For Foreign Investors Entering Hawaii by Non-Immigrant and Immigrat Visa Programs

One of specializations of Hawaii International Real Estate, LLC is providing services for foreign investors who can start a new business in Hawaii, who can be transferred to Hawaii, or who are able to invest $500,000 or $1,000,000 in the Hawaiian economy on some special conditions. These investors are eligible to apply for a non-immigrant visa or an immigrant visa known as a Green Card. The field of Hawaii International Real Estate, LLC expertise is Hawaii real estate, but not the immigration law. Accordingly, we offer full Hawaii real estate services related to finding the best investment residential and commercial real estate or business in Hawaii. We are very closely working with immigration attorneys who consult our clients about legal aspects of immigration process. Our partners can provide you with the information about non-immigrant visas (E-1 Treaty Trader Visa (E-1 visa), Treaty Investor Visa (E-2 visa), Intra-Company Transfer Visa (L-1 visa) ,and/or immigrant visa (Green Card through investment (EB-5 Visa), and other legal immigration and business issues. The major objective of Hawaii International Real Estate, LLC is to assist foreign investors to find and to acquire a business in Hawaii qualified for anon-immigrant visa or immigrant visa, and in purchasing a home located near by this business. Hawaii International Real Estate,LLC is very proud to provide you the best service in Hawaii. We reviewed numerous U.S. Citizenship and Immigration Service  Web sites and summarized the basic information about these programs for foreign investors below. Thank you for visiting our site!

Foreign Investors: A Visa or Green Card to Live Your Dream in Hawaii

E-1 Treaty Trader Visa

E-2 Treaty Investor Visa

L-1 Intra-Company Transfer Visa

EB-5 Visa or Green Cards through Investment

Hawaii Department of Business, Economic Development and Tourism Regional Center

EB-5 Visa Related Publications

Overview

The Immigration and Nationality Act provides non-immigrant visa status for a national of a country with which the United States maintains a treaty of commerce and navigation who is coming to the United States to carry on substantial trade, including trade in services or technology, principally between the United States and the treaty country, or to develop and direct the operations of an enterprise in which the national has invested, or is in the process of investing a substantial amount of capital. For a list of Treaty Countries, click here.

Requirements: Treaty Trader

• The applicant must be a national of a treaty country.
• The trading firm for which the applicant is coming to the U. S. must have the nationality of the treaty country.
• The international trade must be "substantial" in the sense that there is a sizable and continuing volume of trade.
• The trade must be principally between the U.S. and the treaty country, which is defined to mean that more than 50 percent of the international trade involved must be between the U.S. and the country of the applicant's nationality.
• Trade means the international exchange of goods, services, and technology. Title of the trade items must pass from one party to the other.
• The applicant must be employed in a supervisory or executive capacity, or possess highly specialized skills essential to the efficient operation of the firm. Ordinary skilled or unskilled workers do not qualify.

Requirements: Treaty Investor

• The investor, either a real or corporate person, must be a national of a treaty country.
• The investment must be substantial. It must be sufficient to ensure the successful operation of the enterprise. The percentage of investment for a low-cost business enterprise must be higher than the percentage of investment in a high-cost enterprise.
• The investment must be a real operating enterprise. Speculative or idle investment does not qualify. Uncommitted funds in a bank account or similar security are not considered an investment.
• The investment may not be marginal. It must generate significantly more income than just to provide a living to the investor and family, or it must have a significant economic impact in the United States.
• The investor must have control of the funds, and the investment must be at risk in the commercial sense. Loans secured with the assets of the investment enterprise are not allowed.
• The investor must be coming to the U.S. to develop and direct the enterprise. If the applicant is not the principal investor, he or she must be employed in a supervisory, executive, or highly specialized skill capacity. Ordinary skilled and unskilled workers do not qualify.

E-1 Visa Ineligibility / Waiver

The non-immigrant visa application Form DS-156 lists classes of persons who are ineligible under U.S. law to receive visas. In some instances an applicant who is ineligible, but who is otherwise properly classifiable as a treaty trader or treaty investor, may apply for a waiver of ineligibility and be issued a visa if the waiver request is approved.

Applying for the Visa

Applicants for E-1 visas should generally apply at the U.S. Embassy or Consulate with jurisdiction over their place of permanent residence. Although E-1 visa applicants may apply at any U.S. consular office abroad, it may be more difficult to qualify for the E-1 visa outside the country of permanent residence.  As part of the visa application process, an interview at the embassy consular section is required for visa applicants from age 14 through 79.  Persons age 13 and younger, and age 80 and older, generally do not require an interview, unless requested by embassy or consulate.  The waiting time for an interview appointment or applicants can vary, so early visa application is strongly encouraged. E-1 visa wait times for interview appointments and visa processing time information for each U.S. Embassy or Consulate worldwide is available on our website at Visa Wait Times, and on most embassy websites.  During the E-1 visa application process, usually at the interview, an ink-free, digital fingerprint scan will be quickly taken.  Some E-1 visa applications require further administrative processing, which takes additional time after the E-1 visa applicant's interview by a Consular Officer.

Required Documentation

• Non-immigrant Visa Application, Form DS-156, completed and signed. The DS-156 must be the electronic "e-form application" available by selecting Nonimmigrant Visa Application Form DS-156.
• Non-immigrant Treaty Trader/Treaty Investor Application, Form DS-156E, completed and signed.
• A passport valid for travel to the United States and with a validity date at least six months beyond the applicant's intended period of stay in the United States (unless country-specific agreements provide exemptions). If more than one person is included in the passport, each person must complete a Form DS-156 application.
• One (1) 2x2 photograph. See the required photo format explained in Nonimmigrant Photograph Requirements.
• Supplemental Non-immigrant Visa Application, Form DS-157 completed for all male non-immigrant visa applicants between the ages of 16 and 45, regardless of nationality and regardless of where they apply. It is also required for all applicants from state sponsors of terrorism age 16 and over, irrespective of gender, without exception. Four countries are now designated as state sponsors of terrorism, including Cuba, Syria, Sudan, and Iran. Select Special Processing Procedures to learn more. This form provides additional information about your travel plans. You should know that a consular officer may require any nonimmigrant visa applicant to complete Form DS-157.

What are the Required E-1 Visa Fees?

• Non-immigrant visa application processing fee - For current fees for Department of State government services select Fees.
• Visa issuance fee - Additionally, if the E-1 visa is issued, there will be an additional E-1 visa issuance reciprocity fee, if applicable. Please consult the Visa Reciprocity Tables to find out if you must pay a E-1 visa issuance reciprocity fee and what the fee amount is. If there is a fee for issuance for the E-1 visa, it is equal as nearly as possible to the fee charged to United States citizens by the applicant's country of nationality.

Additional Documentation

An applicant for a Treaty Trader E-1  visa must first establish that the trading enterprise or investment enterprise meets the requirements of the law, and complies with the many requirements for the E-1 visa classification. The consular officer may provide the applicant with special forms for this purpose. The applicant can expect the consular officer to request additional documentation, to make a determination about eligibility for a Treaty Trader  visa. It is impossible to specify the exact documentation required since circumstances vary greatly by applicant.

U.S. Port of Entry

An E-1 visa allows a foreign citizen coming from abroad, to travel to the United States port-of entry and request permission to enter the U.S.  Applicants should be aware that an E-1 visa does not guarantee entry into the United States. The Department of Homeland Security, U.S. Customs and Border Protection (CBP) officials have authority to permit or deny admission to the United States.  If you are allowed to enter the U.S., the CBP official will determine the length of your visit on the Arrival-Departure Record  (Form I-94). Since Form I-94 documents your authorized stay in the U.S., it’s very important to keep in your passport.  In advance of travel, prospective travelers should review important information about Admissions/Entry requirements, as well as information related to restrictions about bringing food, agricultural products or other restricted/prohibited goods explained on the Department of Homeland Security, Customs and Border Protection website. Upon arrival (at an international airport, seaport or land border crossing), you will be enrolled in the US-VISIT entry-exit program. In addition, some travelers will also need to register their entry into and their departure from the U.S. with the Special Registration  program. The Department of Homeland Security, Customs and Border Protection Internet site offers additional information on Admissions/Entry requirements.

Staying Beyond Your Authorized Stay in the U.S. and Being Out of Status

• You should carefully consider the dates of your authorized stay and make sure you are following the procedures under U.S. immigration laws. It is important that you depart the U.S. on or before the last day you are authorized to be in the U.S. on any given trip, based on the specified end date on your Arrival-Departure Record, Form I-94. Failure to depart the U.S. will cause you to be out-of-status.
• Staying beyond the period of time authorized by the Department of Homeland Security (DHS) and being out-of-status in the United States is a violation of U.S. immigration laws, and may cause you to be ineligible for a visa in the future for return travel to the U.S.  Select Classes of Aliens Ineligible to Receive Visas to learn more.
• Staying unlawfully in the United States beyond the date Customs and Border Protection (CBP) officials have authorized--even by one day--results in your E-1 visa being automatically voided, in accordance with INA 222(g). Under this provision of immigration law, if you overstay on your non-immigrant authorized stay in the U.S., your visa will be automatically voided.  In this situation, you are required to reapply for a new non-immigrant visa, generally in your country of nationality. 
• For non-immigrants in the U.S. who have an Arrival-Departure Record, Form I-94 with the CBP admitting officer endorsement of Duration of Status or D/S, but who are no longer performing the same function in the U.S. that they were originally admitted to perform (e.g. you are no longer working for the same employer or you are no longer attending the same school), a DHS or an immigration judge makes a finding of status violation, resulting in the termination of the period of authorized stay.

Additional Information

General Visa

• No assurances regarding the issuance of E-1 visa can be given in advance. Therefore final travel plans or the purchase of nonrefundable tickets should not be made until an E-1 visa has been issued.
• Unless previously canceled, an E-1 visa is valid until its expiration date. Therefore, if the traveler has a valid U.S. E-1 visa in an expired passport, do not remove the visa page from the expired passport. You may use it along with a new valid passport for travel and admission to the United States.

Family Members

Spouses and unmarried children under 21 years of age, regardless of nationality, may receive derivative E-1 visas in order to accompany the principal alien. The spouse of an E -1 visa holder may apply to DHS for employment authorization. Dependent children of an E-1 visa holder are not authorized to work in the United States.

Time Limits

Holders of E-1 visas may reside in the United States as long as they continue to maintain their status with the enterprise.

Further Inquiries

Questions on qualifications for various classifications and E-1 visa application procedures should be made to the American consular office abroad where the applicant intends to apply. Questions on conditions and limitations on employment should be made to the local USCIS office. Inquiries on E-1 visa cases in progress overseas should contact the appropriate  U.S. Embassy or Consulate handling your case.

Overview

Section 101(a)(15)(E) of the U.S. Immigration and Nationality Act provides for visa status for nationals of countries that maintain an appropriate treaty of commerce and navigation with the United States or that is considered to be a treaty country under U.S. law.

A Treaty Investor visa is not a substitute for an immigrant visa. Individuals wishing to remain in the United States indefinitely should apply for immigrant visas. Treaty investor  visas can be renewed or extended only if the investment or trade continues to meet all applicable requirements of U.S. immigration laws and regulations.

Treaty Investor Visa (E-2 visa):

The Treaty Investor visa is entitled for individuals intending to go to the United States to develop and direct the operations of an enterprise in which the national has invested; or is actively in the process of investing a substantial amount of capital.

To qualify as a Treaty Investor (E-2 visa):

• Requisite treaty exists;
• Individual and/or business possess the nationality of the treaty country and at least 50% of the business is owned by the treaty country, i.e., at least 50% of the company stock is owned by the treaty country, excluding/American citizens and U.S. Legal Permanent Residents (“Green Card” holders).
• Applicant has invested or is actively in the process of investing;
• Applicant's investment is substantial. It must be sufficient to ensure the successful operation of the enterprise;
• The enterprise is a real and operating commercial enterprise. Speculative or idle enterprises do not qualify;
• Investment is more than marginal, and is not solely for earning a living;
• The investor must be coming to theU.S. to develop and direct the enterprise. If applicants are not the principal investors, they must be employed as a supervisor, executive, or as the possessor of highly specialized skills.

Application Procedure

An applicant for a Treaty Investor visa (E-2 visa) must first establish that the trading investment meets the requirements of the law as stated above. Therefore, all applicants seeking E-2 visas for their owners or employees must apply with the US Embassy by the pace of the residence.

How to apply for an E-2 visa:

If a company is about to register for the first time or a year has passed since the last time they registered, the company is required to submit their supporting documents, including an employee’s individual application, by mail to our attention.

Once the E-/E-2 assistant reviews the file and verifies that all of the documents have been submitted, he/she will schedule an appointment date for the company and its employee.  

U.S. Citizenship & Immigration Service (USCIS) Change of status

Note: It is necessary to establish the company’s entitlement to E-2 visa status prior to the issuance of an E-2 visa to an investor or employee, even if the USCIS has authorized a Change of Status to E for a person in the United States. That status is valid only as long as the person remains in the United States. To obtain an E-2 visa, a complete application, with all required documentation, must be submitted to the Embassy for adjudication before an E-2 visa can be issued.

Processing Times

Evaluation of corporate files will take between four and six weeks and are reviewed on a first come first served basis. Alternatively, companies that have been approved within the last year and are applying on behalf of their employees shall receive an immediate interview. These time scales are approximations only, processing may be longer or shorter depending on our workload and the quality of the material submitted. Irrevocable business plans and travel arrangements should not be made until E-2 visas are actually issued.

Applications from persons who are resident in the consular district, but not physically present, will be accepted but a personal interview will be required after the initial screening of the application and supporting documents. No assurance is offered that an interview will necessarily lead to approval of the application and the issuance of an E-2 visa.

Because the nature of the Treaty Investor visa is complex and specific to the particular application, Consulate's employees will not discuss prospective E-2 visa situations nor respond to speculative questions on E-2 visa situations over the telephone or by mail. Once an application has been submitted, they will communicate with the company’s attorney/ point of contact as required on their particular case.

Do not contact the Consulate for information on the status of your case. You will be contacted if more information is required or when the officer is ready to schedule your interview.

Important Notice:

Prospective investors and E-2 visa applicants should always review regulatory requirements and seek professional advice from an immigration law attorney before submitting an E-2 visa application, if they feel that will help them organize their application and their business activities. At the same time, applicants should be aware that decisions about eligibility are made only by a Consul who reviews the application -- and then only after all of the information requested by the Consul has been received. Applicants should never rely on prospective business partners for immigration advice.

Family Members

Spouses and unmarried children less than 21 years of age, regardless of nationality, who wish to accompany or join the principal E-2 visa holder in the United States for the duration of his/her stay require derivative E visas. If applying separately from the principal, a copy of the marriage certificate and/or birth certificates for the children will be required in addition to the regular application documents. Spouses and/or children who do not intend to reside in the United States with the principal E-2 visa holder, but visit for vacations only, may be eligible to apply for visitor (B-2) visas, or if qualified, travel visa free under the Visa Waiver Program (VWP).

Receipt of the visa after issuance

Note that if the consular officer approves an employee’s E-2 visa, the passport along with the E-2 visa shall be returned to the applicant via the post office carrier. This procedure may take up to a week after the interview. As a result, please book your flight ticket accordingly.

Working on an E Visa

Spouses of E-2 visa holders may seek employment authorization on derivative E visas. For further information, please contact the U.S. Citizenship and Immigration Services (USCIS) upon your arrival in the United States or visit their site at http://www.uscis.gov/portal/site/uscis.

U.S. Port of Entry

Applicants should be aware that an E-2 visa does not guarantee entry into the United States. The U.S. Customs and Border Protection (USCBP) have the authority to deny admission. Also, the period for which the bearer of a Treaty Trader visa is authorized to remain in the United States is determined by the USCBP, not the consular officer. At the port of entry, an USCBP official validates Form I-94, Record of Arrival-Departure, which notes the length of stay permitted. Those persons who wish to stay beyond the time indicated on their Form I-94 must contact the U.S. Citizenship & Immigration Services (USCIS) to request Form I-539, Application to Extend Status. The decision to grant or deny a request for extension of stay is made solely by the USCIS.

Time Limits

Holders of E-2 visas may reside in the United States as long as they continue to maintain their status with the enterprise.

Overwiev
The L-1 visa category applies to aliens who work for a company with a parent, subsidiary, branch, or affiliate in the U.S. These workers come to the U.S. as intra-company transferees who are coming temporarily to perform services either
        in a managerial or executive capacity (L-1A visa) or
        which entail specialized knowledge (L-1B visa)
for a parent, branch, subsidiary or affiliate of the same employer that employed the professional abroad. The employee must have been employed abroad for the corporation, firm, or other legal entity (or an affiliate or subsidiary thereof) on a full-time basis for at least one continuous year out of the last three-year period to qualify. There is currently no annual cap on L-1 visas.

Note 1: Public Law 107-125 allowed aliens to qualify for L visas after having worked for 6 months overseas for employers if the employers had filed a blanket L petition and had met the blanket petitions' requirements.

The L-1 Visa Reform Act eliminates the 6 month exception that Public Law 107-125 implemented. All L-1 visa beneficiaries are now required to have been employed abroad for a 12-month period regardless of whether the beneficiary is obtaining L classification based on a blanket or as an individual. This provision applies only to initial L petitions filed after June 6, 2005. The 6 month rule should continue to be applied to cases involving extensions or changes of job duties within the L classification filed after the effective date, but in which the original status was obtained through a blanket process prior to the effective date based on the then existing eligibility requirements.

Note 2: The employer is not required to obtain a labor certification prior to petitioning in this category. Compensation level is not prescribed, but U.S. income must be sufficient to prevent the alien from becoming a public charge.

Dependents
Dependents (i.e. spouses and unmarried children under 21 years of age) of L-1 visa workers are entitled to L-2 visa status with the same restrictions as the principal. Dependents may be students in the U.S. while remaining in L-2 visa status. If it can be established that the spouse is accompanying or following to join the principal alien, the spouse may obtain an employment authorization under the L-2 visa classification. Minor children may not be employed under the L-2 visa classification.

Petition Document Requirements
A U.S. employer or foreign employer may file the I-129 petition, but a foreign employer must have a legal business in the U.S. The petition must be filed with:

         Evidence of the qualifying relationship between the U.S. and the foreign employer which address ownership and control, such as an annual report, copies of articles of incorporation, financial statements, or stock certificates;
        A letter from the alien's foreign qualifying employer detailing his or her dates of employment, job duties, qualifications and salary and demonstrating that the alien worked for the employer abroad for at least one continuous year within the three-year period before the filing of the petition in an executive or managerial capacity or in a position involving specialized knowledge; and 
       A detailed description of the proposed job duties and qualifications and evidence the proposed employment is in an executive or managerial capacity or in a position involving specialized knowledge.
If the alien is coming to the U.S. as a manager or executive (L-1A visa) to open or to be employed in a new office, also file the petition with evidence that:
       Sufficient premises to house the new office have been secured; 
       The beneficiary has, or upon establishment will have, the qualifying relationship to the foreign employer and the qualifying position; and
       The intended U.S. operation will be able to support the executive or managerial position within one year of the approval of the petition. This must be supported by information regarding:
            the proposed nature of the U.S. office (size and scope, organizational structure, and financial goals),
            financial information about the foreign entity (the size of the U.S. investment and the financial ability to remunerate the beneficiary and to commence doing business in the U.S.), and 
            the organizational structure of the foreign entity.
If the alien is coming to the U.S. in a specialized knowledge capacity (L-1B visa) to open or to be employed in a new office, also file the petition with evidence that: 
       Sufficient premises to house the new office have been secured;
       The business entity in the U.S is or will be a qualifying organization
       The petitioner has the financial ability to compensate the alien beneficiary and to begin doing business in the U.S.
Extending an Individual L-1 Visa Petition
A petitioner may apply for an extension of an individual L-1 visa petition using Form I-129. Supporting documentation is not required, except in those cases involving new offices or when requested. For details, please refer to 8CFR 214.2(l)(14)(i).

Blanket L Petition
Employers who regularly file L petitions may wish to consider filing for a blanket L petition in order to obtain continuing approval for itself (and some or all of its parents, branches, subsidiaries and affiliates in the U.S.). This simplifies the process of approving and admitting additional individual L-1A visa and L-1B visa workers.

The blanket L petition must be filed by a U.S. employer who will be the single representative between INS and the qualifying organizations and must be filed with copies of evidence that the:

     Petitioner and its branches, subsidiaries, and affiliates are engaged in commercial trade or services;
     Petitioner has an office in the United States that has been doing business for one year or more;
     Petitioner has 3 or more domestic and foreign branches, subsidiaries, or affiliates; 
     Petitioner and its qualifying organizations have obtained approved petitions for at least ten L-1 visa professionals during the previous year or have U.S. subsidiaries or affiliates with combined annual sales of at least 25 million dollars, or have a U.S. work force of at least 1,000 employees.
After approval of a blanket petition, the petitioner may file for individual employees to enter as L-1 visa professionals under the blanket petition. If the alien is outside the U.S., submit a completed Form I-129S and a copy of the Form I-797 (INS approval notice). If the alien is already in the U.S., the petitioner may file an I-129 to request a change of status, based on this blanket petition. An I-129 petition for a change of status must be filed with:
   A copy of the approval notice for the blanket petition;
   A letter from the alien's foreign employer detailing the alien’s dates of employment, job duties, qualifications and salary for the 3 previous years; and
   If the alien is a specialized knowledge professional, a copy of a U.S. degree, a foreign degree equivalent to a U.S. degree, or evidence establishing the combination of the beneficiary's education and experience is the equivalent of a U.S. degree.
Extending a Blanket L Petition
A petitioner may file an I-129 to extend an expiring blanket petition. The extension petition must be filed with:
    A copy of the previous approval notice for the blanket petition; and
    A summary of the employment of L-1 aliens admitted under the blanket petition during the preceding three years, listing, for each alien:
           His or her name; 
           Position(s) held during the period;
           Employing entity;
           Date of initial L-1 visa admission under the blanket;
           Date of final departure, if the alien has been transferred outside the United States, and;
           Documentation of any changes in approved relationships and additional qualifying relationships.

Did you know that Hawaii is a regional center? In Hawaii there is an opportunity for foreign investors to obtain a Green Card investing in certain Hawaii business amount of $500,000, but not $1,000,000! Of the 10,000 investor visas available annually in the USA, 5,000 are set aside for those who apply under the Regional Center Pilot Program. See more below.

EB-5 visa

Hawaii Regional Center

Hawaii Department of Business, Economic Development and Tourism  Regional Center
Geographic Area Covered: the entire Hawaii state
Allowed Activities: Tourism of all kinds; Technology, Research & Development and Life Sciences; Transportation in Air, Harbors and Highways; Trade & Manufacturing; Health Services: Hospitals, Nursing homes, Private medical offices, In-Home healthcare, Outpatient services, Ambulance services and Laboratories; Agriculture and Food Processing, Aquaculture, Major agricultural production, Exotic and specialized crops; Higher Education, both Exported and Foreign Students; Leashold improvements in commercial real estate; Alternative energy in Geothermal, Hydro-power, Ocean Thermal, Solar and Wind; and Motion Picture and TV Productions

Press Releases on EB-5 Visa

• For Foreign Investors, Profit Isn’t Only Goal
• Foreigners Invest Greenbacks in Return for Green Cards
• U.S. Government’s EB-5 Program Offers Foreign Investors Green Cards for Job Creation
• SCLA Development Hinges on Chinese Investors
• Asian Funds Sought for Redevelopment
• South Dakota becomes land of opportunity
• China trade outpost may join Pabst site
• U.S. OKs regional development zone
• EB-5 Visa Program Seeks to Pump Investment Dollars into New Orleans
• Investment plan could create jobs

For Foreign Investors, Profit Isn’t Only Goal

The New York Times - By Fred A. Bernstein (March 16, 2008)

Under the program, known as EB-5 visa, a foreigner receives a green card for investing $500,000 in a business or high- unemployment area…’It’s win-win-win,’ said Steve Yale-Loehr, an EB-5 visa expert who teaches immigration law at Cornell University: the business gets capital, residents get jobs and the investor gets a green card…

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The Washington Post - By Cecilia Kang (December 08, 2007)

Though the number of applicants each year is still far below the quota, Berez said the amount invested through EB-5 visa was $500 million last year and is projected to rise to $800 million in 2007 and $1 billion in 2008…Investors initially receive two-year residencies while immigration authorities monitor their investments and participation in the program. After a foreign investor passes all checks by the USCIS and the regional center verifies that the investment produced 10 jobs, the applicant is granted permanent residency…"

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The Wall Street Journal - By Miriam Jordan (November 02, 2007)

An obscure immigration program is pumping millions of dollars from foreign investors into dilapidated inner cities and employment-starved rural areas across the U.S. These investors aren’t focused on financial returns, however: They’re in it to get green cards.

In recent years, a growing list of enterprises — in agriculture, tourism, renewable energy, education and transportation — have benefited from a little-known federal program known as EB-5 visa, or the immigrant-investor visa. It offers a tantalizing trade-off for foreigners who want to establish residency in the U.S.: For a $500,000 investment in a distressed area, a foreigner and his immediate family become eligible for conditional green cards. They become permanent a few years later upon evidence that the investment has created at least 10 jobs for U.S. workers.

The program, administered by U.S. Immigration & Citizenship Services, essentially encourages wealthy foreigners to buy their way into the U.S. Put in place in the early 1990s, it is widely regarded as a response to efforts by Canada and Australia in the late 1980s to attract investors keen to immigrate. But the U.S. program is considered the most stringent because it requires proof that the investment has produced new jobs before permanent residency is granted.

The U.S. program lately has become popular among investors from South Korea, China, Venezuela and Saudi Arabia desperate to bypass the uncertainty and years-long wait to gain residency through traditional means. Helping fuel the new interest are immigration attorneys and others aggressively marketing the program abroad.

"The opportunity is truly beautiful to individuals who want to live and contribute their energy in the United States," says Morrie Berez, chief of the EB-5 program at the immigration agency. "And it creates economic growth and especially jobs for Americans." The job-creation aspect of the program appears to have neutralized criticism from anti-immigration activists.

Under the program, developers sometimes working with local officials apply to the Immigration agency for "regional center" status, typically in a distressed area. Once approved, a regional center markets its program overseas to investors who become equity partners.

The projects promise only modest returns. But that isn’t the main concern for investors such as Sungtae Kim, a Korean software entrepreneur who wanted to come to the U.S. to give his daughters better opportunities. After failing to qualify for a U.S. alien-worker program, he heard about EB-5 from a friend in Los Angeles. Soon, he was in touch with the Seoul branch of a U.S. law firm that specializes in the program.

After attending a seminar in Seoul to learn about the regional centers, Mr. Kim decided to put $500,000 that he had saved over 20 years from a software business into a dairy farm in Veblen, S.D. "I wanted to give my two daughters a better life and good education," he says. Two weeks ago, Mr. Kim and his family moved to a Los Angeles suburb known for its strong public schools. Mr. Kim, who has never visited a dairy farm, hopes to once he is settled.

South Dakota, one of the first states to tap into the program in 2004, credits the immigrant- investor scheme with reviving its dairy industry and starting a new meat-packing sector. The state had been trying to attract foreign investment in its dairy industry before it discovered the EB-5 program. It got regional-center qualification for a swath of 45 contiguous counties in the eastern part of the state. In two years, the program has helped fund new dairy farms worth $90 million and beef-processing plants valued at $52 million, state officials say.

"Suddenly we have extra capital to accelerate development and help South Dakota farmers who want to go large-scale but lack capital," says Joop Bollen, who oversees the state’s program, which has attracted European and Asian investors.

In the financial year that ended Sept. 30, the immigration agency awarded 803 conditional EB-5 green cards to investors and their families, up from 247 in 2004. Mr. Berez hopes by 2011 to be issuing all 10,000 of the green cards available each year under the program — a potential of nearly $2 billion in annual investments, he estimates.

Around the U.S., 17 regional centers under the EB-5 visa program have attracted about $500 million in foreign funds. Projects include dairy farms in Iowa, nut farms in California, schools and health-care facilities in Alabama, ethanol plants in Texas, and a film and TV production studio in Pennsylvania. Mr. Berez’s team is considering several more areas.

Tom Willis, chief executive of Conestoga Energy Partners LLC in Liberal, Kan., recently guided Korean investors around a new ethanol plant in which they are minority partners. "Their dollars allow us to create jobs, a greater tax base and grow our schools," Mr. Willis says. "You hear about people leaving rural America…This helps us control our destiny."

The program isn’t a slam-dunk for applicants. The U.S. government temporarily suspended it in 1998 to tighten up procedures that enabled some investors to disburse less money than agreed. Mr. Berez, a former official at the Government Accountability Office, was charged with overhauling the program in 2002. Now, investors must put up the entire $500,000 before they can file their green-card petition.

To get his family to the U.S., French law professor Eric Canal-Forgues, a consultant to the World Trade Organization, put his life savings into a Philadelphia regional center that involved partially financing Comcast Corp.’s new international headquarters.

"I have gotten from Europe everything I want," says the 45-year-old Paris native. "The United States is a place where you can do many things." He wants to further his career and raise his two young children as fluent English speakers.

It took Mr. Canal-Forgues almost a year to amass the paperwork required, which included showing the origins of the $500,000 he was committing, his tax returns, pay stubs and employment contracts. In May, he received his conditional approval from Immigration, pending an interview at the U.S. embassy in Paris. He hopes to move to the U.S. with his family by mid-2008.

"The EB-5 visa program is one of the most complex and heavily scrutinized immigration programs," says Stephen Yale-Loehr, Mr. Canal-Forgues’s attorney and an expert on EB-5 visas. "Investors must show every cent was earned legally."

The Immigration agency also needs to ensure terrorists aren’t buying their way into the U.S. And, given U.S. sanctions, an Iranian EB-5 applicant under consideration must prove that he didn’t make money from doing business with that country’s government.

In Seattle, critics have complained that revitalization of an area south of downtown has raised rents for industrial tenants. But the program hasn’t drawn notable criticism from immigration-restrictionist groups. If jobs are being created in exchange for visas through a process you can verify, I don’t think we can object to it, says Ira Mehlman, a spokesman for the Federation for American Immigration Reform, which calls for a clampdown on both legal and illegal immigration. But he suggests that the program should remain small in scope.

Competition for EB-5 dollars is intensifying as more areas win regional-center designations. Venture capitalists William Hungerford and Tim Milbrath have been traveling to the Middle East seeking investors for a fund that will invest in extended-stay hotels, private clinics and other infrastructure in New Orleans and the Gulf Coast. South Dakota’s Mr. Bollen recently put in calls to Argentina and Brazil, hoping to tap into a new pool of foreigners eager to live in the U.S. "We want to continue to pick as much fruit from the EB-5 tree as we can," he says.

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Victorville Daily Press (Victorville, CA) - By Brooke Edwards (April 25, 2008)

More than 20,000 local jobs and $1.6 billion in development are contingent on start-up funds from Chinese investors…He calls the EB-5 program a win-win for the city and the investors…’We get to use their money, and they get to be first in line for visas.’

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Asian Funds Sought for Redevelopment

Milwaukee Journal Sentinel - By John Schmid (March 27, 2008)

The program offers U.S. residency rights to qualified foreign investors who invest at least $500,000 and create at least 10 jobs in rural or distressed areas within a designated ‘EB-5 Immigrant Investment Zone’…Qualified investors from almost any part of the world can apply for residency under an EB-5 Immigrant Investment Zone, so named because it hinges on a class of visa called the EB-5…The Association to Invest in USA, a trade association of EB-5 zones, estimates that the 17 zones could bring in a total of $1 billion in foreign investment this year…"

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DISCLAIMER: This site was made available by the Hawaii International Real Estate, LLC for educational purposes only as well as to give you general information and a general understanding of some non-immigrant visa and immigrant visa related investment options , not to provide a specific legal advice. The site should not be used as a substitute for competent legal advice from a licensed attorney in your state. For more specific information on this issue request an advice of a licensed immigration attorney.

Read More Recent Publications Related to EB-5 Immigrant Investment Green Card Program

South Dakota becomes land of opportunity

American News (Aberdeen, SD) - By Emily Arthur-Richardt (October 22, 2007)

Rodney Elliott first heard about the opportunities South Dakota could offer him and his family at an informational meeting in Northern Ireland.

"South Dakota was promoted right across the world for what they could do for dairy farmers," said Elliott, 43, who now lives in a house on Lake Poinsett with his wife, Dorothy, and three teenage children. "We went to information night in February 2004, and following the first information night, I decided to take a little trip."

That first trip brought Elliott to South Dakota, where he visited the state and toured some of the dairy farms around the area. Two years and at least five trips to South Dakota after that first meeting, Elliott was moving his family across the world and opening a dairy farm. The new beginning was partly because of Elliott's persistence that there was something better out there and partly because of a program known as EB-5.

EB-5 is an employment-based visa category that gives foreign investors their green cards if they invest $500,000 or $1 million – depending on the location – in a U.S. business.

"I've been in dairy all my life, but the opportunities back in Northern Ireland aren't what they are here," said Elliott, who is considered a permanent resident in the United States, while his wife, who was born in Connecticut, is a U.S. citizen. "It was getting very difficult. Land prices are extremely high; land acquisition is very tough. It was just getting hard to make a living there."

While Elliott and his family had planned to move to the United States to live and work anyway, EB-5 gave them a way to do it.

Four Korean investors were brought on board to help with the financing, and Elliott became a general partner in a dairy operation in Hamlin County.

Drumgoon Dairy near Lake Norden milks about 1,500 head of cattle a day, Elliott said. A far cry from the approximately 150 head he had in Maguiresbridge, County Fermanagh, Northern Ireland. The South Dakota dairy farm, which is about five miles from their home, also employs about 20 people, he said.

South Dakota offered a lot of opportunity to build a business of a size I really wanted to do, Elliott said. It also offered an opportunity to work in an area we really liked.

Since coming to South Dakota, Elliott said his family has made a conscious effort to make South Dakota their home. The Elliott children go to school in Estelline, Elliott said the dairy farm tries to buy as many supplies in Hamlin County as possible, and the family often participates in community and social functions.

We like it very well here, Elliott said.

And while they would have maybe ended up in America anyway, it might not have worked out the way it did, he said. The Elliotts might not be in South Dakota and the dairy operation definitely wouldn't be the size it is, Elliott said.

He gives EB-5 much of the credit.

It's enabled us to have what we've always wanted," said Elliott, who hopes to buy off the investors after five years and have sole ownership. "We're just in our first year here, but it's given us a better life…. It was influential in our decision to come to South Dakota.

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China trade outpost may join Pabst site

Milwaukee Journal Sentinel - By Tom Daykin (July 12, 2007)

"The Milwaukee facility could take advantage of the recent designation of a federal economic development zone in southeastern Wisconsin that seeks to attract foreign investment. The Immigrant Investor Pilot Program offers visas to foreigners who invest at least $500,000 and create at least 10 jobs within the seven-county region. The Milwaukee area is among only about 15 Immigrant Investor Pilot Program zones. The Department of Homeland Security in May approved the zone for southeastern Wisconsin…

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U.S. OKs regional development zone

Milwaukee Journal Sentinel - By John Schmid (May 02, 2007)

On Tuesday, the Department of Homeland Security approved the creation of an economic-development zone in southeastern Wisconsin that's meant to attract foreign investment by offering United States residency rights to qualified investors…To lure entrepreneurs from around the world, the program offers visas to foreigners who invest at least $1 million - or $500,000 in areas that have high unemployment or are rural - and create at least 10 jobs within the seven-county metro region…"

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EB-5 Visa Program Seeks to Pump Investment Dollars into New Orleans

The Washington Diplomat - By Larry Luxner (March 15, 2007)

The prized green cards come courtesy of the little known EB-5 visa program, whereby non-Americans are granted U.S. residency if they invest at least $1 million in a commercial enterprise and create a minimum of 10 direct U.S. jobs in the process. But if the investment is made in a specially designated "targeted employment area (TEA) suffering from high unemployment or economic crisis, then the immigrant investor is required to invest only $500,000 and create 10 direct or indirect jobs…the U.S. government believes total investment through the EB-5 program into these regional centers has been running about $300 million to $400 million annually, but that by the end of 2008, it could jump to $1 billion a year. A maximum of 10,000 green cards may be issued annually under the EB-5 program, of which 3,000 are set aside for these designated regional centers…

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Investment plan could create jobs

The Bellingham Herald (Bellingham, WA) - By John Stark (January 24, 2005)

A wrinkle in U.S. immigration law, coupled with Whatcom County's location on the Canadian border, could tap into a new source of investment dollars to finance private job creation here. The federal government must approve the plan.

The Bellingham Whatcom Economic Development Council is applying to the U.S. Department of Homeland Security to get the county designated as a regional center under the Immigrant Investor Pilot Program. If the designation is granted, federal law would allow a foreign investor to earn permanent resident status in the United States by investing as little as $500,000 in a Whatcom County business if the investment created at least 10 new jobs, directly or indirectly.

The investor would get a temporary visa once a qualifying investment was made, and a permanent resident visa if the jobs were still here after two years. Rob Pochert, executive director of the development council, said the designation would be another arrow in the quiver to attract investment dollars to Whatcom County.

If the designation is approved, the opportunity would be marketed to foreign investors in a number of ways.

The development council and the Bellingham Whatcom Chamber of Commerce would market local investment opportunities to foreign investors who make inquiries. Such investors would be recruited in Canada by the nonprofit Pacific Corridor Enterprise Council, and on a worldwide scale by IMS Immigration Services Ltd., a company that specializes in helping would-be immigrants get legal status in the United States and other countries.

The company has offices in Canada, Korea, New Zealand and Australia.

Pochert said he hopes federal officials will respond to the application within four months.

If the feds approve the deal, immigration attorney Greg Boos said he doesn't think it will trigger a major rush of foreign capital into the county. But it will give the county equal status with other communities such as Philadelphia, New Orleans and the state of Hawaii that already have acquired the regional center designation. Boos said the federal immigrant investor program has been around for years, but until recently it was cumbersome to use, and only about 1,000 investors per year took advantage of it. Now the program has been overhauled and should be more attractive to the people it was meant to attract, he said.

The county's border location should make it a more attractive location for such investments than many other areas of the country, he added.

Jim Pettinger, president of International Market Access Inc., said he doesn't expect a big financial windfall for local companies, but the immigrant investor incentives could still have significant direct impact.

Pettinger's company provides services to companies trading across the U.S.-Canada border, and he operates a foreign trade zone in the Port of Bellingham's International Trade Building at 3873 Airport Way.

He compared the immigrant investor designation to the foreign trade zone. As he described it, the zone doesn't provide a lot of direct economic benefits under the current state of trade law between the U.S. and Canada. But the existence of the zone helps attract business inquiries that sometimes lead to business relationships, even if the zone itself winds up not being a part of that relationship, Pettinger said.

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DISCLAIMER: This site was made available by the Hawaii International Real Estate, LLC for educational purposes only as well as to give you general information and a general understanding of some non-immigrant visa and immigrant visa related investment options , not to provide a specific legal advice. The site should not be used as a substitute for competent legal advice from a licensed attorney in your state. For more specific information on this issue request an advice of your immigration attorney.