reason to think policy will be changing soon. To that end, aspiring visa recipients need to do everything in their power to boost their chances of being accepted.

For more information about finding the right visa for you, and about being approved for permanent resident status, call today, or contact our team online.

Some disagreement exists about who started the first fast-food company in the United States, with top contenders including McDonald’s and White Castle. Regardless of how the trend started, one thing is clear: when it comes to the United States and other countries worldwide, fast food can equal fast money.

With many fast-food restaurants bringing in significant revenue, an increasing number of EB-5 visa applicants are considering putting their money where Americans’ mouths are. But is fast food really such a great route for your investment capital? Read on to learn more about the pros and cons of investing in this particular sector of the economy.

Fast-Food Restaurants as Direct Investments

A quintessentially American business, the fast-food restaurant is a popular choice among immigrant investors. However, you must consider several factors before deciding to hand over your hard-earned funds. First, you should determine whether you want to invest directly in a business and take part in daily operations or if you would prefer to take a more passive role in the proceedings.

As a direct investor in a fast-food venture, you may experience some challenges during I-526 processing. For some countries, I-526 adjudication is a lengthy process, and it could be two years or more before you can enter the United States. This is particularly relevant for countries like China that tend to have long wait times. Because I-526 adjudication requires investors to have extensive information about the business enterprise in question, so if you are located overseas, you may struggle to perform due diligence and acquire all the necessary data to move forward. Moreover, if you are located abroad, you may struggle with everyday such as hiring employees and handling day-to-day operations. Therefore, attempting to invest directly in a fast-food venture might not be the best choice for EB-5 visa candidates.

Fast Food and Regional Centers

Because of the struggles involved in investing directly as an EB-5 candidate, you might opt to invest instead in a regional center. Functioning as limited partnership entities, regional centers allow companies to raise funds for a business. While you will still have a role to play regarding strategy, the regional center will handle the daily operations of the enterprise. In that sense, it’s possible to invest in an American fast-food restaurant without being located in the United States. Regional centers can secure up to 25 percent of a project’s capital from investors and the rest from banks, venture capital, and other strategies.

When selecting a regional center, it’s wise to do your due diligence. Ensure the individuals managing your investment have a record of success in the fast-food business and experience with EB-5 ventures. This step is especially important, as you won’t necessarily be there on the ground every day.

Finding the Capital for Your Project

Investing in a fast-food venture through a regional center can be helpful from a financial perspective too. EB-5 investors are required to put $1 million into a direct investment venture; however, by investing in a regional center in an area with high unemployment and low economic prospects, individuals can reduce their burden to $500,000.

While a direct investment of $500,000 probably isn’t enough to start a fast-food restaurant on your own, when you invest through a regional center you can expect to have other capital available to you as well. So, you can reduce your personal financial burden while still investing in the business of your choice. Investing through a regional center can also help you afford franchise fees, which can total hundreds of thousands of dollars for many of the most popular brands.

Fulfilling the Jobs Requirement

One of the many benefits of investing in fast-food restaurants is that meeting the jobs requirement should be relatively simply. According to the EB-5 visa rules and regulations, immigrant investors must allocate capital to ventures that create a minimum of 10 jobs. Because of the demand involved in running a fast-food restaurant, it’s likely that you’ll need a minimum of 10 workers and probably more. After all, fast-food restaurants tend to have long hours and require employees to work multiple shifts throughout the day. Your business could conceivably be open 12 hours a day for seven days a week.

Note that projects with multiple investors have higher job creation requirements than those with just one investor. However, an average fast-food restaurant may be able to meet the jobs requirements for two different investors due to the long hours.

Evaluating Fast-Food Restaurants as EB-5 Investments

Clearly there are positives and negatives associated with investing in a fast-food venture as an EB-5 visa candidate. Quintessentially American institutions, fast-food eateries are familiar to customers and tend to take in a steady stream of profits. And because they’re open long hours and require a significant workforce, meeting the jobs requirement should be fairly simple.

Still, investing directly in a fast-food venture can be a challenge. If you want to put your capital into this type of business enterprise, investing through a regional center may be the best choice. Not only does it allow investors to take a more passive role in the proceedings — something that’s helpful if they’re located outside the United States — but it may also reduce the funds needed to $500,000 instead of $1 million.

Choosing the Right Business Venture

EB-5 investors have a lot on their plate, and choosing the right business venture is one of the hardest and most crucial aspects of the process. While there’s no easy answer when it comes to deciding where to invest your money, our team is here to guide you through the process. Whether you’re looking for legal advice or business acumen, our experts have the inside track on the EB-5 program.

Ready to start your journey to permanent citizenship through the EB-5 visa program? Call today or contact us online for a consultation.