Income Sharing Agreements for Talent Visa Applicants Benefits the US Economy

April 7, 2019 by Annette Palmer

When an immigrant applies for a talent visa to come to the United States, the high costs and fees often force them into taking out a loan from a bank or some other financial institution that provides a monetary loan in exchange for equity and/or a rate of interest that is accrued while the borrower pays back their debt. However, a new way of borrowing money called Income Sharing Agreements (ISA) allows individuals to borrow money from investors, who can be other individuals or even companies that have a vested interest in the borrower’s success. PassRight, an O-1 Visa company that sponsors immigrants and offers 100% financing for qualified applicants, now offers Income Sharing Agreement opportunities so that talented immigrants can come to the United States with minimal financial risk, find a great paying job with the help of the PassRight team, and only then start paying back the money they borrowed through a small percentage of their salary. The amount due, which is completely interest-free, is accrued over time, and is based solely on a percentage of the borrower’s salary. Therefore there is far less risk for the borrower, who doesn’t have to deal with unpredictable terms and interest rates of standard financial institutions.

ISAs For O-1 Visa Immigrants Would Help Alleviate Geographic Income Disparages

However unfair it might be, there are extremely talented individuals in this world being valued at a fraction of what their skills are worth in the United States. For the most part, people live and work in or around the same region where they were born. It’s easier that way, cheaper, and allows for the convenience of familiarity of surroundings and people. The sad truth, though, is that a person’s income is not just determined by their level of education or the position they hold in their field, but also by their geographic location. A person working as an engineer in a foreign country might only get paid a third of the salary that could be garnered doing the same job in Silicon Valley. Yet, the cost of immigrating to the United States often prevents people from even trying to apply for visas due to the expenses involved, which can quickly add up thousands of dollars, even before actual moving costs are calculated. The cost of visa application fees can add up to as much as $7,000, plus the cost of airfare to come to the United States. Most don’t come alone though. They bring their spouse and children, and also have to adjust to the cost of living in one of the most expensive metropolitan areas in the world, Silicon Valley, where the average two-bedroom apartment rents for over four thousand dollars per month. Although talent visa immigrants come to the United States to work hard and fill positions in the rapidly growing amount of STEM jobs, these initial high costs can be overwhelming and staggering to those who are not used to seeing so many zeroes at the end of each dollar amount. Many who are determined to come to the United States, there are traditional loans available, but then they end up in this country owing money that is quickly accrues interest and other possible fees. This not only puts them at a disadvantage culturally but financially as well, making it all the more difficult to start their new life in the US.

ISAs Are More Practical and Personal than Traditional Debt Financing

So much of immigrating to another country is about the emotional hardship of leaving family and friends, and being vulnerable to a new way of living in a place that does not always welcome immigrants in the warmest way. Talent-based visa recipients come to the United States to work hard, and build a life in this new country that offers so much opportunity for education and advancement. ISAs offer a more practical and personal solution than traditional debt financing because it allows borrowers to focus on finding a place to live and a job in the career field of their choice, without worrying about accruing interest or missing payments. Those who qualify for an O-1 Visa and choose to finance their immigration process with PassRight’s Income Sharing Agreement service would have a whole team of people helping them navigate through their financial, interpersonal and professional goals, giving talent based visa immigrants an immeasurable foundation for continued success in this country.  

ISAs for O-1 Visa Immigrants Supports Diversity and Cultural Expansion

With so many talented people around the world who are at the top of their fields, the United States stands to benefit greatly from enticing them to come here. However, the expenses associated with moving can often be more than someone might have in their savings. If ISAs were to become available to foreign nationals, places like Silicon Valley would not only benefit from their technical expertise but from their cultural background as well. According to an article on CNBC published July 2018, “The lack of workforce diversity and unconscious bias is a systemic problem in Silicon Valley,” an issue that could be resolved in part with ISAs, since investors can choose who they invest in. Through their personal and professional investment in the individual, they will inevitably see the foreign national as more than just a statistic in “the talent war,” but rather a person with great skill and motivation to succeed. While it might seem like a small issue, CNBC continues that, “47% of millennials want to work at diverse companies, according to a recent study.” This only goes to show how ISAs would not only benefit the foreign nationals coming into this country, but the wealthy tech business owners who are interested in attracting the best and brightest talent worldwide.

ISAs for O-1 Visa Foreign Nationals Could Reduce Risk to ISA Investors

Income Sharing Agreements for foreign nationals could also lessen the risk to investors, because immigrants who come to this country on an O-1 talent Visa are at the top of their field, possessing highly sought-after skills and knowledge that most employers are willing to pay six figure salaries for as early as their first day of employment in this country. That means that the investors not only benefit from a possible interpersonal relationship with the foreign nationals, but financially as well, since they can start collecting a greater amount toward their loan than they could from someone who just graduated college and has little or no work experience in their chosen field. So, if an investor has a contract that allows them to collect a percentage of someone’s income, that percentage would yield a much higher dollar amount from someone who is making six figures, than from someone making half of that. Furthermore, the investor can get their loaned money back faster to re-invest it. This benefits not only the parties involved, but the economy in general, as more money is being invested and exchanged.