US EB-5 GREEN CARD PROGRAM
The United States EB-5 Immigrant Investor Program is a very old and popular US government approved investment immigration program created in 1990 which allows applicants to invest $800,0000 USD (previously $500,000 USD), in US based projects to obtain a green card for the investor, the investor’s spouse, and any children under the age of 21 at the time the application is submitted. The investment must generate employment for US people and the projects are sponsored and regulated by US government approved administrative bodies called Regional Centers.
The EB-5 Program has undergone many changes over the past year now making it more secure than ever for those who wish to obtain a green card via this efficient immigration path. In March 2022, the EB-5 Reform and Integrity Act of 2022 was passed. This bill introduces new and important measures to the program which would create stringent guidelines for anyone dealing with investors under the EB-5 scheme.
EB-5 Now A Safer Option for Investors
The main point for the reauthorization of the EB-5 Program was to implement important regulatory changes which have been discussed amongst the US government and EB-5 key members for many years. These amendments also address some of the key issues stakeholders and investors alike have had with the EB-5 Regional Center Program. One such element of the EB-5 Reform and Integrity Act was the introduction of measures to reduce the risk of fraud and increase investor security by holding Regional Centers, consultants, lawyers, and other EB-5 participants accountable to USCIS.
This is being done through the requirement of annual audits, a higher level of transparency and background checks for key players within Regional Centers, and various registrations of new projects.
Regional Centers will still be required to file a project pre-approval or “exemplar” for each new project they are sponsoring, prior to accepting new EB-5 investors. They will have to wait 10 days post filing before they can take in new investors.
All of these elements combined mean that EB-5 investors can now participate in the program with a greater sense of security than any time since the program’s inception.
Grandfathering of All Applications
Under the EB-5 Reform and Integrity Act all applications will be grandfathered in. This means, the government regulations applicable at the time the investor applied will remain applicable during their entire immigration process, even if regulations are amended at any point.
Early Access to the United States
Taking into consideration the processing times of green card applications generally over the past few years, the EB-5 Reform and Integrity Act will now allow for quicker entry into the United States for those EB-5 applicants who are eligible through an Adjustment of Status (AOS) concurrent filing.
Investors who have submitted their I-526E (initial EB-5 application) can now also do a concurrent filing for Adjustment of Status at any time during the processing of their green card application. Previously, the AOS filing could only be done after an individual received an approval on their I-526 which created a longer timeline for entry into the United States.
For those who already hold various US visas, this concurrent filing is a game changer. Once a concurrent filing is done, an applicant then waits for as short as four months until they receive both an Employment Authorization Document which gives them the right to legally work in the US and a travel document which allows them to travel freely outside of the United States.
CANADA START UP VISA PROGRAM
The Canadian Start Up Visa Program is the closest option to the US EB-5 Program at the moment, for those who wish to immigrate to Canada via investment. However, the program as a whole is very different. The Start Up Visa program was introduced by the Canadian government in 2013 but has also undergone many changes over the years.
The Start Up Visa Program allows entrepreneurs the opportunity to immigrate to Canada in order to establish a new business. The entrepreneurs must demonstrate that their business idea is innovative and will create new jobs for Canadians as well as compete on a global scale. The fundamental purpose of this program is to attract foreign investment into Canada but also attract entrepreneurs from all over the world with businesses which will spur economic growth in Canada.
Under this direct to permanent residency program, only government authorized business organizations, venture capital funds, and angel investor groups can take on and support entrepreneur business plans for the purposes of both growth and immigration. Investors can now invest for equity into an innovative founder’s business if they will play key roles in mentorship or board seats and also obtain permanent residency in Canada.
Requirements for the Start Up Visa Program
There are a few requirements which both business organizations and the Canadian government will look at in order to take on and approve applicants under the Start Up Visa Program. First, unlike the US EB-5 program, the profile of the primary applicant is highly considered. They must exhibit some kind of prominent experience in a certain industry or skills set. This will ensure that they will be able to contribute to the growth of the business. The success or failure of the business will not affect the applicant’s permanent residency when already approved.
The Start Up Visa has limited participation from investors but is not completely passive. Investors will be required to take a course, and participate on weekly or bi-monthly phone calls and meetings with the business founder and other investors in the company in order to provide guidance and be involved in the success of the business. This participation will need to be illustrated in the application for permanent residency.
Finally, the investment amount for equity can range anywhere from $75,000 CAD and up. In total with associated legal, business association, and course fees, the total investment amount comes up to approximately $230,000 CAD.
For those wanting to immigrate to Canada, the Start Up Visa Program is currently the only direct to PR program which requires a lesser amount of time contribution from applicants.
LEADING INVESTMENT IMMIGRATION FIRM IN THE GCC
Those who would like to participate in the new EB-5 program with a set of arguably better protection for investors, or the Canadian Start Up Visa Program, can get in touch with Step Global Group. As the leading investment immigration firm in the region, Step Global currently has projects and businesses available in all categories to suit each and every individual investor. Our vast legal and immigration network allows us to provide not only expert service but also exclusive opportunities including those where we have successfully received approvals on expedited requests for many clients. Our licensed lawyers are happy to sit down with you to properly put a plan in place for your individual migration journey. Under the aegis of Preeya Malik, who herself is a US lawyer specialized in immigration statutory framework, Step Global has a 100% track record of approvals across all applications and over 12+ years of experience in the investment immigration industry for North America, making Step Global well positioned to provide clients with the expertise necessary for success.
