Richard Jacobs, P.C.

U.S. Immigration

Employment Creation

 

THE EMPLOYMENT CREATION VISA

REVIEW:

Immigrant visa ("Green Card") available to persons who invest $1 million in a U.S. business and create employment for 10 or more U.S. workers in the process.

REQUIREMENTS:

1. Investment of $1,000,000:
a. $500,000 in a rural area (outside a standard metropolitan statistical area) or an area of high unemployment (150% of the national average)
i. determined by place of employment
b. Made after 11/29/90
c. May include cash, equipment, inventory, other tangible property, cash equivalents, and indebtedness
i. debts must be secured by investor's assets not the enterprise's assets
ii. the investor must be personally and primarily liable for the debt
d. Investment must be treated as capital and not a loan to the enterprise
e. Investment capital was acquired by lawful means
2. In a "New Commercial Enterprise"
a. Create an original business
b. Buy an existing business and restructure or reorganize it
c. Expand an existing business so that its net worth or employees increase by 40%
3. Create employment for 10 or more U.S. workers
a. Full-time employees (35 hrs p.w.) not independent contractors
b. U.S. citizens or lawful permanent residents
c. Within "a reasonable period of time"
d. Maintain existing employees (10 or more) if the new commercial enterprise involves the purchase of a "troubled business"
i. Troubled means showing a loss of at least 20% of the net worth prior to the loss
e. Under Immigrant Investor Pilot Program, employment of 10 or more persons indirectly through revenues generated from increased exports
i. Requires investment in an INS designated regional center
4. Investor actively involved in management or formulation of policy

NOTE: The immigration service has designated over 20 regional centers where the new jobs need not be directly created. Thus a person may qualify for this visa by investing $500,000 in one of these regional centers without having to show that the new commercial enterprise will directly create 10 or more new full-time positions.

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