EB-5 is a visa or a green card application that requires to invest at least half a million dollars into the US economy. You can read more information on EB-5 Investor Visa .EB-5 program has been in use for all kinds of projects from coffee shops to large research facilities for the past 25 years to attract foreign capital into the US. Using the EB-5 Investment for a public stadium is an interesting proposition, though. There was a recent news publication in the New York Times covering the EB-5 proposal.
From the immigration law standpoint, the idea seems totally doable and attractive. It says that the foreign investors will receive annual dividends, two season tickets on top of a getting a green card. One of the most important EB-5 Investor visa criterions is that an investment will create jobs within 2 years. Indirect jobs (such as contraction workers employed by a contractor) will count too. The creation of jobs is tightly correlated with the commercial feasibility of an EB-5 approved project. The investor in the stadium did mention that his own EB-5 qualified green card was obtained through a failed business endeavor that is described here. There is a great risk for EB-5 investors while choosing a program to invest in. Another requirement of the EB-5 Visa is that the investment must be “at risk”. It means that investors are not being able to easily withdraw the money in case of a problem. This legal instrument from one hand protects the foreign investor visa program from fraud. On the other hand it allows certain degree of abuse of the entrepreneurial foreign businessmen. Not only is the money in jeopardy if the project fails, but the green cards as well. As described on our EB-5 page. The validity date of EB-5 based green cards is 2 years. If the project (Regional Center) cannot prove that 10 jobs have been created for each I-526 Immigrant Petition by Alien Entrepreneur, the green card extensions (after 2 years) will be denied and the investment will be lost.
In case of a stadium, disregarding everything else, it seems like a viable business project. It stays under a great degree of public scrutiny, the community involvement is clear and the possibility of dividends is pretty high. If Mr. da Silva plans to raise half the cost of construction via EB-5, which is about $78 million, the stadium will have to prove that it will create approximately 1560 new jobs for US workers.
Hopefully, the project will turn out well and the investors will get green cards, dividends in free tickets! If you have any questions or would like to obtain more information about Investment Based green card or visas, please contact our office at 202.367.9138. Visit our website: www.ilexlaw.com.