Exciting New Approach Could Rescue Floundering Green Card Applications
Welcome back to Build Your Dream.
I have exciting news. American Lending Center has launched a new EB-5 “rescue” opportunity for those EB-5 investors in conditional permanent residence but lacking sufficient job creation credits for permanent residency.
This new approach is intended to help EB-5 investors who through no fault of their own are unable to meet job creation requirements for a permanent green card – permanent residence in the United States. This approach allows them to make an “add-on” investment in order to meet the job requirements without starting the process over from the beginning.
This exciting initiative is being led by Kraig Schwigen, ALC’s vice president for strategic development. Kraig recently led the panel “EB-5 Basics for New Projects” at the 2024 Global Mobility & Investment Summit in Miami. He and Steve Parnell, our senior director of global marketing, introduced aspects of the rescue project approach in that summit’s Agents Top Project competition.
Define The Problem
As most of you know, the EB-5 program is designed to allow potential immigrants to invest in projects that create jobs. It’s a win-win, providing a path to becoming a U.S. permanent resident while enhancing the American economy (which is one big reason why we do what we do). The United States Citizenship and Immigration Services (USCIS) administers the EB-5 program.
Before the Reform Act, a minimum investment of $500,000 was required in projects located in Targeted Employment Areas (TEA), with the requirement that 10 jobs per investor were created and maintained. This investment was part of the process for Conditional Permanent Residence (CPR). The job creation was and remains a requirement for a potential permanent green card.
But due to circumstances beyond some investors’ control, such as the COVID-19 Pandemic, some projects failed to meet those job targets. That left some investors in limbo – often holding a conditional green card and residing in the U.S., but without fulfilling the required job creation criteria for a permanent green card.
New Rules To The Rescue
ALC believes its unique approach combined with a select few projects offers a lifeline to those who were not able to meet the job creation requirements with their initial EB-5 investment. As long as they have maintained lawful status, meaning they still have a conditional green card and an open application, a second investment to another project creating jobs is allowed.
“There are thousands of investors in this position who have been largely ignored by our industry. At ALC we are trying to help them make the best of a bad situation,” Schwigen said. “We can’t just leave these people hanging when we can help them reach their goal of permanent green cards for themselves and their families.”
A key to the rescue approach is the government’s agreement that the first investment counts toward the minimum total investment required. So if someone invested $500,000 initially, they can qualify for a permanent card by investing another $300,000 in a new project – as long as the minimum 10 jobs created requirement is met.
Our first application for this approach has been submitted to the USCIS. We’re confident that the agency will see things our way, but obviously we will wait for their decision.
The basic requirement for the USCIS to favorably consider a permanent resident (green card) request through the EB-5 process is an $800,000 investment creating at least 10 jobs in a TEA or High Unemployment Area (HUA), or a $1,050,000 investment outside those areas, also with creation of at least 10 jobs. There are a certain number of visas set aside for TEA or HUA investments, making that a quicker route to permanent residency.
Already Established CPR
Another key to making these rescue operations work – failed or failing investors with CPR status have the option of using a different regional center. The EB-5 program requires that pooled investments go through regional centers; here at ALC, we have 14 regional centers, covering the entire continental United States.
“ALC is not involving itself in the financial aspects of the initial EB-5 investment. Our focus is upon satisfying the lack of job creation from the initial EB-5 investment,” Schwigen said. “As long as they have the conditional permanent residence status, then we believe they can do the changes necessary…they can satisfy the requirements with (a project that has) significant amounts of job creation.” It’s up to the individual to resolve previous investment issues.
Bottom Line
As far as we are aware, ALC is among the first, if not the first, to begin coordinating these rescue projects. I know that Kraig and Steve have been considering this approach since before the Reform and Integrity Act passed in 2022.
Our motivation is simple. It is the right thing to do. It is the right thing for the investors trying to complete their journey to the American Dream. It is the right thing for a U.S. economy trying to create needed jobs.
We look forward to helping everyone Build Your Dream.
John Shen
CEO & co-founder
American Lending Center
About American Lending Center: A Financial Times (FT) Americas’ Fastest Growing Company
American Lending Center (ALC) supports U.S. economic growth and job creation by financing development across the country.
Since its inception in 2009, ALC has proudly provided over $1.65 billion in loans and investments to thousands of companies of all sizes, empowering them to grow and thrive. Over this time, we have helped create and/or retain more than 100,000 jobs in the American economy.
In 2022, ALC launched its new rural construction and development fund, with capital available for the construction of fixed assets of all types in rural areas, including manufacturing, energy, infrastructure, hospitality, specialty use, multi-use, and other project types. Follow American Lending Center on LinkedIn, Facebook, and Twitter.
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