Since the pandemic, the American economy has been fighting to recover lost profits and regain productivity. The damage has been felt across all industries, with the manufacturing sector being hit the hardest. As the United States slowly emerged from these economic difficulties, inflation Spikes are resurrecting consumer fear and restraining buying power. In the face of such uncertainty, investment programs like the EB-5 provide hope for stimulating the economy and creating more jobs at no cost to US taxpayers. Legal experts like F. Oliver Yung, an immigration lawyer and Partner at Reid & Wise LLC, also share that the program offers a reliable path to work authorization and permanent residency for international students, especially those from China.
The EB-5 immigrant investor program was established in 1990 to attract foreign capital and create jobs. Since its inception, the program has provided immigrants hope of receiving lawful permanent residency in the form of a Green Card. However, the program had its drawbacks. Applying for the EB-5 and investing funds was a ‘watch and wait’ game. It could take a decade or more for Chinese investors to receive a Green Card. This ambiguity isn’t beneficial for immigrants trying to make concrete plans, or for the government to improve the economy.
Due to these bottlenecks and fluctuating immigration patterns, the EB-5 program became less popular. However, interest has reignited since the American government has now modernized the program. Wait times have been significantly shortened to about three years, and additional protections to prevent fraudulent investment have been instated. These changes are fruitful for interested applicants and ensure that foreign investors shoulder the risk.
International students in the US can apply for the EB-5 program, and they are eligible to receive generous benefits immediately upon submitting their application such as the ability to work for any employer and travel visa-free. If their application is successful, the investor, their spouse, and unmarried children under 21 are all provided lawful permanent residency. Therefore, Green Card holders can enter the American job market, explore education opportunities, and travel freely.
To apply for the program, immigrants must provide proof of lawful funds and invest in an American commercial enterprise. They must also plan to create or preserve 10 permanent full-time jobs for US workers.
Since the EB-5 program has been updated, the minimum investment amount has been raised to counter inflation. Now, you must invest at least $1.05 million for your application to be accepted. Additionally, the government is making strides to ensure all investments focus on targeted employment areas that require more capital and jobs by offering a lower entry point ($800,000) for investment.
Considering the changes the US government has made to the EB-5 program, international students can reap several benefits. If the foreign students’ parents complete the investment program, they will automatically receive work authorization. Their status will prevent them from needing employer sponsorship, which is very difficult to obtain. This is because the government sets a numerical cap on work visa applications annually. Even after an immigrant receives a work visa, it may take many years until they obtain a Green Card.
By avoiding this ‘lottery system’, international students can enter the job market and continue living in the United States. If the investment is not successful and no Green Card is received, the investor, their spouse, and children can still take advantage of residency while they are waiting to see results.
Many legal firms serve clients interested in the EB-5 visa program, but Reid & Wise has become a pioneer in the space. The international law firm with offices in New York, Los Angeles, and Shanghai builds cultural bridges between America and China. Its specialized services range from EB-5 support to class action suits, M&A deals, and more. Since Reid & Wise offers end-to-end legal support for international clients, its immigration services are unmatched.
The firm’s team is highly equipped to accommodate high-net-worth immigrants and business owners globally, specifically in China, due to its team’s Mandarin fluency. Reid & Wise Partner and Co-Leader of the immigration department, F. Oliver Yang explains the firm’s differentiators. “Reid & Wise stands out in the legal landscape because we are one of the largest firms that provides unparalleled Chinese support language,” he says. “Additionally, we surpass our competitors by offering a wealth of services besides EB-5 support. Reid & Wise is a trusted partner for commercial litigation, divorce filings, and other specialties. Our team strives to provide a comprehensive service that covers a plethora of common legal needs.”