The Rapidly Heating U.S. Investment Immigration
According to data provided by the U.S. Department of State, in 2008, Chinese applicants accounted for about one-fifth of the total investment immigration green cards issued, making China the second largest source country for U.S. investment immigration, second only to South Korea. However, in terms of the growth rate of visa approvals, China has surpassed any other country, ranking first.
Industry insiders analyze that the tightening of bank credit in the U.S. after the financial crisis has caused many commercial development projects to be shelved due to lack of loans, while the persistently high unemployment rate has led Americans to increasingly target the wallets of foreign immigrants. Wealthy Chinese investors have clearly been placed in a priority position, and the previous years' wave of studying abroad has laid the groundwork for the current wave of immigration to the U.S.
"Since the end of last year, U.S. investment immigration has begun to heat up rapidly. The success rate for U.S. investment immigration applications is relatively high, and the application cycle is relatively short, which has led many intermediaries to enter this field in large numbers.
Diverse Investment Projects
The most frequently mentioned program in current U.S. investment immigration is the EB-5. This is a visa category specifically established for overseas investment immigration under U.S. immigration law. As long as investors choose to invest over $1 million to establish a business anywhere in the U.S. and create 10 job opportunities, a two-year conditional immigrant visa will be issued. If, after two years, the investment is still operating normally and retains 10 job positions, the investor can obtain formal permanent residency. In 1993, the U.S. government amended the EB-5 investment program, only requiring applicants to invest $500,000 in projects at "economic zone" regional centers to indirectly create job opportunities to obtain the EB-5 visa.
According to official statistics from the U.S. Citizenship and Immigration Services, as of the end of October 2009, a total of 29 states had registered and received approval from the U.S. Citizenship and Immigration Services, with as many as 73 regional centers, and this number continues to increase.
EB-5 is referred to in the industry as a flexible immigration program, with no requirements for education, age, or business background; applicants only need to be over 21 years old; able to explain the legitimate source of $500,000; one visa allows the whole family to immigrate.
A commercial plaza project in Delano, California, will raise $25 million, with investors forming partnerships at $500,000 per share. After five years, the partnership will dissolve, with the developer's parent company promising to buy back the shares. It is reported that this project has already received approval from the U.S. Citizenship and Immigration Services and has 50 immigration quotas.
"Buying a house in the U.S. grants the whole family a green card," refers to a hotel-style apartment in the Beautiful Lake Resort in Orlando, Florida, where an investment of $500,000 can obtain ownership and shares of a semi-hotel-style apartment. After two years, the U.S. will evaluate this project, and if this semi-hotel-style apartment can maintain 10 job positions, the applicant's entire family will receive green cards.
In 1992, the U.S. closed 29 military bases in California. To revitalize the economy and solve employment issues, the funds from investment immigration will be loaned to agencies under the California government for commercial development of the closed military bases. "The safest EB-5 project ensures that investors obtain permanent residency."
Expert Tips to Avoid Risks
Intermediary companies engaged in immigration must possess qualifications approved by local public security departments. Some companies may also handle immigration to countries like Australia and Canada, but they may not necessarily have U.S. immigration qualifications. Moreover, legitimate intermediaries will maintain a deposit of $800,000 to $1,000,000 with the approval authority, so that in case the intermediary violates laws and regulations while providing services, investment immigrants can still receive certain protections. Therefore, it is essential to verify the intermediary's business qualifications and scope.
As for U.S. EB-5 investment immigration, although there are almost no thresholds other than the funds, the safety of the $500,000 investment after five years and whether the temporary green card can be converted to permanent status after two years is the biggest risk. "The worst-case scenario is that the $500,000 investment goes down the drain, and the green card is not obtained."
The U.S. government stipulates that no project can offer buyback or repayment guarantees for investments in regional centers. Investment immigrants in the U.S. should not expect high returns on their investments; being able to recover the $500,000 is already considered good. Many U.S. immigration projects now promise annual returns of over 25%. "If the returns were really that good, why would they come to China to attract investment?" Therefore, they recommend choosing some environmentally friendly projects or projects supported by government funding. This way, the probability of recovering the $500,000 investment after five years will be relatively higher. If it is purely a project where clients invest on their own, the risk is very high.
It is advisable to choose projects where the investor's share of the total investment amount is relatively small. A smaller investment proportion means that if it does not succeed in the future, there will be more protection in terms of exit; additionally, it is best to choose projects that have offices or institutions in China.