Investments in the USA

Investments in the USA

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  • Stephen Parnell
    Stephen Parnell
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    Win Win Visa Route To America
    A little known visa option has made it possible to relocate permanently or to retire in The USA or even obtain US citizenship. The EB5 investment visa pilot program provides hope for immigrants who have not previously found a visa option which could provide the answer to their emigration dreams.

    Existing programs such as the E2 visa did not allow retirement or provide for the security of permanent residence for all the family, often children had to leave the USA on reaching 21 after finishing their education, there were also concerns following recent TV exposés on both the BBC and ITV flagging up fraudulent businesses sold to gain E2 visas.

    Under the EB5 pilot program, immigrants receive green cards for themselves, their spouse and children under 21 in return for investing $500,000 in a business located in a rural or high employment area. With currency exchange rates presently strongly in favor of the immigrant the required investment is very affordable to many foreigners. Its a win win scenario; the business gets capital, residents get jobs and investors gets the security of green cards and are free to live anywhere in the USA.

    At a time when the USA is facing recession the requirement of the program for 10 jobs to be created per investor adds crucial jobs to areas in need. The program has up to 5000 places equating to the creation of 50,000 jobs and massive investment in the USA. There is considerable importance placed on this particular visa program by those responsible in the US government as an excellent method of obtaining overseas investment in America and creating employment.

    Investors have a choice of at least 17 US government approved regional centers which offer the program in different locations throughout the USA including farms in the mid west, ski slopes in resort areas, loans to blue chip companies including a conference center on the eastern seaboard, new industries such as ethanol production in the south, investment in a Marriott hotel, and recently a brewery in Milwaukee.

    However some centers are more proven and tested than others, as Andrew Bartlett a leading relocation specialist and author of several articles and guides on the pitfalls of moving to Florida states. It is important to identify both the pros and cons of regional centers.

    Bartlett who has spent several months researching and visiting the various regional centers states that the dilemma for many overseas investors is that although all centers have been approved by US immigration service there are critical questions still to be answered such as the number of successful approvals, which centers have returned their investors funds and what are the implications of processing time and exit strategies for the return of investments,

    Finding out in depth information can be difficult as some excellent centers are relatively unknown whereas others though well publicized, may not be the best fit for your particular circumstances. Relatively few attorneys have worked extensively on the EB5 visa and other sources of information such as web sites and brochures can be either to sales orientated, or focus on the legal nitty gritty rather than the all important wider picture.

    A key point to be wary off is that all too often regional center brochures focus naturally enough on the positives but it is important to obtain an independent perspective to ascertain the negatives as implications can be far reaching but not readily apparent, and don't expect the regional centers to verify points if you do not know what questions to ask!

    For example one of the criteria required for the green card relates to job creation meeting the required criteria for the EB5. However good the return on investment may be, if a particular project fails to create the required number of jobs there is the risk that the visa could be revoked after two years. It is interesting to note that investors from some countries have focused on schemes which offer a lower investment return but monitor more closely the employment criteria

    For those wanting security and the flexibility to work, run a business or to retire the EB-5 has certain distinct advantages, but there are also some important caveats you need to be aware of.

    More information on the centers and those immigrants who have gone down the EB5 route can be found on http://www.EveryVisa.com

    Stephen Parnell has advised hundreds of British residents on relocating, investing and buying property in the USA. He can be reached by email at steve@lynxbanc.com or through his company web site at http://www.lynxbanc.co.uk
    • 23 May 2008, 12:45 pm