default logo

EB5 Glossary

EB5 Glossary

Adjudication: According to the law: “The legal process by which an arbiter or judge reviews evidence and argumentation including legal reasoning set forth by opposing parties or litigations to come to a decision which determines rights and obligations between the parties involved.” Your EB-5 investment may undergo adjudication at some point during the process.

Advance Parole: Permission to travel and return to the US before you receive CPR status while Form I-485 is pending.

At Risk Investment: An investment at risk of loss or gain, that is being used directly to create jobs and generate profit.

Bootstrapping: Investing a small amount of money in a company and keeping the project going with the revenue it generates. Bootstrapping is not permitted by the EB-5 investor visa program.

Bureau of Labor Statistics (BLS): Determines and reports statistics to the government regarding labor and employment in the US. The BLS also reports monthly data and unemployment rates for 7,300 areas in the US.

Capital: Tangible investment elements, such as cash, cash equivalents, inventory, property, and equipment.

Conditional Permanent Residence (CPR): Allows you to live legally in the US with the same privileges as permanent residents, such as traveling and working. Keep in mind that you must petition to have conditions removed. You obtain CPR when you get a conditional EB5 green card after your I-526 petition is approved.

Consular Processing: Applying for a green card at a US consulate in another country.

Derivatives: In the EB-5 program, family members also receiving immigrant visas through EB-5 investment are called derivatives. These include your unmarried children under 21, as well as your spouse.

Econometric Model: Uses statistics to examine a certain economic phenomenon. In the context of the EB-5 program, econometric models are used to determine the indirect job creation potential of regional centers. Models commonly used in the context of EB5 include RIMS II, IMPLAN, and REDYN.

Escrow Account: Gives a third party control of your money. EB-5 investors sometimes place funds in escrow before submitting Form I-526, to demonstrate commitment to the investment.

Equity Capital: Invested money.

E-2 Visa: Non-Immigrant Treaty Investor Visa.

Form G-325A: Accompanies Form I-485, and contains biographic information. Required if you are between the ages of 14 and 79.

Form I-485: Application to Register Permanent Residence or Adjust Status. EB-5 applicants who are already living in the US submit this form as part of the application for CPR status.

Form I-526: Immigrant Petition by Alien Entrepreneur. File this form and additional required evidence after making your EB-5 investment to obtain a conditional EB-5 green card.

Form I-693: Documents your medical and vaccine history.

Form I-829: File with USCIS to remove the conditions from EB-5 conditional green card.

Form I-94: Documents your arrivals and departure from the US. Also filed to extend a non-immigrant visa, to avoid becoming “out of status.”

Gerrymandering: Modifying the boundaries of districts to manipulate whether or not a certain region is a TEA.

Government Accountability Office (GAO): Monitors government spending of taxes. In the context of EB5, the GAO determines how much money has been invested in the US economy as a result of the EB-5 investor visa program.

Green Card: Documentation permitting permanent residence in the US, which can lead to the pursuit of citizenship. EB5 participants can obtain a conditional green card, leading to unconditional permanent resident status.

Guaranteed Returns: An arrangement in which you obtain annual returns on your investment. If you arrange for a guaranteed return, you will not qualify for an EB-5 green card.

Immigrant Investor Visa:  Can lead to permanent residence, or a green card, like the EB-5 investor visa.

Immigration and Nationality Act (INA): The INA defines the EB-5 investor visa program and its requirements. The INA also controls other aspects of immigration to the US, such as marking certain individuals as inadmissible.

Immigration and Naturalization Services (INS): Organization involved in early EB-5 legislation. INS was dissolved in 2003, and its duties were taken on by different governmental departments, including USCIS.

Inadmissible: Immigration status meaning you are ineligible to enter the US, usually due to criminal activity; if you are inadmissible you cannot obtain an EB5 investor visa.

Indirect Jobs: Jobs created indirectly by your EB5 investment in a regional center. For example, if you invest in a hotel that has gained regional center status, and a nearby airport opens an additional shuttle branch, the resulting jobs are considered indirect, and count towards your EB-5 employment quota.

Induced Jobs: Jobs created when workers who are employed either as a direct or indirect result of your EB-5 investment spend their wages.

Investor and Regional Center Unit (IRCU): A branch of USCIS that oversees regional center EB5 investment, processes Requests for Evidence (RFEs) sent to EB-5 petitioners, and denies and approves petitions. Currently the IRCU is referred to as USCIS Foreign Trader, Investor, and Regional Center Program (FTIRCP).

Lawful Permanent Residence (LPR): The status you achieve after having the conditions removed from your EB5 conditional green card.

Legal Seizure: Any loaned money you invest to get your EB-5 green card must be available to be legally seized if you cannot repay your debt. This means your personal assets can be taken and used to repay your loan if you do not pay it on your own.

Letter of Approval: Used by the government to acknowledge that a regional center has fulfilled all requirements to obtain regional center status.

Local Area Unemployment Statistics (LAUS): Statistics revealing local unemployment rates, which you can compare with the national average to determine whether the area in which you are interested in making an EB5 investment is a TEA.

L-1 Visa: Non-Immigrant Intra-company Transferee Visa.

Material Change: A dramatic shift in the operation of your EB-5 investment business or regional center project, compared to what you predicated in your business plan. For example, if originally employees work in a restaurant as waiters, and you change the business to a catering company so they are now driving and taking orders, this can constitute a material change. USCIS may also recognize material change if the timing for hiring and beginning projects does not align with your business plan, as well as for many other reasons.

Metropolitan Statistical Area (MSA): A geographic area with a population of at least 50,000, which includes an urban area.

Naturalization: Becoming a citizen of a country other than the one in which you were born.

Non-Immigrant Investor Visa: Does not lead to a green card. Used by individuals traveling, studying, or living temporarily in the US, without the intent of taking up permanent residence or seeking citizenship.

Out of Status: Living in the US out of status means your visa has expired, and you cannot apply to participate in the EB-5 investor visa program without regaining lawful status. Sometimes referred to as “unlawful status.”

Pilot Program (Regional Centers): Created by Congress in 1993 under Appropriations Act Section        610(c) to direct immigrant investment toward certain regions by creating regional centers.

Police Certificate: All police records collected on you over a certain time period, including a history of arrests and reasons for arrests.

Promissory Note: An irrevocable promise of payment. If you do not currently have the capital required to obtain an EB5 green card, you may be able to present a promissory note to your chosen investment enterprise.

Redemption Rights: An arrangement in which you can get your investment back. Arranging for redemption rights will disqualify you from the EB5 investor visa program, since your investment must be at risk.

Regional Center: A for-profit enterprise that is also an EB-5 investment opportunity. Legally defined as “any economic unit, public or private, which is involved with the promotion of economic growth, including increased export sales, improved regional productivity, job creation, and increase domestic capital investment.”

Request for Further Evidence (RFE): A request issued by USCIS for additional information to approve your I-526 petition or remove the conditions from your EB-5 green card. An RFE may require that you submit additional documentation or go in for an interview, for which your immigration attorney will prepare you.

Retained Earnings: In the context of the EB5 green card, retained earnings are generated as a result of your investment. For example, if you start a company, earn $300,000, pay yourself $100,000, and keep $200,000 in the corporate bank account, this money is considered retained earnings.  You cannot invest retained earnings in the EB-5 program.

Spravka: A reference your immigration lawyer may use to help you participate in the EB-5 investor visa program as a Russian national. A spravka can help your immigration attorney obtain certain records and background information required when you submit your initial EB5 petition.

Subscription Agreement: Signed by an EB-5 investor when working with a regional center. Presents the terms of your investment.

Targeted Employment Area (TEA): An area in the US with an unemployment rate that is 150 percent of the national average, or a rural region outside of a metropolitan area, with a population of 20,000 or less. EB-5 participants who select TEAs can invest $500,000.

Tax Treaty: A contract between governments which may dictate how much your income can be taxed. In the context of the EB-5 program, a tax treaty may indicate that, for example, if you obtain an EB5 green card to immigrate from Canada to the US and you are already paying income tax in Canada, you don’t have a pay again in the US.

Termination of Status: Revocation of your green card, putting you at risk for deportation. Failure to fulfill EB-5 investor visa program requirement will result in the termination of your status as a CPR.

USCIS: U.S. Citizenship and Immigration Services. The department that grants permanent residency and citizenship to immigrant investors who participate in the EB5 program.

Free Consultation: (877) 223-4684 From outside the US: (619) 677-5727 From Canada: (877) 223-4684.  All numbers go to the same line. From Italy: 0689385848, and  From England: 2033710984

Require Immigration Assistance?
We're here for all of your immigration needs. Fill out the form below and we will get in contact with you ASAP.

Your Name (required)

Your Email (required)

Phone

Your Message

Your Country

Captcha
captcha