Economic glossary of the EB-5 program to obtain a Green Card

Sep 13, 2022

The EB-5 Immigrant Investor Program, also known as an investor visa, allows people to apply for a Green Card to live with their family in the United States. It is a long process that includes several phases and terms. So we’ve created a glossary so you know exactly what each component means.

For an investment to qualify for the EB-5 program, it must meet certain requirements. Such as the generation of at least 10 full-time jobs and the participation of modern companies.

The process consists of 4 steps in which the interested party must complete various documents. Among them, Form I-526, which shows that the corresponding investment has already been made, and Form DS-260, which will allow you to apply for an immigrant visa. Among other objectives.

It is important to consider that the minimum amount to invest, according to US law, is US$800,000. And the normal period for obtaining it is approximately 2 years, a time that may decrease if the project is located in a rural area or with low employability (Target Employment Area).

Dictionary of terms of the EB-5 program to obtain the Green Card

Being a long process and numerous procedures, it is possible to observe a large number of technical words that we are probably facing for the first time. And being a sensitive issue, which includes large sums of money, it seems essential to know exactly what each of them means.

That is why at BAI Capital we have created a glossary of terms of the EB-5 program to obtain the Green Card in the USA. That will help you identify main elements and give them the best use.

Economic terms related to EB-5 and Green Card

  • Subscription Agreement: Securities and Exchange Commission documents are typically LP, LLC, or PPM subscription agreements. To become a member of any of these formats, the interested party must subscribe to this entity.
  • EB-5 Regional Center: These are public or private entities that promote job creation, regional production, domestic capital investment, and economic growth.
  • Accountants: They are in charge of maintaining financial and tax records. They can also assist in qualifying EB-5 projects.
  • Economists: Group of professionals who support the Regional Centers to demonstrate job creation. It can occur due to RIMS II, IMPLAN, REDYN, REMI models, among others.
  • Expansion of Existing Businesses: A business that is already formed may qualify to receive an EB-5 investment if it increases the number of employees or the assets of the business by 40%.
  • Investment: Capital invested to promote the business objectives of a company or enterprise.
  • Accredited investor: By being accredited, you have greater facilities to invest with high risk. A person can be categorized as an accredited investor if they have a minimum net worth of US$1,000,000.
  • Fund model: Interested investors receive direct participation in a new investment fund. This in exchange for investing capital for use in the investment. Or participation in the company’s job creation process.
  • Direct Participation Model: Investors receive direct participation in the existing project. In exchange for investing their capital to be used in creating work for the company.
  • Troubled businesses: Businesses that after 2 years of operation have experienced a capital loss during the period prior to the date of the Form I-526 result.

Investing in BAI Capital is investing in the United States

As we have seen, one of the greatest benefits of investing in the USA is the possibility of entering the EB-5 program. And in this way obtain the permanent residence permit, or Green Card.

BAI Capital or Become American Investor LLC is a boutique firm with more than 12 years of experience. Specialized in raising, investing and managing private capital. Mainly for capital investments in real estate development projects in the United States.

All BAI Capital real estate projects are under the rules and regulations of the EB-5 program. Therefore, investing in BAI Capital allows investors to receive the Green Card. And with this enjoy the benefits of nationality.

Now you are familiar with the economic terms related to the EB-5 program. If you are looking to protect your capital from inflation or want to know how to obtain US residency, fill out our contact form.

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