Introduced to attract foreign investment and facilitate job creation in the US economy, the program has become very popular among affluent investors since the recent global recession. Recently, the US Congress has extended the investment immigration program till September 30, 2016. There are many myths and misconception surrounding the US EB-5 program.
The EB-5 Visa Guarantees Permanent Residence
The biggest misconception is that every EB-5 visa holder is assured the coveted green card i.e. the right to permanent residence in the USA. Qualifying for the green card involves something more than just complying with the minimum investment threshold requirements.
The investment must be made in an at-risk enterprise that does not guarantee return of capital or profits on the investment. The applicant must provide proof of source of funds along with a detailed business plan in an I-526 petition. Upon approval of the petition and availability of the EB-5 visa, the applicant and accompanying family members can apply for an EB-5 green card.
The green card is issued conditionally for a period of two years. After this period, the applicant must submit proof of continued compliance with all the requirements of the program. The conditions are subsequently removed and the right to permanent residence becomes absolute only after thorough scrutiny by the USCIS and other government agencies. Many investors fail to meet conditions of the program and are left with an investment in the United States.