EB-5 is an amazing opportunity for foreign investors looking to buy into a franchise in the United States. However, before you start filling out your EB-5 application, there are four important things you should know about the program, its requirements and its expectations. First of all, the project in which you choose to invest must be financially marketable and viable. It must be able to create jobs as well as show a clear exit to return initial funds. Franchises are a great choice because the companies that sell franchises are most likely stable, established and able to help meet these requirements.
It’s also important to know that participating in the EB-5 program doesn’t happen overnight. The process of EB-5 application and approval takes patience, diligence and a lot of research. There is a lot of paperwork included in this process, which should be completed compressively and in a timely manner. Financial and business information will have to be obtained and provided as well as proof that the company meets all of the standards discussed in the previous paragraph. In addition, the application and granting process could require travel to the United States once, twice or a lot more times depending on the franchise, location and extend of the investment.
The location of your American business is also very important to EB-5. There are two different investment minimums that are used to qualify for the program. The minimum investment into the EB-5 program is $500,000. However, the exact amount of investment directly affects where you can open a business. An investment of one million dollars or more allows investors to open a franchise wherever they choose (with approval by the franchise company). Investments between $500,000 and $1 million must be invested into pre-approved areas by the program. These pre-approved areas are typically either rural areas or areas with high unemployment rates.
Even though you will fill out a variety of forms, papers and files as an investor you will also have to create a business plan compliant with the EB-5 program.
Immigration specialists do not deal with this aspect of the program. In fact, there are hired economists that review business plans for their viability and realism. There are even specialized consultants for hire throughout the world that help with the development of these sorts of business plans. Beyond just your application, this business plan helps the United States to understand your plans and intentions as a foreign investor. The submitted business plans are evaluated to make sure investors meet the requirements of the EB-5 program.
Knowing these four aspects of the EB-5 program can help you be better prepared if and when you choose to apply. Investing into a franchise is an option that should be explored as they lend themselves perfectly to the requirements of the program. Dr.PhoneFix for example can be a great investment for foreign investors looking for a stable and successful business to start and pursue. If you are considering applying for EB-5, click here for more information.
The Most Important EB-5 Requirements
In reality, obtaining an EB-5 visa isn’t as easy as just applying and waiting for your green card to arrive in the mail. There are requirements of this program that allow the United States to verify the investment and its purposes. While the EB-5 application process takes a lot of time and paperwork, there are three main requirements that without will not allow you to take advantage of this American program. If you can meet all of these requirements, there is no reason not to apply for the EB-5 program as it grants any foreign investors the opportunity to open and run a business in the United States leading to professionals and financial success.
There is a required investment amount. Unfortunately investments under $500,000 do not qualify for the EB-5 program. A capital investment of either $500,000 or $1 million is needed to fully enroll in this program and obtain an EB-5 visa. These investments don’t have to be made in just cash, they can also be made through business equipment, inventory or tangible property purchased for the business. The amount of money invested determines where the business will have to be located as a lesser investment gives the program more control over location. For example, the EB-5 program aims to place foreign investors of amounts of $500,000 in areas that need extensive help in job creation or economic sustainability.
The business must create jobs. The EB-5 program is based on the preface of job creation and economic stimulation. Therefore, the program requires that the company in which investors purchase must create at least 10 full time jobs for American workers. All of these jobs must be developed and filled within two years from when the investor receives their EB-5 conditional permanent residency. The investor may also have to show indirect jobs created by their investment. This includes an increase in jobs at the company that supplies the franchise or new business with its supplies or goods. Investors can also show jobs created in their new communities as a result of the money being spent by their own employees in the local stores.
The investment must be in a for-profit company.
Franchising is the perfect choice for the EB-5 program because they are non-profit companies that allow investors to open in a variety of different locations within the United States. Investments can be made in new companies or existing companies depending on amount of employees, business structure and net worth. United States commercial entities are the main focus of the EB-5 program as the program aims to create jobs and stimulate the economy. Unfortunately, EB-5 visas are not granted to investors that want to purchase or finance in non-profit organizations based in the US. Dr.PhoneFix is a commercial non-profit company that has franchise opportunity currently available. We can help you obtain American citizenship through an investment in a Dr.PhoneFix location in many different areas of the United States.
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