H-1B Visa and Immigration
	LAW OFFICE OF AJAY K. ARORA Empire State Building 350 Fifth Avenue, Suite 1415A New York, NY 10118 Phone: (212)268-3580 Fax: (212)268-3582 Email: info@h1b1.com

The Immigration Act of 1990 created a new immigrant visa category for alien entrepreneurs known as the EB-5 Immigrant Investor visa program. This category offers opportunities for foreign nationals seeking U.S. permanent resident status based upon a qualifying investment. The EB-5 program requires an individual to "invest or be actively in the process of investing" either $1 million or $500,000 (if in a rural or high unemployment area), which is "at risk" in a "new or existing business enterprise" that directly results in the creation or preservation of ten full-time jobs within a two-year period. The foreign investor must manage the business on a day-to-day basis or through policy formation.

The investment may be in the form of cash, equipment, inventory and other tangible property. In addition, indebtedness secured by assets owned by the foreign entrepreneur may also be considered capital. A debt will qualify as capital only when the foreign entrepreneur is primarily and personally liable for the indebtedness.

The assets of the new commercial enterprise cannot be used to secure any of the indebtedness. An investor attempting to qualify under this category may establish a new commercial enterprise in one of four ways:

• The creation of an original business.
• The purchase of an existing business and its simultaneous or subsequent restructuring or reorganization so that a new commercial enterprise results.
• The expansion of an existing business so that its net worth or employees increases by 40%. The investor still needs to show the minimum financial investment and the creation of at least 10 jobs.
• The purchase of a "troubled business" which has been in existence for at least two years and has incurred a net loss during the twenty-four month period prior to the filing of the petition. This loss of profit must equal at least 20% of the business' net worth.

To deter fraudulent applications, the law provides that a green card will be issued conditionally for a two-year period. The conditions are removed, and the investor and his family are issued unconditional green cards after demonstrating that the investment is valid, and the requisite jobs have been created and preserved by the investment enterprise.

[Note: Please consult with an attorney specializing in Immigration & Nationality law for professional advice in specific situations.]