With the recent rise of tariffs and trade wars, the world seems to be shifting away from globalism. This has left some investors searching for alternative strategies for global expansion, continued profits and new opportunities. You might find these opportunities in various U.S. immigration programs, and these programs often cater specifically to foreign investors. This could apply to Canadians who want to hedge their bets and mitigate the effects of the coming trade war. While April 2 brought some end to the uncertainty that was crippling global markets, there are still many unanswered questions ahead. It might help to discuss these U.S. immigration programs with an experienced immigration lawyer in Canada.
The EB-5 Investor Visa
Perhaps the most obvious choice for foreign investors who want to move to the United States is the EB-5 investor visa program. Under this program, you may pursue permanent residence if you agree to invest a certain amount of money in the United States.
As a foreign investor, you must establish a new “commercial enterprise” in the United States. You also have the option to purchase an existing business in the United States. Finally, you can expand your foreign business into the United States, as long as you increase its net worth by 40% or expand your workforce by 40%.
Under the EB-5 program, a new commercial enterprise could be a sole proprietorship, partnership, holding company, joint venture, corporation, business trust, LLC, or any other publicly or privately owned business entity. Note that purchasing a home in the United States does not count as an “investment” under this program.
Most business investors will need to invest at least $1.05 million to qualify for a green card. Remember, this amount is in American dollars – not your home country’s currency. That being said, it may be possible to qualify if you invest just $800,000 – but only if you invest in a “targeted employment area.” These are generally rural or low-income areas in desperate need of new investment.
You cannot invest any funds obtained unlawfully, and you cannot invest in exchange for loan schemes or any other “debt agreements.” In addition, you cannot create any kind of contract that ensures you will be repaid the amount you invest. Once you invest these funds, you cannot get them back, and you must be committed to your new commercial enterprise.
The EB-5 program is not a “golden visa.” Other countries might allow you to invest large sums in exchange for visas with few additional strings attached. At least in the context of the EB-5 program, this is not possible in the United States, and a key reason is the “job creation” requirement.
Investing money is not enough, and you also need to create at least 10 new full-time jobs. If you invest outside of a regional center, you must “directly” create these new jobs. In other words, you must hire at least 10 American employees to work at your new company. If you establish your new enterprise outside of a regional center, the rules are more flexible. You can get away with “indirectly” creating 10 new full-time jobs, and you only need to hire one American employee directly.
For example, your business might require a steady supply of raw materials, such as steel or lumber. This may cause an increase in production at a nearby steel plant or lumber mill, thereby requiring these employers to hire at least nine workers. Assuming your business is outside of a regional center and you hire at least one American worker directly, this would allow you to qualify for the EB-5 visa.
Finally, you have the option of purchasing a “troubled business.” In this scenario, you might not need to hire any new employees. Instead, you can simply maintain the current workforce at your company for at least two years after purchasing it. The United States government defines “troubled businesses” as those with net losses within the previous two years of your purchase. This loss must be worth 20% of the business’s net worth. Finally, the business must be in operation for at least two years before you try to purchase it.
The Gold Card Visa Program
One of the newest visa programs is the “Gold Card” visa program, which was unveiled by the new administration shortly after it took power. The details of this program are not yet clear, but it would function like an investor program. As the name suggests, this would also be a straightforward “Golden Visa,” similar to those in other nations.
Under this program, the pathway to citizenship would be very simple: If you pay $5 million, you would immediately become a permanent resident, and you would be well on your way to attaining citizenship. The United States is an attractive place for many wealthy individuals to invest, and this might be an attractive option for those who don’t want to worry about the complex requirements of the EB-5 visa program. In particular, the job creation requirements can be a headache for many foreign investors.
There is some speculation that the Gold Card visa program will completely replace the EB-5 investor program. However, the EB-5 program is slated to continue until at least 2027, so investors who fall under the $5 million threshold would still have the option to invest lower amounts until this date. Consider speaking with a lawyer to learn more about investor programs in the United States.
Contact Ackah Business Immigration Law Today
Ackah Business Immigration Law is an immigration law firm with offices in major Canadian cities. These include Calgary, Toronto, and Vancouver. Although our Canadian immigration lawyers have considerable experience with immigration programs in the True North, we are also more than familiar with U.S. immigration programs. If you want to explore U.S. immigration programs for new investment opportunities, why not schedule an initial call with one of our client engagement coordinators to learn more about how you can work with Ackah Business Immigration Laws today? During this initial discussion, we can assess your unique business goals, priorities, and needs. Contact us today to get started.
