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EB-5: make your petition now, South Africans!

EB-5: make your petition now, South Africans!

Date: 2019-02-22

The US-government approved employment-based (EB-5) programme is the only way to 'fast-track' US citizenship for South Africans - and it is proving hugely popular, despite the price-tag of $500000. In fact, there has been a 486% increase in the number of EB-5 petitions from South Africans during the past three years.

It is a one-of-a-kind initiative that has met with some resistance by US lawmakers due to fraud and misuse, but foreigners can still take advantage of the programme in its current form - it is apparently due to be either reformed or done away with entirely on 7 December, when US president Donald Trump will decide its fate. Experts believe that the programme is likely to be renewed provided the current EB-5 law is extended by Congress.

Foreigners who invest in the programme are obliged to contribute capital to the amount of $500000 with a view to investing in an approved business and creating ten permanent jobs in the process. These approved businesses are located in designated Areas (TEAs).

The 'prize' for putting one's capital to work in the US is the much-coveted Green Card - investors (and their spouses and unmarried children under the age of 21) are eligible to qualify to US citizenship after a period of approximately five years of permanent residency. It takes no longer than two years to receive the initial Green Card.

For those who want to live, study and find a job in the US, the proposition is an attractive one - as it has the added bonus of potentially receiving a return on one's capital in the form of a distribution of profits should the commercial enterprise be successful.

Potential investors should apply as soon as possible. If the programme is substantially reformed, new legislation could mean fewer visas being issued from next year onwards (7000 instead of 10000) - and application fees are likely to be higher (at least $1m).

The federally approved programme seeks to target high-net-worth individuals who can contribute towards the US economy and bolster employment. Cost aside, barriers to entry are negligible - one simply has to prove that the funds come from a legitimate source and one does not have a criminal record. Neither age nor educational requirements are taken into consideration and medical check-ups are non-invasive (such as being screened for TB).

It can take anything between 18 and 24 months to have one's application approved; so eager investors should start chasing their American Dream today. Only 2200-2400 petition are accepted every year, so time is of the essence.