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THE AMERICAN DREAM -USA-NEWSLETTER 09/2000

Published by 
THE AMERICAN DREAM – USA Services GmbH, Mehringdamm 62, 10961 Berlin, Germany
THE AMERICAN DREAM, Empire State Building, Ste. 3304, New York, NY 10118, USA
Tel.: +49 180-511 0511, Fax +49 180-511 0 512, www.americandream.de 
Copyright 09/00, all rights reserved.

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1. Green Card Lottery Update
2. E-2 Visa for Investors
3. News Break
4. Internet-Surf-Tipps
5. Official Visa Bulletin

1. GREEN CARD LOTTERY UPDATE

The deadline is approaching rapidly: The entries may be sent in between October 2nd and Nov 1st, 2000. For the first time, the “National Visa Center” is not the correct American authority to process the lottery applications anymore. New entries have to be sent to the Kentucky Consular Center in Williamsburg. Of course, THE AMERICAN DREAM will send all applications to the correct address, according to your country of birth.
 
If you have already sent a form to THE AMERICAN DREAM, you may expect an official confirmation form stamped by the US Postal office by the beginning of November. This will be your proof that your application has been submitted correctly and in time.
 
THE SELECTION PROCESS: The State Department’s Kentucky Consular Center will receive all applications. Upon receipt, the KCC will place the letter into one of six geographic regions and assign the letter an individual number. Within each region, the first letter randomly selected will be the first person registered, the second letter selected will be the second person registered, etc. When a case is registered, the applicant will immediately be sent a notification letter which will give visa application instructions. However, the FIRST winners will be notified only after April 2001!
 
About 90,000 persons, both principal applicants and their spouses and children, will be registered. Since it is probable that some of the first 50,000 persons registered will not apply for a DV-2002 visa, this figure is assumed to be large enough to ensure that all of the visas are used. However, there is a risk that some applicants will be left out. Indeed, this has been a problem for people drawn late in the selection process. According to the Department of State, all applicants will be informed promptly of their place on the list. Each month visas will be issued, according to registration lottery rank order, to those ready for visa issuance for that month. Once 50,000 visas are issued, the program ends. The current rank order number is published every month in THE AMERICAN DREAM’s newsletter. Registrants for the DV-2002 lottery will have to have their visa in hand by September 30, 2001 at the latest. You must be prepared to act promptly if your name is selected. The AMERICAN DREAM will help its customers through further bureaucratic procedures for free.

2. E-2 Visa for Treaty Investors

Of course, besides the Green Card, which allows you into the US indefinitely and for all purposes, there are many other visa types. After talking about the H-1B Visa last month (please see our archive for information on this type of visa) we would now like to introduce you to another one: the E-2 Visa.
 
INTRODUCTION: E-2 Treaty Investor status is premised on a bilateral investment treaty or agreement with the United States. At present, approximately 4 dozen nations (known as “treaty countries”) maintain such a bilateral investment relationship with the U.S.; a list of treaty countries is set forth below.
 
ELIGIBILITY: E-2 Treaty Investor status is available to a national of a treaty country seeking to enter the United States to direct and develop a business in which he has invested (or is in the process of investing) substantial capital. A “national” does not have to be a person—it can also be a company. As explained below, certain employees of a qualified investor are also eligible for E-2 status.
 
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EXAMPLE: Lloyd is the “fish and chips king” of London. He seeks to expand into the U.S. market by opening a chain of fish and chips restaurants in Arizona. If the below-described eligibility requirements are met, Lloyd should qualify to enter the U.S. and direct his business investment as an E-2 Treaty Investor.
 
ADDITIONAL EXAMPLE: German Jacquard Ltd., a textile company based in Frankfurt, has decided to purchase a velvet production factory in South Carolina. German Jacquard wishes to send Gerard, one of its managers, to South Carolina to serve as General Manager of the factory. On the basis of the German company’s investment in the U.S. factory, Gerard may be found eligible to serve as General Manager in E-2 status.
 
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The following standards apply to establishing eligibility for E-2 status:
 
a) INVESTMENT: Investment capital can take many forms, including cash, equipment, and inventory. Capital can also be cash equivalents, such as certificates of deposit or Treasury bonds. Indebtedness can qualify as investment capital for these purposes if secured by assets owned by the investor, provided that the investor is primarily liable and that the assets of the U.S. business are not used to secure any of the indebtedness.
 
EXAMPLE: Lloyd from London plans to finance his Arizona fish and chips empire from money loaned to him by his dear old Mum back in Manchester. Since Lloyd stands to lose only the shirt off his Mum’s back, and not his own, he will not qualify for E-2 status.
 
The applicant must have either invested or be in the process of investing in the United States. In the latter case, the investment must have progressed to the “point of no return,” i.e., the funds or capital to be invested have been irrevocably committed. Signing a contract is not enough to reach the “point of no return;” money must have been placed in escrow or trust account.
 
NOTE: Since the underlying purpose of this visa category is to stimulate economic growth in the United States, only enterprises which will create profits may qualify for E-2 status. “Economic growth” means more than an investment in a marginal enterprise made solely for the purpose of providing a living for the visa applicant. If the applicant cannot show that the business will have a significant positive economic impact on the area in which it is made—such as through the creation of jobs—his E-2 visa application will not be approved.
 
EXAMPLE: Analysis of Lloyd’s investment plan shows that his fish and chips “empire” will generate enough income to cover the rental of a flat in Phoenix (and another for his Mum upstairs), but not much more. The State of Arizona and its inhabitants will not otherwise benefit from Lloyd’s fish and chips. Under the circumstances, Lloyd should not hope to obtain E-2 Treaty Investor status.
 
The investment must be one which by its nature generates services or goods. An investment in stocks, research facilities and undeveloped land will not qualify for E-2 purposes!
 
b) “SUBSTANTIAL” CAPITAL MUST BE INVESTED: The investment must be one of “substantial” capital. Unfortunately, the term “substantial” has no concrete definition in this context. What is important is that the investment constitutes a significant commitment of capital which will ensure the success of the enterprise.
 
In determining whether “substantial capital” is involved, U.S. Consuls look to the percentage between the value of the business (or of its U.S. start-up costs) and the amount invested by the applicant. The smaller the business, the greater the amount of the investment must be.
 
As a rule of thumb, a proposed investment will be deemed “substantial” if the total value of the business (or of its U.S. start-up costs) is:
 
less than $500,000—the investor must invest at least 75 % of the total value of the business.
 
more than $500,000 but less than $3,000,000—the investor must invest at least 50 % of the total value of the business.
 
more than $3,000,000—the investor must invest at least 30 % of the total value of the business.
 
EXAMPLE: Lloyd from London is investing $250,000 in equipment and rental to establish 3 fish and chips restaurants in Phoenix. $200,000 of the investment capital is put up by loans obtained by Lloyd using his London flat as collateral. Lloyd’s Mum invests the remaining $50,000. Since Lloyd is personally liable for 80 % of the investment capital, he will likely be seen as meeting this requirement for E-2 Treaty Investor status.
 
ADDITIONAL EXAMPLE: German Jacquard Ltd. has invested $2 million in acquiring a velvet production factory in South Carolina. Southern Suede Inc., a Delaware corporation, has invested another $3 million in the factory. German Jacquard’s investment constitutes 40 % of the total investment of $5 million, enough to qualify as “substantial capital” for E-2 purposes.
 
c) DIRECTION AND DEVELOPMENT OF THE INVESTMENT: The investor must show possession of effective control of that business; only through such control can he or she (or it) be expected to direct the business’s affairs and development. Generally, one must document control of more than 50 % of the ownership of the business investment to be considered as having such control. Nevertheless, an applicant controlling less than this percentage can still prove effective control through such vehicles as proxy voting or management responsibility
 
d) EMPLOYEES OF E-2 TREATY INVESTORS: An individual or company may transfer certain employees (of the same nationality) to the United States in order to work with the business investment under E-2 status. Such employees must be performing executive and/or managerial duties, have “essential skills,” or be start-up personnel. Returning to the example of Lloyd from London: he may be able to send his Mum to Phoenix as an E-2 executive of the business, but had better be prepared to convince the U.S. Consul that Mum runs the company’s affairs, not Lloyd’s.
 
NOTE: An employee with “essential skills” cannot be sent to the United States in E-2 status unless it is shown that: (a) the employee is making a good faith effort to recruit and train American workers to perform the duties of the “special skills” position; or (b) such efforts are not feasible, since only the particular foreign employee is capable of performing the duties of the position.
 
e) NONIMMIGRANT INTENT: E-2 visa applicants must intend to leave the United States at the end of their authorized stay, and must convince the Consul of this before a visa can be issued. In practice, the burden of proving this intent is extremely light, inasmuch as the Consul knows that an applicant can legally extend his authorized stay indefinitely (see below). In recognition of this situation, the law does not even require an E-2 visa holder to maintain a residence outside the United States while maintaining valid E-2 status.
 
f) DURATION OF STAY: The initial period of authorized stay under E-2 status will not exceed one year (although the visa itself may be issued for a longer term). Extensions of stay may be granted in increments of up to two years each, without limit. Thus, as long as the underlying visa remains valid, the authorized period of stay in E-2 status can be extended indefinitely(!).
 
g) FAMILY MEMBERS: The spouse of the visa holder, as well as unmarried children under 21, will be issued E-2 visas for the same period of time as the principal visa holder. E-2 family members are not authorized to work in the United States, and must change to an appropriate status in order to be legally employed.
 
h) TREATY COUNTRIES: Nationals of the following countries are eligible to apply for E-2 status:
 
Europe
 
Austria
Belgium
Finland
France
Germany
Greece
Ireland
Ireland
Italy
Luxembourg
Netherlands
Norway
Russia
Spain
Sweden
Switzerland
United Kingdom
 
The Americas
 
Argentina
Canada
Columbia
Costa Rica
Grenada
Honduras
Panama
Paraguay
Surinam
 
Asia
 
Bangladesh
Japan
Korea
Oman
Pakistan
Philippines
Sri Lanka
Taiwan
Thailand
Turkey
 
Australia
 
Africa
Congo
Ethiopia
Cameroon
Egypt
Liberia
Morocco
Senegal
Togo
Tunisia
Zaire
 
IF YOU ARE INTERESTED IN THIS TYPE OF VISA OR ANY OTHER TYPE OF VISA, PLEASE CONTACT US at info@americandream.de TO SEE IF WE CAN HELP YOU! More details about this and all other types of visa can also be found in the extremely comprehensive book “United States, entry and work permits” by immigration lawyer Liam Schwartz. (www.amazon.com/exec/obidos/ASIN/9041104313/)

3. NEWS BREAK

PERCENTAGE OF FOREIGN BORN US POPULATION AT NINETY YEAR HIGH: According to data released this week by the Census Bureau, ten percent (26.4 million) people living in the US are foreign born, with about half of them coming from Latin American countries. While new arrivals from Latin America are essential to the current economic boom, there are concerns that they will not be able to experience the ideal immigrant experience of working hard, getting better jobs, and see their children have a better life. Many immigrants work in low level service jobs, where advancement is difficult.
 
Also, because wages in service jobs tend to be so low, recent arrivals are forced to work multiple jobs, leaving them with little time to take English classes and to integrate into US society. This creates a cycle in which their children are caught up. Children of parents who don’t speak English are more likely to drop out of school, increasing the chances that they themselves will end up in a job that provides little chance of advancement.
 
While there are a record number of foreign-born people in the US, as a percent of the population it is no where near the record. In 1910, 14.7 percent of the population was foreign-born. This number remained steady until the 1930s, when the Great Depression slowed immigration.
 
Details of the Census Bureau report are available online at www.census.gov/Press-Release/www/2000/cb00-147.html.
 
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FOREIGN CHILDREN IN THE USA: According to a study recently released by the Urban Institute, about one in five children entering American’s schools this year is either foreign-born or the child of an immigrant. In some states, such as California, the number is even higher—almost 50 percent, while in New York and Arizona, it is over 30 percent. The percentage of immigrant and first generation children in schools has increased three fold over the past thirty years, up from 6.5 percent of the student population in 1970. The countries of origin of the children have also shifted, from a primarily European background to a Latin American background. The study is not available online, but the Urban Institute’s website is www.urban.org.

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WORKING IN A US SKI RESORT? Ski resorts across Colorado have sharply increased the number of applications submitted for seasonal workers this year. Most resorts have at least doubled their requests for H-2B visas for workers to combat persistent labor shortages in the region. Most of the workers are being recruited from New Zealand and Australia. The Copper Mountain Resort, for example, is looking to hire as many as 150 H-2B workers and recently interviewed more than 300 potential employees in Australia and New Zealand. This year, more than 5,000 H-2B worker visas were used for ski resort workers. The H-2B visa is an often under-utilized visa category that allows employers to recruit unskilled workers for temporary and seasonal positions.

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HANDSHAKE CLINTON-CASTRO: In what both statesman called an “inevitable situation” the communist Cuban leader shook hands for the first time with an American President. It happened at the United Nations Millennium summit in New York. Walking in opposite directions in a narrow hallway, there was apparently no way to escape the awkward situation. They did not talk much and both announced later that there was no significance to their meeting.

4. INTERNET SURF TIPS

Telephone directory:
This comprehensive page lets you research all the information of all American phone books and yellow pages. Even a lot of addresses and phone numbers in foreign countries can be looked up.
www.555-1212.com

Translations:
Maybe you shouldn’t try to translate any important documents using this page, but its a great help to translate webpages and other documents of personal interest which you may not understand in the original language.
http://www.systran.de/

Currency converter:
What is the exchange rate of the US dollar to my local currency? Does my bank give me enough foreign money for my trip to the Caribbean? Answers to these questions can be found here:
www.xe.net/ucc/full.shtml

5. STATE DEPARTMENT VISA BULLETIN (official Version)

In this bulletin you can see the actual waiting periods for all kinds of categories in which you can apply for a Green Card. The three main categories are “Family based”, “Employment based”, and “Diversity Immigrant Category” (GreenCard Lottery). Especially in Family based categories the waiting period may exceed 10 years. GreenCard winners may read in this list, when, according to their case number, they may expect to be invited to the final interview at the consulate. We will publish the newest visa bulletin every month in this newsletter.

MMIGRANT NUMBERS FOR OCTOBER 2000 xxxFooxxx

A. STATUTORY NUMBERS
1. This bulletin summarizes the availability of immigrant numbers during October. Consular officers are required to report to the Department of State documentarily qualified applicants for numerically limited visas; the Immigration and Naturalization Service reports applicants for adjustment of status. Allocations were made, to the extent possible under the numerical limitations, for the demand received by September 9th in the chronological order of the reported priority dates. If the demand could not be satisfied within the statutory or regulatory limits, the category or foreign state in which demand was excessive was deemed oversubscribed. The cut-off date for an oversubscribed category is the priority date of the first applicant who could not be reached within the numerical limits. Only applicants who have a priority date earlier than the cut-off date may be allotted a number. Immediately that it becomes necessary during the monthly allocation process to retrogress a cut-off date, supplemental requests for numbers will be honored only if the priority date falls within the new cut-off date.

2. Section 201 of the Immigration and Nationality Act (INA) sets an annual minimum family-sponsored preference limit of 226,000. The worldwide level for annual employment-based preference immigrants is at least 140,000. Section 202 prescribes that the per-country limit for preference immigrants is set at 7 % of the total annual family-sponsored and employment-based preference limits, i.e., 25,620. The dependent area limit is set at 2 %, or 7,320.

3. Section 203 of the INA prescribes preference classes for allotment of immigrant visas as follows:

FAMILY-SPONSORED PREFERENCES
First: Unmarried Sons and Daughters of Citizens: 23,400 plus any numbers not required for fourth preference.

Second: Spouses and Children, and Unmarried Sons and Daughters of Permanent Residents: 114,200, plus the number (if any) by which the worldwide family preference level exceeds 226,000, and any unused first preference numbers:
A. Spouses and Children: 77 % of the overall second preference limitation, of which 75 % are exempt from the per-country limit;
B. Unmarried Sons and Daughters (21 years of age or older): 23 % of the overall second preference limitation.

Third: Married Sons and Daughters of Citizens: 23,400, plus any numbers not required by first and second preferences.

Fourth: Brothers and Sisters of Adult Citizens: 65,000, plus any numbers not required by first three preferences.

EMPLOYMENT-BASED PREFERENCES
First: Priority Workers: 28.6 % of the worldwide employment-based preference level, plus any numbers not required for fourth and fifth preferences.

Second: Members of the Professions Holding Advanced Degrees or Persons of Exceptional Ability: 28.6 % of the worldwide employment-based preference level, plus any numbers not required by first preference.

Third: Skilled Workers, Professionals, and Other Workers: 28.6 % of the worldwide level, plus any numbers not required by first and second preferences, not more than 10,000 of which to “Other Workers”.

Fourth: Certain Special Immigrants: 7.1 % of the worldwide level.

Fifth: Employment Creation: 7.1 % of the worldwide level, not less than 3,000 of which reserved for investors in a targeted rural or high-unemployment area, and 3,000 set aside for investors in regional centers by Sec. 610 of P.L. 102-395.

4. INA Section 203(e) provides that family-sponsored and employment-based preference visas be issued to eligible immigrants in the order in which a petition in behalf of each has been filed. Section 203(d) provides that spouses and children of preference immigrants are entitled to the same status, and the same order of consideration, if accompanying or following to join the principal. The visa prorating provisions of Section 202(e) apply to allocations for a foreign state or dependent area when visa demand exceeds the per-country limit. These provisions apply at present to the following oversubscribed chargeability areas: CHINA-mainland born, INDIA, MEXICO, and PHILIPPINES.

5. On the chart below, the listing of a date for any class indicates that the class is oversubscribed (see paragraph 1); “C” means current, i.e., numbers are available for all qualified applicants; and “U” means unavailable, i.e., no numbers are available. (NOTE: Numbers are available only for applicants whose priority date is earlier than the cut-off date listed below.)
 

All Chargeability Areas Exceptet Those Listed	CHINA mainland born	INDIA	MEXICO	PHILIPPINES
Family
1st	01FEB99	01FEB99	01FEB99	15APR94	08APR88
2A*	15MAY96	15MAY96	15MAY96	01OCT94	15MAY96
2B	01MAY93	01MAY93	01MAY93	01OCT91	01MAY93
3rd	01MAR96	01MAR96	01MAR96	01OCT94	15NOV87
4th	22JUN89	22JUN89	01JAN88	22JUN89	01AUG79

*NOTE: For October, 2A numbers EXEMPT from per-country limit are available to applicants from all countries with priority dates earlier than 01OCT94. 2A numbers SUBJECT to per-country limit are available to applicants chargeable to all countries EXCEPT MEXICO with priority dates beginning 01OCT94 and earlier than 15MAY96. (All 2A numbers provided for MEXICO are exempt from the per-country limit; there are no 2A numbers for MEXICO subject to per-country limit.)
 

All Chargeability Areas Exceptet Those Listed	CHINA mainland born	INDIA	MEXICO	PHILIPPINES
Employment-Base
1st	C	C	C	C	C
2nd	C	08MAR99	01NOV99	C	C
3rd	C	15MAR98	08FEB97	C	C
Other-Workers	01NOV95	01NOV95	01NOV95	01NOV95	01NOV95
4th	C	C	C	C	C
Certain Religious Workers	C	C	C	C	C
5th	C	C	C	C	C
Targeted Employment Areas/Regional Centers	C	C	C	C	C

The Department of State has available a recorded message with visa availability information which can be heard at (202) 663-1541. This recording will be updated in the middle of each month with information on cut-off dates for the following month.

B. DIVERSITY IMMIGRANT (DV) CATEGORY
Section 203(c) of the Immigration and Nationality Act provides a maximum of up to 55,000 immigrant visas each fiscal year to permit immigration opportunities for persons from countries other than the principal sources of current immigration to the United States. The Nicaraguan and Central American Relief Act (NCARA) passed by Congress in November 1997 stipulates that beginning with DV-99, and for as long as necessary, up to 5,000 of the 55,000 annually-allocated diversity visas will be made available for use under the NCARA program. This reduction has resulted in the DV-2001 annual limit being reduced to 50,000. DV visas are divided among six geographic regions. No one country can receive more than seven percent of the available diversity visas in any one year.

For October, immigrant numbers in the DV category are available to qualified DV-2001 applicants chargeable to all regions/eligible countries as follows. When an allocation cut-off number is shown, visas are available only for applicants with DV regional lottery rank numbers BELOW the specified allocation cut-off number:

Region	All DV Chargeability Areas Except Those Listed Seperately
AFRICA	AF 12,500
ASIA	AS 5,100
EUROPE	EU 14,000 Except: Albania EU 3,950
NORTH AMERICA (BAHAMAS)	NA 10
OCEANIA	OC 675
SOUTH AMERICA, CENTRAL AMERICA and the CARIBBEAN	SA 1,350

Entitlement to immigrant status in the DV category lasts only through the end of the fiscal (visa) year for which the applicant is selected in the lottery. The year of entitlement for all applicants registered for the DV-2001 program ends as of September 30, 2001. DV visas may not be issued to DV-2001 applicants after that date. Similarly, spouses and children accompanying or following to join DV-2001 principals are only entitled to derivative DV status until September 30, 2001. DV visa availability through the very end of FY-2001 cannot be taken for granted. Numbers could be exhausted prior to September 30. Once all numbers provided by law for the DV-2001 program have been used, no further issuances will be possible.

C. ADVANCE NOTIFICATION OF THE DIVERSITY (DV) IMMIGRANT CATEGORY RANK CUT-OFFS WHICH WILL APPLY IN NOVEMBER AND DECEMBER

For November, immigrant numbers in the DV category are available to qualified DV-2001 applicants chargeable to all regions/eligible countries as follows. When an allocation cut-off number is shown, visas are available only for applicants with DV regional lottery rank numbers BELOW the specified allocation cut-off number:
 

Region	All DV Chargeability Areas Except Those Listed Seperately
AFRICA	AF 12,903
ASIA	AS 5,150 Except: Bangladesh AS 5,100
EUROPE	EU 14,100 Except: Albania EU 4,016
NORTH AMERICA (BAHAMAS)	NA 15
OCEANIA	OC 700
SOUTH AMERICA, CENTRAL AMERICA and the CARIBBEAN	SA 1,500

In the next newsletter you will read about visas or even greencards for “religious workers”.
Any suggestions? Please e-mail: info@americandream.de