A red carpet for EB-5 visa applicants

A large number of Indians are queuing up to invest in businesses in the US through the EB-5 Investor Visa which assures migration with a quicker eligibility for acquiring the Green Card. In the past four years or so, the number of high net worth individuals, corporate executives and businessmen opting for the EB-5 visas has nearly tripled, with over 350 applications in 2016.

A prominent expert and Managing Director of US Freedom Capital, David Gunderson, says though the 2017 figures are awaited, EB5 -- also known as the "golden visa" -- is gaining huge popularity due to "tightening of other visa categories, a more transparent EB-5 process and more Indian HNIs showing appetite for a global footprint".

At present, under the EB-5, an Indian is required to invest $500,000 (Rs 3.2 crore) for self, spouse, and any number of unmarried children, he said.
According to latest reports from the US, the Trump Administration plans to hike this amount to $920,000 per applicant in the regular category.

"We intend to provide higher targeted returns than an Indian fixed deposit, which will allow the investors get Green Cards for self-and-family plus an attractive return on investment," Gunderson said. He said Freedom Capital's proposal is virtually tailor-made for Indians who prefer smaller projects with low risks but high yields.

The investments under FD+Green Card are made in core real estate projects, parallel to the investments in US Freedom Capital Funds, with jobs created to fulfill the EB-5 Visa requirements, while current yield and risk mitigation are generated through investments in existing cash flow properties."Though we have clearly stated eight per cent returns are not guaranteed, the risk profile of FD+Green Card investment is designed to be lower than any pure EB-5 visa investments via the realty sector," he said.

So, the EB-5 applicants must select investments carefully as all are not filed with SEC and bad projects may escape scrutiny, he cautioned. He said US Freedom Capital offers investments under the supervision of SEC by principals with US investment banking and investment management licences.

It has several small-scale projects in the residential, health and education sectors in the range of $8-10 million, which materialise within three years, with a limited, three to 30 EB-5, investors who can get their capital back at the end of five years. 

Currently, India ranks third after China and Vietnam in terms of investors under the EB-5 Visas, with China cornering a lion's share of around 85 percent of all applicants.

By Quaid Najmi